Economic growth

Lesson Objective:
To understand elements of
the global and national
economy
Success Criteria
To know how a countries
economy is measured
and compared
To explain some UK trends
in income and wealth
To assess how much
poverty there is
To know how a countries economy is
measured and compared

Discuss: What is the difference between ecomomic
growth and economic development
Economic growth may be one aspect of economic
development but is not the same
Economic growth:
A measure of the value of output of goods and services
within a time period e

Economic Development:
A measure of the welfare of humans in a society
To know how a countries economy is
measured and compared

Economic Growth
Using measures of economic performance in terms of the value of
income, expenditure and output
GDP Gross Domestic Product
The value of output produced within a country during a time period
GNP Gross National Product
The value of output produced within a country plus net property income
from abroad
GDP/GNP per head/per capita
Takes account of the size of the population
Real GDP/GNP
Accounts for differences in price levels in different countries
What problems are there with this
measurements?
Using measures of economic
growth can give distorted
pictures of the level of
income in a country the
income distribution is not
taken into account.
A small proportion of the
population can own a large
amount of the wealth in a
country. The level of human
welfare for the majority
could therefore be very
limited.
But this could be just around the
corner!
Copyright: chinagrove, http://www.sxc.hu
This might be a common
picture
Copyright: unseenob, http://www.sxc.hu

What are the problems with
measuring economic growth?
High economic growth fuelled through capital spending can hide a number of
underlying economic problems how is the income and wealth distributed?
Who is doing the spending and will it trickle down to the poor?
Task: In your books explain what the issues are with measuring economic growth
do they capture the reality?
Shopping Mall in Saudi Arabia
Copyright : Christo Pacheco, http://www.sxc.hu
Dubai Skyline
Copyright: zchizzerz, http://www.sxc.hu

Measuring Economic development?
Discuss: How might we measure the welfare of humans
in a society?
Political freedoms?
Sustenance?
Sustainable development?
Self esteem?
Proportion of activity in different sectors of the
economy:
Primary
Secondary
Tertiary (Service)
Challenge question: which sector do most people in the
UK work in? What does this indicate?



To explain some UK trends in
inequality and wealth

INCOME
Read through the information on Income. Match up the
following sentences to the most appropriate paragraph
1. Child poverty has increased because of a rise in single
parent families
2. The rich just got richer and the poor poorer
3. The elderly had better pensions and planned for their
retirements
4. Everything stayed roughly the same
Now using the information above and on the sheet. In
your own words summarise the trends in income over
the last 30 years
To explain some UK trends in
inequality and wealth

WEALTH
Using the table and additional information.
List 3 trends in wealth over the last 30 year?
Make a sentence that includes the
relationship between wealth and retirement?
How is wealth distributed
Absolute trends: Since WWII wealth of
British population has increased. Indicators
of this are more people
own their own homes,
can afford luxuries like cars and foreign
holidays,
have pensions
own shares
How is wealth distributed
Relative trends: Wealth is more unevenly distributed
The older are wealthier (why)
Higher classes are richer (why)
Men are more likely to be richer (why)
In the UK those of ethnic minorities are more likely to not be wealthy
however the richest person in Britain from 2005 2012 is Indian steel magnet
- Mittal
In 1989 Times first 200 rich list. At the top was the Queen. 66% of these had
inherited their money. Today 80% are self made entrepreneurs. The Queen is
no longer in the top 200.
To get into the Rich list you needed about 30, million (65 million in todays
money) Last year you needed more than 450 million to reach top 200
Self made millionaires variety of backgrounds.
Wealth can be illusory in the 21
st
century many people carry a huge debt
burden which has brought many people and now countries into crisis
Task: using the above explain wealth distribution has changed over the last 30
years
To assess how much poverty there is

Levels of poverty
Absolute poverty
Relative poverty
Inequality
Progress what
constitutes progress?



Our definitions of progress may be highly subjective. What
has progress brought to native tribes people across the
globe?
Title: Navajos refuse casino riches. Copyright: Stock.Xchng
Poverty UK
What does poverty in the UK look like?

http://www.youtube.com/watch?v=9a0WJXVIuqQ&
feature=related
After watching the clip add some ideas to how
you would describe poverty in the UK like this?

Challenge: Why would this not appear as poverty to
everyone?
Whats the difference?
Absolute poverty living without the basic essentials eg shelter, clothing,
adequate food. Poverty can be measured objectively.
Relative Poverty living without material goods that the majority of the
population of that country can afford. Relative poverty is subjective. It is
based on peoples judgements which can change.
Peter Townsends definition:"Individuals, families and groups in the
population can be said to be in poverty when they lack the resources to
obtain the type of diet, participate in the activities and have the living
conditions and the amenities which are customary, or at least widely
encouraged or approved in the societies to which they belong. Their
resources are so seriously below those commanded by the average family
that they are in effect excluded from the ordinary living patterns, customs,
and activities
To assess how much poverty there is
Read through the news paper article about Child
Poverty in the UK:
To what extent would you argue that poverty
exists in the UK
How do you feel by the figures? Why?
What would you want to see in order to say that
progress has been made?
Example question/answer.
Qu 1 on the paper is compulsory. The question will always give you some
guidance on how to answer it
The gap between the life-chance of rich and poor in the UK seem to be as big
as ever.
For what
Social
Economic
Moral
Reasons should we try to close the gap and how might we do it
Go through source A and underline and number any
examples/evidence/reasons from the text that might support different
elements of the question

How might you plan this answer? What examples from outside the text could
you use?
Top part of mark scheme
Level 1 (33 . 40 marks)
a very good response showing keen awareness of the issues
surrounding the rich and poor and the reasons we should
close the gap and how we might do it. Show the figures;
text and task are understood [AO1]
well-chosen examples are given of ways we might try to
close the gap and why, that are different to those in the
text and that support the argument and lead to a
convincing conclusion [AO2]
there is critical analysis of what it might mean to rich or
poor and opinions are weighed [AO3]
communication is clear, accurate, and the argument is well
structured [AO4].
Model answer
Read through your model answer
What does the student do well?
Is there any thing they could improve
now write a plan for the answer is it
different to your original.

Write down 3 tips that might help you answer
this style of question.