Why Growth is Good Essay Example | Topics and Well Written Essays - 1250 words

Why Growth is Good - Essay ExampleIn the article Why Growth is Good the author asserts that U.S. preservation is slowing down precisely this is not the case of the current times as the nations total output of goods and services grew at an yearly rate of 2.5 percent from July to September and this rate of growth is double the rate of growth from the last quarter. The economy is not following a brisk footmark but showing the signs of take off. But the economic growth of Germany is on the slower side and the government of the concerned landed estate has nearly halved its growth forecasts to wiz percent. The reason being shocks in exports and the powerhouse of Europe is on the slower side. Government intervention is necessary in cases to push up demand but to a certain extent. Free market is necessary to achieve the equilibrium. Economic growth is the amount of goods and services produced over time. With economic growth, development is creating a well environment lead come under it s purview. Per Capita Income tolerate be taken as a measure to capture economic growth. Let the population of country A and B be 20 and 5 respectively and the average income be $ 200 and $100 respectively. It will appear country A as the economic aloney developed country but it is not the case as PCI of country A is 10 and that of country B is 20. Poor countries are oft exploited by the richer ones as industries that cause environmental degradation are shifted in those countries. This tends to pollute the rude(a) resources which have negative effects on the behavior of the people residing in the poor countries. The open up of new industries has created growth or employment opportunities but the darker side of the coin is the extraction of irreversible natural resources. (Office of the Management and Budget, 2010, p.153). The above pie chart proves that U.S. allocates a large proportion of its capacity in social security. The budget of 2001 allocates $ 17.5 billion to support sma ll business gravel and 25 billion dollars on microloans which will create employment opportunities. A path that leads to most optimal growth path is the toughest to get recognized. Earlier a school of economists believed in trickle down hypothesis where the benefits of growth will trickle down to the people who form the base of the society. But soon other school of economists began to contradict by arguing that those who are in the higher aims of the society will reap all the benefits and the poor will be restrain in a vicious circle. This theory was proved right in the later stages. So growth may not create equal opportunities for all (Basu and Mallik, 2007). The statement of the rich gets richer while the poor gets poorer is well known. The statement that middle class is happy to pay taxes and contribute in the welfare is controversial as all are involved in finding out ways to evade taxes and keep their money in their own pockets. Consider the case of mainland China. China an nounced to lower the GDP target to 7.5 percent which gave rise to mixed feelings around the globe. This created tremors in the market but some were of the opinion that this strategy will revive China in taking the path of sustainable development. They argue that this would help China to achieve a higher quality and higher level development over a longer time span and all are certain about the amount of welfare sustainable development can bring about (Prasad and Rajan, n.d., p. 1). A recession is followed by recovery. In this phase growth is bound to be slow but this situation is welcomed from every levels of society.