The Measurement of Human Capital in Economic Growth In the late 1980s and early 1990s, empirical macroeconomists turned to attempts to explain differences in growth rates around the world. The ideology of economic growth has a long history which can be traced back at least to the mid-18th century when Adam Smith published his Wealth of Nations. (1992), 224 European Review of Economic History ... rapid economic growth during the 1950s, especially in Japan and West Germany. Economic growth means an increase in real GDP - this leads to higher output and higher average incomes. I think this is silly, but it is how some people feel. "If this were China, it would be done in six months," one says. There are many arguments against economic growth which support the idea that economic growth is bad for the economy. GDP was developed in the US during the Great Depression, and came into its own during the second world-war as a measure of how many guns, ships and planes the US economy was able to produce. These factors effect the economic growth as they are the four factors of production. ADVERTISEMENTS: Rapid Population Growth as an Obstacle to Economic Growth! I am concerned about natural resources like oil running out when the demand goes up. "That's the only way to keep the economy growing.". 10 Countries Seeing Economic Growth. A first argument is based on diminishing marginal returns. Economic growth - Economic growth - The role of government: The differences in rates of growth are often attributed to two factors: government and entrepreneurship. But GDP measures quantity, not quality. arguments against growth. Critics believe that unrestricted growth may widen inequalities, which could cause social unrest. The benefits become less dramatic as people become richer, and some surveys suggest there comes a point when increased access to goods or services does little to improve a person's well-being. I kind of get what the writer is saying here about the limit on what good economic growth can do for poor people. In other words, the student rebellion can be viewed as a kind of mass reaction to rapid economic growth. These factors effect the economic growth as they are the four factors of production. Which of the following could not be considered a major economic system? True, it drives down cost, which makes things that poor people previously couldn't afford suddenly attainable. No doubt the speed at which the tourists swept past the architectural and artistic glories of Paris, pausing only to snap the obligatory photographic record of their presence before heading off for an orgy of handbag shopping, would have raised some supercilious French eyebrows. B) It is easier to reduce poverty when the economy is growing than when it is not. @lighth0se33 – I know what you mean. Another major benefit of fast economic growth is that it can help cope with rapidly expanding populations. Initial Period of Rapid Growth . The average world GDP growth is slightly under 3 percent, annually. 2 Arguments from an economic perspective Economic growth has for a long time been one of the concerns of the academic subject of economics. At first, the Soviet Union experienced rapid economic growth. It may reflect improvement in quality of life or living standards, it may also mean more jobs and opportunities for young people. D) Economic growth is not only desirable but also necessary. The following are the various factors that led to the rapid growth in the economic development in China: In the initial phase, reforms were initiated in agriculture, foreign trade and investment sectors. The two are not mutually exclusive. 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