Economic Growth

Georgia College Demo

Author

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:

  1. Define GDP growth vs. real GDP per capita (economic) growth.
  2. Relate economic growth to the PPF.
  3. Explain why economic growth is important.
  4. 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

  1. Economic growth drove the “hockey‑stick” rise in income and life expectancy.
  2. Growth = PPF shift powered by capital, labor, and—above all—technology.
  3. Growth has trade‑offs: environment, inequality, culture.
  4. 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?