Assess whether the consequences of economic growth for an economy are always positive. [12]

Economic growth is generally seen as a positive thing for an economy, as it can lead to increased wealth and living standards. However, the consequences of economic growth are not always positive. Here are some potential negative consequences:

1. Inequality: Economic growth can lead to increased inequality if the benefits of growth are not distributed evenly. This can lead to social unrest and political instability.

2. Environmental degradation: Economic growth can lead to increased consumption of natural resources and increased pollution, which can harm the environment and lead to health problems.

3. Over-reliance on growth: If an economy becomes too reliant on continuous growth, it can become vulnerable to economic shocks and recessions.

4. Inflation: Rapid economic growth can lead to inflation, which can erode purchasing power and lead to economic instability.

5. Unsustainable growth: If economic growth is based on unsustainable practices, such as overuse of natural resources or excessive borrowing, it can lead to economic problems in the future.

In conclusion, while economic growth can bring many benefits, it is not always positive for an economy. It is important for policymakers to manage economic growth in a way that maximizes its benefits and minimizes its potential negative consequences.