In many countries, the government prioritises economic growth above all other concerns. Discuss the advantages and disadvantages of this.

Economic growth means a development in real GDP, which is an increase in the value of national output, income and expenditure. Many countries prioritize

this

over other aspects. In

this

essay, I will explain the advantages and disadvantages of

this

practice.

To begin

with benefits, economic expansion leads naturally to better average incomes. Its values indicate that consumers consume more goods and services and enjoy better standards of living.

For example

, GDP during the twentieth century was a major factor in reducing absolute levels of poverty and enabling a rise in life expectancy.

Moreover

, with higher output and positive economic growth, firms tend to employ more workers creating more employment.

On the other hand

, as a limitation and a disadvantage, these enhancements can lead to the risk of inflation, which is the rise in aggregated demand resulting from economic expansion. To elaborate, if the

overall

orders in a market grow more quickly than the

overall

provided products, the economy will have an excess of demand but a lack of supply.

This

puts the economy and the individuals in tough times. One of the most straightforward examples of inflation in action can be seen in the price of milk. In 1913, a gallon of milk cost about 36 cents per gallon. One hundred years later, in 2013, a gallon of milk cost $3.5, nearly ten times higher. In conclusion, GDP alone, despite its advantages, may not measure a nation's development or its citizens' well-being.

Thus

,

further

concerns need to be considered and studied in order to mitigate the effect of its disadvantages.