Do you regard economic growth as a desirable objective of economic policy forany government??

Question

just asking your opinions...

thanks

Answer 1

The objective should be the improvement of the standard of living, and economic growth is a major contributor to improving the quality of life. But environmental factors matter also, and unless the growth is shared by the population, the increase in GDP does not produce much improvement in standard of living. Some of the suddenly rich oil exporting countries of the world are examples how little benefit people can get from large increases in GDP if the gains are grabbed by the few.

Answer 2

It should be the ideal policy for any government. Adam Smith has mention in his book "The wealth of nation" that a growing economy is a healthy and welfare maximising one. Especially the part when he gives comparison between China and Europe. In summary, growing economy allows wages to grow and therefore consumption increase. Despite so, government should not allow their economic to overheat which will eventually lead to roller coaster ride.