Subtitles
Rise CommunityHello everyone and welcome to this podcast, produced by the Rise community team.
On today’s agenda, l am going to tell you about the foundation and the main indicator of macroeconomic performance, scaling estimated success of a country compared to international or local market, and it is also connected to increase in country’s output and measured by real GDP- Economic growth
Before we dive into this really interesting topic, you might be curious, what is Real GDP.
Well, Real GDP is the total value of all the goods and services a country produces in a year, but adjusted for changes in prices. That means it shows how much the economy is really growing, without being tricked by inflation ( if you don’t know, inflation happens when prices go up). So, if a country’s real GDP goes up, it means people are actually making and doing more—not just paying more for the same things.
Basically, Economic growth reflects the stability and development of a country, measuring the amount of output and income over time. Understanding whether economic growth is positive or negative will assist you to evaluate the country’s performance, as if economic growth is positive, it demonstrates gradual increase in sales, goods or services export, business activity and welfare of people. While on the other side, negative eonomic growth will demonstrate the opposite effect
So.. why do you personally need to know about economic growth?
First of all, it influences job opportunities – When the economy is growing, companies have more money to hire people, and whether you want to be a teacher, a game designer, a doctor, an astronaut, or whoever else you want to be. But if the economy isn’t growing, businesses may stop hiring or even fire people to decrease spendings or increase survival rate. Understanding economic growth helps you see how this works, so you’re not surprised when it affects your future job and opportunity for future financial stability
Secondly, it affects public services. If the economy is to grow, more people are working, earning, and spending money. That means more tax money, which can be used by the government to fix your school, buy new books, build a better hospital, etc But if the economy shrinks, the government has less money—and may need to cut back on those services. So, the country is not developing and stays on the same ranking, or begins to have regression or deflation(negative inflation).
Thirdly, It impacts the environment –Economic growth helps to understand more about a country's situation to make and buy more things. But sometimes rapid economic growth can signal about making too much, too fast an amount of output in one year, which can hurt the planet. Factories may pollute the air and rivers, forests may get cut down, animals may lose their homes, and your health is also affected.
These are 3 main reasons for you to spend time understanding economic growth. There are various other reasons for you to increase your motivation, however l chose exactly them, in order to familiarise the impact of economic growth on your life.
This is it for now. Thank you for listening to this episode and hope to see you on the next one, stay curious and patient towards new podcasts and see you later.