Economic growth has many positive effects: More people have a roof over their head and food on the table. They can invest in education, technology, and health. Growth reduces inequality by enabling affluent people to support lower-income neighbors and relatives. It can spur innovation that leads to better, cheaper products. Growth can bring in new energy sources that are cleaner than old, polluting fossil fuels.
The pace of growth varies widely across countries and over time. For example, China has prioritized high-growth policies over the past 25 years, and its resulting economic miracle has virtually eradicated extreme poverty. Growth has also raised living standards in most of the world, raising life expectancy to unprecedented levels and providing a pathway out of poverty for hundreds of millions of people.
Despite these benefits, economic growth isn’t an unambiguous good. Using more resources means that a society may prioritise income and wealth over the public good, for instance by building new power plants that cause environmental harm. Affluent individuals also tend to choose richer (higher fat, sugar) diets, which can lead to a host of problems from obesity to diabetes and heart disease.
In addition, a few well-documented concerns about growth remain. Its impact on the environment – which is likely to be exacerbated by climate change – is one. Another is the risk of inflation, which can damage the purchasing power of those whose incomes rise too fast. Finally, some research suggests that continued economic growth increases the risk of certain health outcomes – including mental illness, infectious diseases like cholera, and malaria – although this relationship is contested by many studies.