In Economics, growth is seen in a highly positive light. Growth is what allows u
ID: 1142716 • Letter: I
Question
In Economics, growth is seen in a highly positive light. Growth is what allows us to satisfy more wants and live a more fulfilled life. Growth is what gives us a higher standard of living. But there can be negative side effects to growth. What negative side effects to growth do you see? i.e. are there significant tradeoffs that worries you? Do we need special rules (institutions) to mitigate these trade-offs? Even if those rules slow down growth? What is your opinion?
(another way to think about this is do the rules of the game (institutions) that create the incentives needed to maximize economic growth also allow for undesirable behaviors? And if so what should be done about them)
Explanation / Answer
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Answer-
Can there can be negative side effects to growth. What negative side effects to growth do you see?
Yes just like everything under the sun having advantages and disadvantages similarly the growth can have its own share of disadvantages.
Below are the few cons or disadvantages of growth-
Do we need special rules (institutions) to mitigate these trade-offs? Even if those rules slow down growth?
We already have institution that check growth and also evaluate the trade offs between the growth and depression stages of the country or the economy.
The institution that exists are-
We can also have other organization or a regulatory authority setup. The implications of such specific authority can be-