Growth Economics

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Neo-classical economics are sometimes referred to as ‘growth economics’, as the theory assumes that endless economic growth is possible. (Compare to ecological economics, wellbeing economics and other economic theories that reject infinite economic growth.)

Economic growth refers to an increase in the production and consumption of goods and services. For distinct economic or political units, economic growth is generally indicated by increasing gross domestic product (GDP). Economic growth entails increasing population times per capita consumption, higher throughput of materials and energy, and a growing ecological footprint. Economic growth is distinguished from “economic development,” which refers to qualitative change independent of quantitative growth. For example, economic development may refer to the attainment of a more equitable distribution of wealth, or a sectoral readjustment reflecting the evolution of consumer preference or newer technology. [1]