The Benefits of Economic Growth is one of the best essays in the entire book. The author, David Kelley, PhD, takes us on an intriguing journey into the future. The premise of this book is that humans are destined to live in a Golden Age of abundance. He makes this point through numerous examples throughout this book. Kelley uses the examples of how people in various countries have used the gifts of prosperity to improve their lives, as well as those of their descendants.
The book is divided into two main sections, each focusing on a different aspect of the subject of economic theory. The first section addresses the question, what are the benefits of economic development? The second addresses issues such as population control, child mortality, international trade, and even the role of technology in prosperity. The topics explored in these sections provide an excellent background for the examination of these ideas.
The essay concludes with a discussion about what would constitute the benefits of economic growth. The author presents his answer, that prosperity results from increasing income levels through technological innovation. It also involves creating new industries to support those incomes. Technological change is both a positive and negative force. Technological change can create wealth, but it can also result in significant reduction of employment and living standards.
The benefits of economic growth are examined within the context of a global context. These include benefits to individual citizens through better health and nutrition, higher standard of living, and less poverty and less environmental damage. The benefits of economic growth will also be felt by the inhabitants of a nation, through higher educational levels, rising average life expectancy, reduction in infant and death rates, and reduction in relative trade surpluses or deficits. These surpluses or deficits represent a loss of investment income, and so contribute to the overall reduction in the value of the nation's currency.
The benefits of economic growth also include an increase in human capital, which include education, scientific and technological advancements, and skill enhancement. Human capital increases over time as people continue to experience and learn. This increases productivity through improvements in economic output and employment. Educational attainment leads to economic advantage in terms of both income and access to other goods and services. Higher education also leads to more opportunities for employment.
One of the benefits of economic growth is a reduction in the distribution of income through taxes. A large percentage of national income goes to the richest 10% of the population. Revenues from sales of products and services go to the consumers, increasing employment opportunities and overall production. Income from ownership of property, such as real estate and businesses, goes to the owners of these assets, along with the profits from these enterprises.
Another of the benefits of economic growth is lower unemployment rates, as people become economically stronger due to the increased opportunities created through education, technology, and skill enhancement. The potential savings created through improved technology . . . . . . result in lower consumption, allowing businesses to create additional jobs. There are also direct benefits, such as higher pay, job security, improved benefits, and so on. All these opportunities have affected the birth rates of both men and women, and their respective families.
One of the most popular claims made in favor of the benefits of economic growth is that individuals have the right to live as they wish and do as they choose. Individuals are allowed to marry whomever they choose, have their own kids, and have the opportunity to work wherever they choose. The only thing that restricts them is the government. The right to vote, for example, would be taken away from people living in poverty, as they would have no opportunity to participate in elections for those positions. Overall, it's not a hard concept, but one that's not always fully understood by most.