Prof. Jay Zagorsky, your insightful analysis of the latest GDP figures is illuminating and the query you pose about the societal impact of relentless economic growth resonates deeply. While economic growth is a cornerstone of development, it can have adverse effects when pursued unchecked. One critical juncture where growth may harm society is environmental degradation. For instance, during the Industrial Revolution, rapid economic growth led to pollution, deforestation, and resource depletion. By the mid-20th century, the infamous London smog and the heavily polluted Cuyahoga River in the U.S. highlighted the human cost of unbridled industrialization. Income inequality is a pivotal concern. While economic growth can create wealth, its benefits are not always evenly distributed. The Gini coefficient, a measure of income inequality, has been rising in several countries. In the U.S., it increased from 0.397 in 1980 to 0.485 in 2019, indicating a significant rise in income disparity. Furthermore, unchecked growth can strain social infrastructure. Consider China's rapid urbanization; while it lifted millions out of poverty, it strained healthcare, education, and housing services, leading to societal imbalances and dissatisfaction.
Today’s US economic figures show #GDP is growing at a 4.9% annual rate. #GDP tracks what the country produces. The rule of 70 (see chapter 12 of my Business Macroeconomics textbook) tells us if this rate keeps up then in about 14 years the U.S. economy will double in size. That is amazing! Doubling is done by producing twice as much stuff, producing stuff that is twice as valuable, or a combination. This means soon the economy will be producing far more things, like cars and homes, plus they will be fancier and more valuable. Before patting ourselves on the back, we need to ask questions such as what will traffic be like when far more cars are produced? What will air-travel be like if people fly much more often? Economic growth is the mantra of every politician. The ultimate GDP question to ponder is “When does economic growth start hurting society more than it helps?” https://lnkd.in/ewwGHPix
