Does Economic Growth Lead to Economic Development? - created from Mind Map

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Higher incomes

Higher GDP per capita should lead to improved living standards

Depends on how fairly the income is distributed

Creation of Inequality

Economic growth leads to increase in inequality

Improved economic indicators of welfare

Economic growth has led to higher indicators of welfare

It will not necessarily be the case for all sections of the population

Higher government revenues

Increased government revenues from taxation

Better provision of essential services

Negative externalities and lack of sustainability

Pollution

Deforestation, climate change

Unsustainable, future generations suffer

Herman Daly, "Uneconomic Growth". Increases in production come at an expense in resources and well-being that is worth more than the items made.

Does Economic Growth Lead to Economic Development?