The Impact of Economic Growth on Quality of Life

Sydney Chikalipah^*
*Correspondence: Dr. Sydney Chikalipah, Department of Business Management, Massey University, Auckland, New Zealand, Email:

Description

Economic growth is a rise in the capacity of an economy to provide goods and services compared to one period of time to another. It can be measured in nominal or real terms, the latter taking inflation into account. Despite the use of other metrics, aggregate economic growth is generally measured in terms of Gross National Product (GNP) or Gross Domestic Product (GDP). The progressive increase in a country's wealth is known as economic growth. The term "Economic Growth" is applied to economies already experiencing a rise in per capita income, although the term is often used in discussions of short-term economic performance. Growth can be described as a process of transformation. Whether looking at an economy that is already contemporary and industrialised or one that is still in the early stages of development, the growth process is uneven and unbalanced. Economic historians have tried to come up with a notion of the stages that each economy must go through as it develops. Primary (agricultural), secondary (manufacturing), and tertiary (trade and service) production all compete for dominance in development. For the American economist, growth proceeds from a traditional society to a transitional one (in which the foundations for growth are developed). The two most frequently mentioned reasons are entrepreneurship and investment. Economic growth is defined as an increase in the output of goods and services in an economy, as well as increases in capital goods, labour force, technology, and human capital. Economic growth is generally quantified in terms of a rise in the aggregated market value of additional goods and services produced.

Understanding economic growth

Economic growth means an increase in total production in an economy. Regularly, but not essentially, cumulative increases in production are related to increased average marginal productivity. That led to a rise in incomes, motivating consumers to open up their wallets and buy more, which is worth a higher material quality of life or standard of living. In economics, development is commonly demonstrated as a function of physical capital, human capital, technology, and the labour force. Commonly, growing the quantity or quality of the working age population, the implements that they have to work with, and the recipes that they have available to combine capital, labour, and raw materials will lead to an increase in economic output. There are a few techniques to generate economic growth. Firstly, a growth in the amount of physical capital goods in the economy. Adding capital to the economy leads to a growth in the productivity of labor. Economic growth is measured using physical capital, human capital, the labour force, and technology. Simply said, increasing the number or quality of working-age people, the tools available to them, and the recipes for combining labour, capital, and raw materials will result in increased economic output. Economic growth can happen in a number of ways. The first way is through an increase in the economy's stock of physical capital objects. It has been confirmed that increasing capital in the economy leads to an increase in labour productivity. Technological advancement is the best way to increase economic growth.