Economics HL
Economics HL
4
Chapters
117
Notes
Unit 1 - Intro To Econ & Core Concepts
Unit 1 - Intro To Econ & Core Concepts
Unit 2 - Microeconomics
Unit 2 - Microeconomics
Unit 3 - Macroeconomics
Unit 3 - Macroeconomics
Unlocking National Income Stats: What They Reveal About Economies
GNI vs. GDP: Which Better Measures Economic Well-Being?
Understanding Aggregate Demand Beyond GDP
Understanding Aggregate Supply Monetarist Vs. Keynesian Views
Understanding Equilibrium Monetarist Vs Keynesian Models Explained
Understanding Macroeconomic Equilibrium: A Deep Dive
Economic Growth Blessing or Curse for Living Standards
Understanding Unemployment Myths, Measurements, and Meaning
Deflation Demystified: Why Lower Prices Aren't Always Better!
Understanding Inflation Insights & Implications For Economies
Understanding Equality Vs. Equity In Income Distribution
Understanding Economic Inequality Income vs. Wealth
Unveiling Income Inequality The Power of Lorenz Curve & Gini Coefficient
Understanding 2018's Lorenz Curve Income Quintile Insights
Understanding Poverty Absolute Vs. Relative Explained
Understanding Poverty Beyond Just Income Measures
Understanding Globalization, Technology, and Income Inequality Impact
Understanding Taxes From Direct To VAT Explained!
Understanding Tax Rates ATR vs MTR Explained
Unlocking Equity: How Taxation Curbs Income Inequalities
Strategies To Combat Poverty Beyond Traditional Taxation
Unraveling Money From Basics To Banking & Policy Mechanics
Understanding The Demand For Money: A Deep Dive
Central Bank's Tools Steering Money Supply & Interest Rates
Impact of Contractionary Monetary Policy on Aggregate Demand
Monetary Policy Key Strengths and Limitations Explained
Mastering Fiscal Policy How Government Spending Influences Economy
Unlocking The Power Of The Keynesian Multiplier
Unveiling Fiscal Policy: Key Advantages & Notable Disadvantages
Unlocking Economic Growth: The Power of Supply-Side Policies
Boosting Growth: The Power of Supply-Side Policies
Unveiling Supply-Side Policies: Market-Based Vs. Interventionist Insights
Unlocking Macroeconomic Objectives: Tools & Tactics for Policymakers
Mastering Price Stability: Fiscal vs. Monetary Policies
Effective Policies To Counter Different Types Of Unemployment
Macroeconomic Dilemma: Unemployment Vs. Inflation
Unit 4 - The Global Economy
Unit 4 - The Global Economy
IB Resources
Unit 3 - Macroeconomics
Economics HL
Economics HL

Unit 3 - Macroeconomics

Economic Growth Blessing or Curse for Living Standards

Word Count Emoji
641 words
Reading Time Emoji
4 mins read
Updated at Emoji
Last edited on 5th Nov 2024

Table of content

Consequences of economic growth

Impact on Living Standard

  • Definition: Economic growth means the economy is making more stuff (real GDP). This is like leveling up in a video game; more levels mean more rewards.
  • Good News: If an economy grows faster than the population, income per person goes up. Imagine your family's pie gets bigger and you have fewer siblings to share it withโ€”you get more pie!
    • But Wait!: If only rich people get the pie, not everyone's living standards improve.
    • Example: Jeff Bezos in a bar makes the average income go sky-high, but nobody else gets richer. Except maybe the bartender hoping for a generous tip!
  • Environment: Growth can mean bad news for Mother Earth. If growth causes extreme weather, floods, and fires, people's lives don't get better.
  • Jobless Growth: Using robots and AI can lead to growth without creating jobs. Imagine a factory where robots build everything, and humans just watch; they might not have jobs anymore.

Impact on the Environment

  • Mixed Effects: Growth can be like a superhero with a dark side. It can help the environment by allowing for better regulations but can also harm it by causing pollution.
  • Environmental Kuznets Curve (EKC): Think of this as a roller coaster. At first, pollution goes up with growth, then drops down. But recent research says it's not that simple.
    • Example: Just because a city switches to electric cars doesn't mean the power plants aren't still polluting elsewhere.
  • Sustainable Growth: Can we grow without hurting the planet? Yes, but we need to stop supporting things like overfishing and fossil fuels. It's like telling kids to eat their veggies and not just candy.

Impact on Income Distribution

  • Equality and Inequality: Growth can be a double-edged sword. Sometimes it helps to reduce the gap between rich and poor; sometimes it makes it wider.
    • Government Role: Governments can use the extra money from growth to help the poor, like giving out more scholarships or building better parks.
    • Butโ€ฆ: Growth doesn't force governments to be fair. The money might just go to a few industries or places, like only building fancy malls in rich neighborhoods.
  • Technological Progress & Corporate Power:
    • Example: Imagine if only people good at video games got paid more, leaving others behind. This is what's happening with skilled workers and big corporations having more control.
  • Trade and Globalization: More trade means winners and losers. It's like a sports league; some teams benefit from new rules while others lose out.
  • Taxes and Welfare: Think of this as the game settings. Some countries make the game easier for the rich and harder for the poor. Others balance it out.
    • Example: The USA has high inequality compared to some European countries, like playing a game on hard mode versus easy mode.
  • IMF Thoughts: Even big organizations like the IMF are thinking about how growth needs to be fair, not just fast. It's like realizing that winning a game isn't fun if you cheat.

Conclusion

Economic growth isn't just about getting richer. It's a complex recipe that includes how we live, our planet's health, and how fair we are to one another. It's a grand game where we need to think about all players, not just the high scorers.

 

Hope you find these notes fun and informative! Feel free to ask if you have any questions or need more examples! ๐ŸŽฎ๐ŸŒ๐Ÿ’ฐ

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IB Resources
Unit 3 - Macroeconomics
Economics HL
Economics HL

Unit 3 - Macroeconomics

Economic Growth Blessing or Curse for Living Standards

Word Count Emoji
641 words
Reading Time Emoji
4 mins read
Updated at Emoji
Last edited on 5th Nov 2024

Table of content

Consequences of economic growth

Impact on Living Standard

  • Definition: Economic growth means the economy is making more stuff (real GDP). This is like leveling up in a video game; more levels mean more rewards.
  • Good News: If an economy grows faster than the population, income per person goes up. Imagine your family's pie gets bigger and you have fewer siblings to share it withโ€”you get more pie!
    • But Wait!: If only rich people get the pie, not everyone's living standards improve.
    • Example: Jeff Bezos in a bar makes the average income go sky-high, but nobody else gets richer. Except maybe the bartender hoping for a generous tip!
  • Environment: Growth can mean bad news for Mother Earth. If growth causes extreme weather, floods, and fires, people's lives don't get better.
  • Jobless Growth: Using robots and AI can lead to growth without creating jobs. Imagine a factory where robots build everything, and humans just watch; they might not have jobs anymore.

Impact on the Environment

  • Mixed Effects: Growth can be like a superhero with a dark side. It can help the environment by allowing for better regulations but can also harm it by causing pollution.
  • Environmental Kuznets Curve (EKC): Think of this as a roller coaster. At first, pollution goes up with growth, then drops down. But recent research says it's not that simple.
    • Example: Just because a city switches to electric cars doesn't mean the power plants aren't still polluting elsewhere.
  • Sustainable Growth: Can we grow without hurting the planet? Yes, but we need to stop supporting things like overfishing and fossil fuels. It's like telling kids to eat their veggies and not just candy.

Impact on Income Distribution

  • Equality and Inequality: Growth can be a double-edged sword. Sometimes it helps to reduce the gap between rich and poor; sometimes it makes it wider.
    • Government Role: Governments can use the extra money from growth to help the poor, like giving out more scholarships or building better parks.
    • Butโ€ฆ: Growth doesn't force governments to be fair. The money might just go to a few industries or places, like only building fancy malls in rich neighborhoods.
  • Technological Progress & Corporate Power:
    • Example: Imagine if only people good at video games got paid more, leaving others behind. This is what's happening with skilled workers and big corporations having more control.
  • Trade and Globalization: More trade means winners and losers. It's like a sports league; some teams benefit from new rules while others lose out.
  • Taxes and Welfare: Think of this as the game settings. Some countries make the game easier for the rich and harder for the poor. Others balance it out.
    • Example: The USA has high inequality compared to some European countries, like playing a game on hard mode versus easy mode.
  • IMF Thoughts: Even big organizations like the IMF are thinking about how growth needs to be fair, not just fast. It's like realizing that winning a game isn't fun if you cheat.

Conclusion

Economic growth isn't just about getting richer. It's a complex recipe that includes how we live, our planet's health, and how fair we are to one another. It's a grand game where we need to think about all players, not just the high scorers.

 

Hope you find these notes fun and informative! Feel free to ask if you have any questions or need more examples! ๐ŸŽฎ๐ŸŒ๐Ÿ’ฐ

Unlock the Full Content! File Is Locked Emoji

Dive deeper and gain exclusive access to premium files of Economics HL. Subscribe now and get closer to that 45 ๐ŸŒŸ

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