Economic growth is a major field of study, due to the significant impact it has on the society in general, as well as the various units that make up the society. This essay has examined both the positive and negative effects of economic growth on society. Some of the positive impacts include an increase in wealth/reduction in poverty, improved standards of living, health, education and infrastructure and technology. It was also noted that in a number of cases, the causality ran both ways. For instance, while economic growth can have positive effects on health, education and infrastructure, these in turn also have positive effects on economic growth. The negative effects discussed on the other hand include creative destruction, natural social tension, health challenges, increase in income inequality, increased pollution and a depletion of natural resources. Examples from various countries have been used to illustrate these effects. In addition, various suggestions and recommendations were highlighted on how to counter some of the negative effects economic growth can have. While these may not totally eliminate these negative impacts, they can nevertheless go a long way in minimising the negative effects and enhancing the positive influence economic growth can have.
This study will be directly addressed to the Palestinian policy makers, mainly the Ministry of Finance. This study will help the policy makers in the Ministry of Finance to take into their consideration the effect of the government expenditures on the economic growth when they formulate and create the Palestinian Authority budget. This will make the budget more effective and the Palestinian resources will be allocated in a more efficient and productive way. This study will also be very helpful to the Ministry of Planning in setting up the social, economical, financial and political plans that would enhance the overall performance of the country in the previously mentioned fields. Since there is a direct relationship between GDP and unemployment rate, this fiscal policy instrument will be very helpful for Ministry of Labor in preparing its annual strategies in decreasing the unemployment rates. In addition, this study will benefit the Ministry of National Economy in choosing the projects that should be given licenses, in particular, the ones that enhance the economy growth the most. In addition, this will help the individuals as being part of the labor force to determine how and where to invest their money so as to help in achieving better GDP growth.