University Economics: China's Economic Growth and Development

This economics assignment presents a case study on the Chinese economy, focusing on the arguments for and against rapid Gross Domestic Product (GDP) growth. The essay begins by defining GDP and referencing recent reports on China's economic performance. It then explores arguments for slowing down rapid economic growth, such as the need for sustainable development, the environmental impact of pollution, and the risks associated with high government debt. Counterarguments in favor of increasing GDP are also presented, emphasizing the government's role in controlling inflation, stabilizing currency, and ensuring full employment. The essay concludes by arguing that an unhealthy fixation on GDP growth may not meet the long-term needs of the economy, particularly concerning environmental pollution. The assignment references relevant economic theories and provides a critical analysis of the presented arguments.

Running head: ECONOMICS 1
Economics
Professor’s Name
Institution Affiliation
Date

ECONOMICS 2
ECONOMICS ASSIGNMENT SOLUTIONS
Introduction
Gross Domestic Product is a measure of value of final goods and services produced by an
economy in a period of time usually yearly or quarterly (Galbraith, 2017). The international
monetary fund recently reported that China’s economy is performing strongly. It projected that
the country’s economy is expected to grow by 6.6% in 2018. However, China’s economic
growth has been criticized by some analysts and institutions on the grounds that it is fixed. This
paper discusses the Chinese economy case study. We present the arguments for slowing down
the rapid GDP growth and the arguments in favor of increasing the country’s GDP. In addition, I
present my opinion concerning the argument to reduce economic growth.
Arguments for slowing down rapid economic growth
The author argues that therefore is actually no need for unsustainable growth in Gross
Domestic Product. The country should not only be focused on growing its value of final goods
produced even when the said goods do not add value to the economy in the long run. Increased
cost of pollution resulting from unsustainable economic growth is unfavorable for the economy
and hence it is rational to slow down economic growth resulting from such.
Unsustainable economic growth characterized by high government spending using loaned
funds increases the country’s levels of debt (Miller & Benjamin, 2017). High government debt
exposes the country to financial crisis. Similar scenarios occurred in the United States after the
Second World War and in recently in Greece.
To what extent do you agree with these arguments?

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I totally agree with the arguments presented in this case study. It is advisable for China to
invest in projects that yield sustainable future returns. Loaned funds for instance are repaid with
interest to the creditors and hence it is much appropriate when they are paid through funds
generated from the same projects. Industries emit carbon material in to the atmosphere which
pollute the environment and make it unconducive for human living (Baer & Singer, 2016).
Global warming has become a matter of international interest which every participant should
contribute towards reducing it to create a better world for the generations to come.
Explain the counter arguments in favor of increasing the level of a country's GDP
The government is responsible for controlling the level of inflation, stabilizing local
currency and ensuring full employment is achieved (Mankiw, 2014). During deflation, the
government raises its capital expenditure which increases the level of GDP in the country. , It is
also appropriate to increase GDP by increasing expenditure on investments that have long term
benefits to the economy. A rise in GDP that accounts for costs of environmental damage is
desirable for the economy and hence should be encouraged.
Conclusion
GDP as a measure of economic growth accounts for the quantity of growth but not fails
to account for quality of economic growth. Obsession towards higher GDP by Chinese
government might fail to meet the long run needs of the economy. Normally, overproduction
increases the emission of greenhouse gases in to the atmosphere which lead to environmental
pollution. Therefore, china’s development could be more significant if unhealthy fixation on rise
of GDP is stopped.

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References
Baer, H., & Singer, M. (2016). Global warming and the political ecology of health: Emerging crises
and systemic solutions. Routledge.
Galbraith, J. K. (2017). Economics in perspective: A critical history. Princeton University Press.
Mankiw, N. G. (2014). Principles of macroeconomics. Cengage Learning.
Miller, R. L., & Benjamin, D. K. (2017). Economics of macro issues. Pearson.