The Costs of Economic Growth. Introduction. Despite the economic success of the past 200 years And the development of logical models t explain the world’s economic growth, many people remain skeptical about the future Not everyone today sees economic growth as a good thing
“ It is because economic growth has both its gains and its losses that we cannot decide whether we support or reject it. We demand the abolition of poverty, illiteracy and diseases, but we cling desperately to the beliefs, habits and social arrangements which we like, even when these are the very cause of the poverty which we deplore”
1. Economic growth, despite its long run benefits, causes hardships. And because these hardships are not equally shared, some individuals or groups may at least in the short run suffer serious welfare losses
2. Economic growth cannot continue forever because diminishing returns will eventually set in.
2. Unequal gains from economic growth diminishing returns will eventually set in.