Benefit to Government. Increased Pollution: As more output is produced and as consumption rises, more waste is produced. Future GDP Shifts Less risk than external growth (e.g. The best phase is expansion. The benefits of economic development to both individual citizens and society at large are so important that it is essential that governments always work towards … It may reflect improvement in quality of life or living standards, it may also mean more jobs and opportunities for young people. Advantages of Organic Growth. This is … Economic growth creates higher tax revenues and there is less need to spend money on benefits such as unemployment benefits. brands, customers) Allows the business to grow at a more sensible rate in the long run; Disadvantages of Organic Growth Analysts watch economic growth to discover what stage of the business cycle the economy is in. Technology can also create complications for lawmakers and regulators. The government is slowing growth to prevent bubbles. Learn vocabulary, terms, and more with flashcards, games, and other study tools. It estimates that they generate US$250 billion in revenue a year, creating 29.5 million jobs worldwide. Increased capital investment. Likewise, this may also mean a lot of negative things within the country. If growth is too far beyond a healthy growth rate, it overheats. The economic growth produces more vacancies for job and bring better standard of living to them. through mergers and takeovers) Can be financed through internal funds (e.g. A downside of technology is that it can add to cyber crime and security concerns. retained profits) Builds on a business’ existing strengths (e.g. Economic growth can reduce debt to GDP. Alternatives to landfill are being developed in recent times to deal with this problem. Benefits of Economic Growth Not Evenly Distributed. The Phases of Economic Growth . Economic growth brings advanced tax incomes for the government, Because of this, the government spends less unemployment benefits. The level of Economic growth is usually a prime indicator of various factors within a country. Cultural Times assesses the contribution of cultural and creative industries to economic growth. The COVID-19 pandemic that roiled the global economy in early 2020 has seen the economic outlooks for both developing and developed nations plummet to negative growth rates. This is when the economy is growing in a sustainable fashion. Improved Public Services. Start studying Economics 2.3 - Benefits of Economic Growth. With increased tax revenues, the government can spend more on the health care and education. That creates an asset bubble. One effect of economic growth is an increase in the real GDP, which is achieved by increasing the value of national output or decreasing national expenditures. 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