Costs of Economic Growth

     Costs of Growth:

·         Environmental costs: Higher growth means higher output. This means factories generate higher pollution in the production process. Also it may mean worsening traffic and congestion and unaffordable house prices.

·         Inequality: Although growth is beneficial, it will not benefit everyone equally. Those benefitting most will be those with already above average incomes. This will increase the income inequality and so relative poverty will increase.