Answer to Question #268992 in Economics for Angellyne

Question

Many believe that the main objective of government economic policy should be to increase productivity and economic growth.”

Using the data above and your economic knowledge, critically evaluate this statement by providing THREE reasons for and THREE reasons against. Ensure that you provide a relevant real-world example from the given Caribbean economy to support EACH point.

Answer 1

Yes, increased productivity will help improve the quality of use of the limited resources available, such as oil. Economic growth will lead to an improvement in the quality of life of the population, will form the basis for scientific and technological progress and the improvement of technologies.

On the other hand, increased productivity will lead to the layoff of some of the workers who will be redundant in the new production scheme. With a high rate of economic growth, a stratum of the population may appear, which will lead to an asocial lifestyle due to the lack of a permanent occupation, which may affect the health of the population and the health of future generations. Economic growth should be accompanied by an increase in the level of education of the population, but at present, in the Caribbean, the issue of education is problematic, which can also lead to social stratification.