What Is Economic Growth?

Source: EconLog
by Pierre Lemieux

“We, including many economists, sometimes forget what is economic growth in a normative sense, that is, what we should count as ‘good’ economic growth. Economic growth does not consist in producing more of this or that good (or service). It does not even necessarily consist in producing a larger quantity of all goods. Nor does it consist in producing the largest value of goods calculated by weighing the quantities produced with any set of prices. To have any normative (moral) significance, to be evaluated as good or not good, economic growth requires more than that.” (07/14/21)