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Location: Macroeconomics Unit I - Measurement of Economic Performance
Discussion: How much growth is "enough" growth?
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alicesu alicesu |
How much growth is "enough" growth?
Feb 12 2008, 4:02 AM EST Last class we discussed how in France, you can be unemployed for a long period of time and still enjoy welfare and social benefits from the government. Mr. Welker talked about how this is detrimental to their economy because, unlike nations like China where unemployment means you will probably starve, this allows for citizens to meander along and not strive for efficiency, thus hindering France's economic growth. But what if France, as an MEDC, has already "grown enough"? What if its citizens are already happy? What if it's happy with its current GDP? Does it still NEED to strive for full employment and maximized efficiency? 1 out of 1 found this valuable. Do you? |
 mrdaily |
RE: How much growth is "enough" growth?
Feb 13 2008, 4:16 AM EST Well obviously France is already fairly satisfied with their GDP because of the welfare and social benefits they give. However, why would a country be completely satisfied with their current GDP if they have enough resources to increase efficiency and the GDP level? If France is satisfied, then i don't think it necessarily needs to strive for full employment, but what is the harm of increasing economic production and efficiency? The citizens may be happy but wouldn't they be happier with a little more money in their pockets. 0 out of 1 found this valuable. Do you? |
 timothysun |
RE: How much growth is "enough" growth?
Feb 13 2008, 4:31 AM EST I think that personally enough growth boils down to how much resources are left. In my opinion, not used resources are just waiting to be used to increase utility and profit. Isn't that what we want? I think France could use more: I mean, their economy in my opinion is not strong enough. 0 out of 1 found this valuable. Do you? |
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MondGu MondGu |
RE: How much growth is "enough" growth?
Feb 13 2008, 5:48 AM EST Economies should always strive for full employment and maximized efficieny (full allocation of resources), this will increase the country's GDP, Resulting in a higher GDP per capita, meaning each person can now spend more money. This increased purchasing power will hopefully help the global economy out a bit. 0 out of 2 found this valuable. Do you? |
 ma.sheng.lun |
RE: How much growth is "enough" growth?
Feb 13 2008, 8:11 AM EST I agree with Mond that all economies should strive for full employment and to maximize their efficiency to boost their GDP. I think the problem is the French people are not motivated to work anymore because why would they work when they can enjoy the benefits the government is providing them? If France beleives their GDP is not strong enough, they will need to find a way to motivate the people to work. 0 out of 2 found this valuable. Do you? |
 rishabhtagore |
RE: How much growth is "enough" growth?
Feb 13 2008, 9:14 PM EST In such a globalized economy today, you can never have enough growth because everthing is always changeing and prices are going up, due to less receorces. Also it will not be able to sustain itself for long without andeverlasting amount of economic growth 2 out of 2 found this valuable. Do you? |
 jlau21 |
RE: How much growth is "enough" growth?
Feb 17 2008, 4:32 AM EST Yea, I agree with all of you guys. Economies should always strive for maximum efficiency and full employment, so that they can increase GDP (and GDP per capita). With an increased GDP per capita, citizens would have more money in their pockets. However, since people in France have such great social benefits even when they are not employed, I guess there is no motivation to find a job since you can survive without one. Although these social benefts have great short term affects, in the long run, France won't be able to expand to its full economic potential. 1 out of 2 found this valuable. Do you? |
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mina.song mina.song |
RE: How much growth is "enough" growth?
Mar 17 2008, 1:59 AM EDT I think France is doing right although people are not motivated to work. People have right to protected from the government. But I think France should think or bring out some new law or method to motivate citizens to work rather than doing nothing. But in China, unemployed people are starving to death, which is so sad about it. therefore, i don't know how,,,,,, but......... we need to think of some effective social security with motivating people to work. Do you find this valuable? |
 annieycsung |
RE: How much growth is "enough" growth?
Mar 18 2008, 11:55 AM EDT An economy should be seeking to employ all its resources in order to maximize utility and employment. France may be satisfied with itself at the moment, but maybe there are still resources out there for them to employ. In that case, they should continue to increase their GDP, as they are able to, but then again...if they are happy, I suppose they aren't obligated to do so. It just gives me a feeling of sleepiness. Do you find this valuable? |
