Economic growth is the production and consumption of goods and services. The economy grows if people buy more than they are selling or saving. Economists believe that there are five moral consequences to economic growth.
Economic growth can lead to unequal resources, increased pollution, increased disparity between rich and poor, unstable prices, and unsustainable lifestyles. Economic growth can solve some of these problems as per Ben Friedman Toronto, but we must understand the moral consequences before believing that economic growth will be the solution. Here’s what you need to know about the ethical implications of economic growth.
The Moral Consequences of Economic Growth
There are five moral consequences to economic growth. Economic growth can lead to unequal resources, increased pollution, increased disparity between rich and poor, unstable prices, and unsustainable lifestyles.
-Unequal Distribution of Resources: Increased consumption may create an uneven distribution of resources with fewer resources for the poor.
-Increased Pollution: The production of goods and services can cause pollution through manufacturing or farming.
-Increased Disparity Between Rich and Poor: Strong economic growth can lead to a disparity between the rich and the poor where the wealthy will have more money than necessary while the poor struggle to survive.
-Unstable Prices: Economic growth can cause prices to be unstable as demand increases with increased production, leading to higher prices on goods or services.
-Unsustainable Lifestyles: When people consume more energy than is available, it creates an unsustainable lifestyle where there are not enough natural resources for future generations.
The Unintended Effects of Economic Growth
Economic growth can solve some of these unintended consequences, but we must understand the moral implications before believing that economic growth will be the solution. For example, the increased disparity between rich and poor may lead to increased crime rates, which can have adverse effects on society. Economic growth is good for some things, but we must understand the moral consequences before believing that economic growth will be the solution.
What Causes Economic Growth?
Economic growth measures the production and consumption of goods and services. People buy more than they sell or save, which leads to economic growth.
Although it may be hard to see the consequences of economic growth, they are still there. We must take the time to consider the effects of our decisions.
Economic growth is a phenomenon that has taken place in the last two centuries. It has changed the nature of society for the better. We have more food, technology, and medical advancements than ever before. However, this growth has come with consequences. The first is the unintended effects hard to see because they are so far-reaching. For instance, you could argue that economic growth has led to the abundance of materialism in society.
The other consequence is that economic growth requires many resources to exist. For instance, if there is a natural disaster, it could cause economic growth to stop for some time.