Economic Growth

Economic growth is generally measured by the rate of growth of per capita real income or production, such as Gross Domestic Product (GDP). By definition, higher growth makes countries achieve higher levels of per-capita income in the future. Since the main goal of economists and economic [Page 409]policy makers is to improve economic well-being, of which per capita income is considered a major indicator and determinant, economic growth is a central issue in economics and political economy.

By and large, economists have uncritically accepted the desirability of economic growth, either relying on the idea that more (of goods and services) is better for people, or because growth reduces poverty and provides resources for other social improvements. However, it is by no means clear that more is ...