Economic Growth
Georgia College Demo
Zander Gordan
Welcome
Quick poll — What share of humans lived in extreme poverty in 1820? (hold up fingers, 1 for 10%, 9 for 90%)
Objectives
By the end of today you should be able to:
- Define GDP growth vs. real GDP per capita (economic) growth.
- Relate economic growth to the PPF.
- Explain why economic growth is important.
- Evaluate critiques of growth.
Measuring Growth
- GDP (market value of final goods & services).
- Real GDP (adjusts for inflation).
- Real GDP per capita (income per person).
- Growth rate = %Δ over time.
Economic growth = GDP growth - inflation - population growth
Growth as an Outward PPF Shift
Drivers: Capital (K), Labor (L), Technology (A)
The Hockey‑Stick of History
Why the sudden, unprecedented acceleration circa 1800?
Growth & Human Welfare
Outliers? Does more money always buy longer life?
Technological Progress: The Price of Light
Declines in Violent Crime
Critiques of Growth
| Perspective | Core Claim |
|---|---|
| Anti‑consumerist | Endless consumption erodes well‑being and virtue. |
| Environmental (Degrowth) | Infinite growth on a finite planet is impossible; prioritize ecology. |
| Inequality | Average growth hides rising gaps; who benefits matters. |
Addressing the Critiques
- Green innovation (cheaper clean energy).
- Inclusive institutions that spread gains.
Key Take‑Aways
- Economic growth drove the “hockey‑stick” rise in income and life expectancy.
- Growth = PPF shift powered by capital, labor, and—above all—technology.
- Growth has trade‑offs: environment, inequality, culture.
- Policy challenge: sustain, enhance, and distribute future growth.
Exit Ticket
Pick one dividend of economic growth that you think is most important. Pick one drawback you think most important.
Thanks! Questions?