Benefits of Economic Growth  

Economic Growth means an increase in real GDP. This increase in real GDP means there is an increase in the value of national output / national expenditure.

The Benefits of economic growth include:

  1. Higher Incomes,. This enables consumers to enjoy more goods and services
  1. Lower unemployment With higher output firms tend to employ more workers creating more employment.
  1. Lower Government borrowing. Economic growth creates higher tax revenues and there is less need to spend money on benefits such as unemployment benefit.
  1. Improved public services. With increased tax revenues the govt can spend more on the NHS and education e.t.c.
  2. Money can be spent on protecting the environment

 

See aslo: Should Government Increase the Rate of Economic Growth?

Essays and Revision Notes on Economic Growth