to what extent is economic growth desirable

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Otherwise known as aggregate supply. It could also be related to an outward move in the production possibility frontier.

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Debatable. It is certainly shown by an increase in aggregate supply which means that an economy is capable of producing more goods and services. It could be the increase in aggregate supply (largely driven by greater productivity) allows for an increase in aggregate demand.

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The increase in AD is the spur for the investment that leads to an increase in AS.

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And further boosting AS.

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Economic growth is only one component in the HDI (Human Development Index).

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I doubt if this is statistically true. When the economy is faltering there is more political unrest but when the economy is booming, workers are more likely to go on strike for more pay, especially if the growth has lead to increased inflation. Unions and workforces are stronger when there is full employment.

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Investment is a component of AD it is true but it is more important here as the driver of an increase in AS. Increases in AS lead to economic growth.

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This is an interesting comment and this paragraph would probably be better after the next one as evaluation of that point. Read on.

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A very interesting and informative pair of paragraphs. The basic point must be that economic growth has lead to enormous plundering of the earth's unsustainable natural resources as well as the negative externalities which may lead to global warming. The previous paragraph is an interesting counterpoint to this.

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Good point but the conclusion must be that up to this point in time, economic growth has not been good for the planet. The writer is suggesting that more economic growth may now change that.

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Unsustainable growth (where AD is increasing faster than AS so the economy cannot keep up with the demand) will inevitably lead to inflation that must be corrected due to the problems caused by excessive inflation. This can lead to a stop start economy where after a period of growth, there is a period of recession while inflation is dealt with.

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They would demand higher pay and get it as the economy is booming so employers can afford it. This further stokes inflation. This leads to a loss of international competitiveness.

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This would be disagreed with by many Monetarist economists. They would argue that wealth will 'trickle down' so that everyone gets wealthier.

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This has been the case recently in the UK but is it an inevitable consequence of increased growth? Probably not if we look at other countries.

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Not to the same degree but surely to some extent on the whole.

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Health and education both had far more resources as a result of the recent economic growth.

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Too high and it sets off inflation. It must be the amount of growth that inflation is not triggered off with. In other words, AS (aggregate supply) must be able to keep up with it.

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Not in GDP per capita I would think.

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Regulated to ensure greater equality and less negative externalities I think the writer means.

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****This is a well planned and structured piece that makes many good points. It would benefit from the classic AD/AS diagram to show economic growth and its effect on inflation. My main criticism is the disregard for the role of aggregate supply as this is the driver of economic growth.

to what extent is economic growth desirable

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