Consequences Of Economic Growth On Our Planet Earth

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2. What are the consequences of economic growth on our planet Earth? Economic growth is “the most fundamental indicator of an economy’s health”. They define it as the rate of growth of the national income of a country, measured by the annual percentage rate of change of country’s gross domestic product. According to Mankiw (2010), economic growth is one of the reasons why advanced countries have become richer and have improved standards of living. Economic growth has also attracted attention because of the positive impact it has on society, as it has been associated with benefits such as increased wealth and standards of living among others. However, economic growth has also had negative impacts on society. This premise shall discuss both the positive and negative impacts economic growth has had. 2.1 Positive Impacts of Economic Growth 1. Improved living standards There has been an unprecedented increase in living standards in most parts of the world over the last half century. When rich countries today are compared to their own history, there is a vast difference in the standards of living. For instance, while having a reading light in the night was once a luxury which only the very rich could afford, today about 75% of the world has access to electricity in their homes. 2. Reduction in poverty Studies have shown that there is a positive relationship between economic growth and the rate of poverty reduction in developing countries. There has been a significant increase in

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