economic growth

Economic growth is the increase in the value of goods and services produced by an economy. As a measure of wealth it has been a indicator much watched by politicians, though there is great controversy among economists about its use in policy (see below).

It is conventionally measured as the percent rate of increase in real gross domestic product, or GDP. The real GDP per capita of an economy is often used as an indicator of the average standard of living of individuals in that country, and economic growth is therefore often seen as indicating an increase in the average standard of living.

However while monetary exchange growth is strongly correlated with the "standard" of living it is poorly correlated with the "quality" of living. Accordingly:

There are major problems in using economic growth to measure increasing well-being or quality of life among a people. Many efforts have attempted to overcome the implied conflict between economic growth and sustainability. The concept of uneconomic growth arose in the 1990s do deal with this. Several Alternative Progress Indicators attempt to measure growth in human well-being separate from growth of exchange in the economy.

To refer link sourceen: wikipedia: economic growth

issue: relation of economic growth measures to policy

The use of gross domestic product measures and the optimization of economies to achieve targets set relative to GDP, especially the debt to GDP ratio, contradicts all modern thinking among economists about the proper use of these measures, which are narrowly defined and have no direct relationship to the goals governments all share: to promote well-being among their citizens and care for those who are helpless.

Position: promoting economic growth should be the top priority of any government.

Position: economic growth should be a priority only in the context of sustainable development and increasing well being.

Position: economic growth is an outdated concept and should be abandoned before it causes a global ecological crisis.