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Location: Macroeconomics Unit I - Measurement of Economic Performance
Discussion: How much growth is "enough" growth?
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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?
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mrdaily |
1. 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.
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timothysun |
2. 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 |
3. 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.
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ma.sheng.lun |
4. 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.
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rishabhtagore |
5. 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
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jlau21 |
6. 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.
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mina.song |
7. 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.
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annieycsung |
8. 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.
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AndreaEggli |
9. RE: How much growth is "enough" growth?
Oct 20 2008, 9:35 AM EDT
When France's GDP is on a high level and all citizens are in a good states and can live aboth the poverty line, then France should stop using resources to make their country even better. France should use their resources when they see a lack somewhere in there economy, however, they should also spare some of their resources. If France would face an environmental or governmental crisis, they would benefit from the resources they spared. Like this France would be stable and would still have enough resources they could use in times of war.
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srainer |
10. RE: How much growth is "enough" growth?
Oct 22 2008, 3:29 PM EDT
The reason why economies work is because everybody is supposed to try and earn as much money until it satisfies them. If people are without work and the government is constantly supporting them, they lose motivation to work and the countries efficiency and productivity goes down. For the economy of France to continue to grow, they need to re-think how they are protecting the unemployed and how the country should employ them.
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AnastasiaLammer |
11. RE: How much growth is "enough" growth?
Oct 23 2008, 12:37 PM EDT
"how much growth is enought growth"? the world is a selfish and selfcentered place where most of the people try to make and get as much money, land, capital etc. Not really but sometimes by looking around it seems like that. Somehow the humans seem not to be able to get enought of no matter what it is. Since centuries the people have thought for land and and surviving. To me this is okey because thats what a capitalistic economie is made of fighting and always wanting more.
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