How growth are improved living standards
The two main benefits of growth are improved living standards and technological advancement.
- As an economy grows, the output of capital and consumer goods will enhance, which should in turn lead to an enhance in the level of employment as firms need more workers to maintain production. The higher level of employment combined with enhanced production should result in the average household being able to attain buy consumer goods, which will get better their standard of living.
- Technological advancements will often happen as an economy grows because firms will seek to maximise profits by inventing latest products to develop new markets and meet consumer requirements. This dynamic growth will normally happen when an economy is growing because it will need firms to undertake investment, which is encouraged by higher business confidence.