Question

In a globalized economy, does economic growth always lead to increases in a country's welfare?

Answer 1

Growth only means that the economic pie is gertget larger. But it does not account for welfare gains. We can have poor welfare even when we have high rate of growth.

InduaI economy is a good example for that. Despite growing at 7-9% the welfare impact are almost negligible. For the welfare impact of growth we need

1. Better policy by the government

2. Better redistribution mechanism

3. Better trade

4. Larger employment to people

5. Moderate stabdsst of living.