Evaluate the benefits of Economic Growth for the UK

Regarded as the most important goal of an economy, economic growth is a means by which

people can improve their quality of living, along with making the country richer. It is defined as

the increase in value of real GDP. Economic growth can be achieved through increasing

production through spending and investment. But what are the benefits of economic growth for

the UK?

Economic growth has always been a major objective for the UK government because it is

essential for raising living standards, either directly by raising income or indirectly by helping to

create a better environment for a better quality of life. Raising income means that people would

be able to buy more things and improve their wellbeing. Moreover, economic growth does not

have to cause environmental issues, especially considering the vast resources the UK has for

renewable energy.

Improved economic growth would result in higher incomes or more opportunities for leisure for

workers, due to the larger economy with money to spare on those options. This would heighten

people’s perceived wellbeing and permit them to buy more luxuries. More economic growth

typically means more factories or plants for production, which increases mass production of

goods and lowers cost, also known as economies of scale. Lower costs and higher incomes

would mean people could buy more goods and services, improving their happiness.

In addition, economic growth helps everyone, with people in high-paying jobs getting more
money and investing it into the economy, resulting in trickle down economics, where poorer

people will benefit from the extra money being put into their salaries. Moreover, the more money

the wealthy put into developing companies, the more money they can make from them in the

long run. Furthermore, the higher salaries for everyone will mean the government can collect

more in taxes and spend more on education and healthcare.

From this evidence, we can see that economic growth would help everyone, with higher salaries

meaning the government can collect more in taxes and people will have an increased likelihood

of increasing their own consumption, raising GDP. Moreover, the increased government tax

revenue can go towards spending on education, healthcare and decreasing the national debt.

Additional money being invested in companies would decrease unemployment by creating new

jobs, further contributing to UK GDP.

Finally, economic growth will be sustainable because of the increase in skilled workers as a

result of the extra spending on education and healthcare, creating a new pool of well educated

workers with less health issues that would make them unable to work certain jobs, such as

asthma making it impossible to work in physical jobs like construction. These new workers and

more jobs will keep economic growth from falling and decrease any inequality gaps.

Through this, economic growth would be sustainable for the UK and highly beneficial in the

long run because the larger quantities of people qualified to work in construction and desk jobs

would make it easier for innovation and existing companies to develop. Innovation would be

made easier because it would be easier and cheaper to set up a new company and employ people,
and there would be more opportunities for entrepreneurs. Existing companies would find it easier

to develop due to the increased supply of workers looking for jobs and spending more money to

increase the demand for workers to build new offices, factories and staff those new buildings.

In conclusion, economic growth for the UK would be incredibly beneficial and make the UK a

much more attractive place to live.