The principal economic cost of growth is

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Economic growth typically requires investment in capital formation, which comes at the expense of current consumption. This represents a cost of growth, as individuals and societies must give up current consumption in order to build the capital stock necessary for future production and growth. Higher interest rates and inflation can also occur as a result of growth, but these are not necessarily the principal economic costs. Higher unemployment rates are generally associated with economic stagnation rather than growth. Investment in stocks and bonds is not necessarily a cost of growth, but rather a means of financing it.

The Principal Economic Cost of Growth Is