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Economic growth inadequate measure of changes in living standards over time

In a past paper the question was 'discuss two reasons why economic growth is inadequate as a measure of changes in living standards over time.'

one of my reasons was that the amount of government spending on public services and military changes over time. For example if we were in a war there will be higher government spending on military but this will not increase living standards , but I'm guessing that it will still contribute to economic growth

Is my point valid or should I stick to what it says in the mark scheme??

Reply 1

ryanboi

Your point is valid but you will need to develop it more. Is best to come up with points that are easy to explain and easy for you to develop it. Points like Economic growth ignores distribution of incomes are easy to develop. E.g. Economic growth is increasing, this shows that the economy is operating efficiently which means that people in the economy will have a better living standard. However, this might not be the case if most benefits of the economic growth goes to the rich people. Poor people will not experienced changes in their living standard.