090 Economic growth

Men Looking At Graphs On A Screen

Question

Many governments think that economic progress is their most important goal. Some people, however, think that other types of progress are equally important for a country. Discuss both these views and give your own opinion.

Model Answer

The success of a nation is often measured in terms of GDP, while other metrics, such as happiness, are ignored. However, there is a growing belief that we should look beyond economics and consider other ways to assess a country's development. I personally believe a government's primary goal should be to create an egalitarian society.

The argument in favour of focusing on economic growth is that without a successful economy, a government cannot fund essential programmes. Most government income is raised through taxation. When the economy of a country is growing, there is more money available for the government to spend in areas that require it. For example, in the current political climate, many governments are committed to spending more money on defence. The easiest way to achieve this is by generating more money through economic growth.

The counter-argument to this is that the benefits of economic growth are often limited to a small section of society, namely businessmen and politicians. This is harmful to society because the majority of people will be resentful of their inferior socio-economic status. Therefore in order to ensure stability, a government's main goal should an equitable distribution of wealth among its citizens. This is independent of the need to continually grow the economy. Studies have shown that people are often happier in a fairer society regardless of their overall wealth.

In conclusion, while it is true that economic growth increases the amount of money available, this is beside the point if a country's wealth is not shared fairly among its citizens.

(263 words)

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