Abstract

On Some Arguments in Favour of Increasing Growth Rates in a Fully Employed and Highly Developed Economy

The author discusses a number of arguments which are made to substantiate the demand for an increase of the rate of economic growth in a fully employed and highly developed economy. “Increase” (acceleration) means growth rates in excess of the rates which could be realized by voluntary (including public) savings. The article starts with brief remarks on the term “growth” and the limited usefulness of GNP figures as substitutional data for economic welfare. Then the author examines seven alleged economic reasons for an attempt to accelerate growth, of which the following are of special political interest: better future supply; moderated struggle for a changed income distribution; better capability to export; economic East-West competition; more development aid. Though it is difficult to distinct between economic and political aspects, the author comes to the conclusion that none of the examined arguments can be sufficiently supported by economic reasons in a highly industrialized and fully employed economy, which is not in a period of reconstruction. In the absence of valid economic reasons for an acceleration of growth rates under these circumstances, this aim should be supported by other, primarily political, arguments.