The Pros And Cons Of Economic Growth

Economic growth is an increase in capacity of an economy to produce goods and services, compared to from one period of time to another. The Gross Domestic Product (GDP) found within in an economy is formally used as a measuring point for how an economy is growing or performing within its framework of economic components. Gross domestic product itself is the total market value of all final goods and services produced in an economy over a period of time.

By utilizing the data presented from ones economic growth, individuals can determine the trends, precise statistics and the events to come within a country’s future in order to develop forecasts and decisions based on an economy’s current course.

Economic Growth within Australia:

Australia

Government-owned businesses that face strong private sector competition operate similarly to those competitors. And simply privatizing a fat, lazy, government-owned monopoly tends to create a fat, lazy, private monopoly, not a lean, mean productivity machine.” As productivity is a reliant factor behind GDP growth, it is quite possible to presume that this introduction of government policies have slightly contributed towards the recent 0.5% growth downfall. Productivity as a whole represents the consumers and firms within the Australian economy and these facts presented to us suggest that not only is productivity a cause towards economic growth but the recent actions of the government may have affected the recent trend in GDP

China has been a backer behind most of Australia’s booms dating back to the ‘Coal’ booms in 1960. Even today in 2015 china still remains to be Australia’s biggest benefactor

Referring to ‘Figure 2’ a trend is shown escalating in business investments form the year 2005 onwards suggesting certain businesses within Australia were benefitting from this boom. In correlation to this, the trends of unemployment were affected as a decrease arose from being 5.0% in 2005 to 4.2% in 2008.

It is forecasted that within the next 5 years the mining boom will hit a bust due to the amount of resources we have being depleted over time. However numerous individuals argue that this does not affect Australia’s economic growth as things such wage rate growth has remained just as strong prior to the mining boom. Other areas such as household income were also substantially increased over the time period of the boom. ‘Figure 3’ shows this as a 10% change from the years 2005-2006 to 2007-2008 reinforcing the idea of income sustainability throughout the mining