You’ve likely heard the buzz words ‘economic growth’ in relation to inflation in the news. But, you’re not quite sure what is means and whether it’s the same as economic development. So, what exactly is the difference between economic growth and economic development in Miami-Dade? Here’s a quick overview.
What Is Economic Growth?
Economic growth is defined as an increase in economic goods and services production over a period of time. According to Investopedia, “In simplest terms, economic growth refers to an increase in aggregate production in an economy. Often, but not necessarily, aggregate gains in production correlate with increased average marginal productivity. That leads to an increase in incomes, inspiring consumers to open up their wallets and buy more, which means a higher material quality of life or standard of living.”
What Is Economic Development?
Economic development actually includes economic growth. Additionally, economic development also includes changes in areas such as living standards, improved healthcare, greater economic diversification, quality infrastructure, and improved educational standards. Generally, it is a way to understand elements of improved quality of life.
The goal of looking at economic development is to gain a more comprehensive understanding of the quality of living in an area rather than just looking at numbers. Theoretically, an increase in economic growth should lead to improved economic development. However, that is not always the case.
Several circumstances can lead to increased economic growth without economic development. Some of these circumstances include high amounts of military spending, poor city planning, corruption, and environmental problems that damage the quality of life.
There are quite a few ways to measure economic development, including a human development index, or HDI. This HDI includes data on life expectancy, education, and income to quantify quality of life and wellbeing.
To Learn More About Economic Growth and Development in Miami-Dade, Contact Us!
South Miami-Dade has experienced tremendous economic growth AND economic development and only continues to improve in both.This area has a lot to offer, and you can be part of it all. To learn more, contact us today!