By economic growth one understands the relative change of the resource of a national economy from one period to the next. As yardstick the gross domestic product (GROS DOMESTIC PRODUCT) or the gross national income normally serves in Germany (in former times gross national product and/or BSP).

The economic growth is legally embodied in Germany due to its accepted importance as a basic condition in stability and growth law (StWG), even if it is badly forcable.

There are differences in the computation of the economic growth in different regions, why the values cannot be compared internationally problem-free with one another.

Variants

Material and nominal economic growth

One can differentiate between material and nominal economic growth. In the nominal economic growth growth is defined as monetary change GROS DOMESTIC PRODUCT and/or the gross national income. On the other hand with the material economic growth the price increase is out-counted. After this concept the actual material increase in output of the national economy is measured. The material approach is thus more meaningful.

Material growth and price index

With the determination of "“material"” growth rates from the directly measured growth of the gross domestic product the change rate of the average price level, the change rate, is taken off from general price index. Growth is to reflect not rising prices, but only the growth of "“material"” production. Thus statistically proven material growth depends on it, like the average price of the gross domestic product or the private consumption, if one liked to use this price index for the computation of material growth, is also computed. A special difficulty is present with quality changes. Does a rising price reflect only a pure price Then this price increase may not appear as "“growth"”. Or does the price increase reflect a quality Then it is actually no price increase, but growth. The Federal Statistical Office always considered quality changes with the determination of the change of the price indices. But in the meantime this is to take place by means of the so-called hedonische determination of the prices better. In the USA and Great Britain with it one began and is in the meantime internationally usual. At least in the USA so the growth numbers are more highly than with the past computation.

Intensive and extensive economic growth

A further distinction possibility is after intensive and extensive growth. Of extensive growth one speaks, if it is to due to the use of more resources, about more workers. With the Soviet Union for example it was maintained that its growth was to be attributed primarily to the fact that ever more raw materials was used, and thereby also ever more could be only produced. The productivity could be increased against it much less.

Intensive growth is present only if the Pro-Kopf-Einkommen rises.

Quantitative and qualitative growth

The economic growth does not frequently only become as measure for the growth of the restaurant achievement, but also as measure for the growth of the well-being being issued of a society used, is however only conditionally suitable for it. For example the conversion of Pharma enterprise and so perhaps also the restaurant achievement rises with an epidemic disease, however many humans are in so a case more badly, not better. For this reason there is the distinction quantitative growth and qualitative growth.

Development models

Major item: Growth theory

The growth theory brought numerous models out to the economic growth. So e.g.

• Harrod Domar model (1942) (Keynesiani development model)
• Solow Swan model (1956) (neoclassical development model)
• Ramsey Cass Koopmans model (neoclassical)
• Endogenous development models (in the middle of the 1980er years)

Borders of growth

Among other things the club OF Rome contradicted the possibility of an eternal growth and referred to the report of Dennis Meadows over the "“borders of growth"”. The scarceness of raw materials and natural resources were called like clean air and clean water as obstacles for eternal growth. In different calculated scenarios dramatic developments were predicted for the time around the year 2030. It concerned with these computations according to own data not around prognoses, but the attempt to examine the complex conditions for human managing and to represent possible developments of the future.

The most drastic scenarios did not occur so far in the feared extent. Most clearly perceptibly probably is the global heating up, which is contributed after present conditions of the knowledge considerably due to the increasing carbon dioxide content of the atmosphere by human influence - however considered by the authors of the study with the production of the scenarios is not even.

In two further publications, "“the new borders of the growth"” of 1992 and "“limit ton of Growth: The 30-Year-Update"” of 2004 calculated the authors further scenarios with updated data. In the recent publication the concept of the ecological foot casting as well as the conception of excess and collapse particularly plays ("“and collapse overshoot "“) a large role. Afterwards the earth rules in a condition of the overstressing, that for a long time to at present keep upright can and also with consistently introduced environmental standards depending upon scenario between 2040 and at the latest not 2100 to not controllable decreases at production, life expectancy, prosperity and total population will probably lead. In order to prevent this scenario the concept of the lasting growth cancelling was developed, which suggests concrete measures around a collapse to avoid.

Critics club of the OF Rome refer themselves however to it that prosperity gives humans the possibility,

• higher standards and controls within ranges such as environmental protection, nature protection, to be able to carry etc. out and
• to react better to natural catastrophes (naturally caused inundations, climatic changes, harvest failures etc.),

so that negative developments could be adjusted.

Knowledge company as possible growth engine

In restaurant history one speaks of a serious paging, which one compares with the neolithischen revolution (from the hunter and collecting tank company to the agrarian company) and the industriellen revolution.

By the change to the service company there are post office postindustriellen with many humans doubts whether growth rates as in 20. On a long-term basis are possible for century. Growth is only since the emergence of the industrial company a clearly noticeable phenomenon. In the agrarian company growth was still hardly noticeable.

Long-term growth is primarily according to a theory because of the rationalization and/or technical progress. The technical progress plays however with services and knowledge production according to growth critics not as a large role as in the industry.

On the other side the knowledge company seems to make possible also progress with services and knowledge production - ever more information and achievements can be called up, used and increased ever faster. That affects partly also production processes, if new markets are ever faster satisfied. If it took still 50 years to the fixed net telephone from the Luxusartikel to the standard in most households was promoted, that created GSM mobile phone something similar in 10 years. Therefore the increasing speed of the technological progress seems to make also increasing growth possible, up to a phenomenon on behalf of technological singularity.

On the other hand high growth of knowledge, production and services does not have to settle necessarily in high economic growth, since new markets can often be served by very few humans, old markets of the rationalization to be subject, and appropriate progress with relatively constant conversions to therefore accompany can.

Growth and interest

The golden rule of the accumulation means that the gros domestic product growth rate should be equal the interest charges of the factor of production capital, thus equal the profit rate or equal (long-term) the interest rate. The difference between the rate of the economic growth and the dominant short term or long-term interest rate for different countries is represented in the illustrations. Therefore the interest rates lay rather too low, starting from the 80's rather too highly until the end of the 70's.

Articles in category "Economic growth"

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