In today's tough economic science differ intensive and extensive type of economic growth.Let's try to understand the features of these options.
intensive production growth
intensive growth is usually characterized by a significant increase in the scale of production.It is important that this increase is based on the widespread introduction in the production of qualitatively new and more efficient production factors.The increase in the scale of production is usually provided through the use of various advanced technologies, advances in science, more modern equipment, reduce the expenditure of the production planned retraining of workers, and so on.In fact, thanks to these factors and objectively expected increase productivity, resource and product quality.
extensive growth of production
This type is historically older than the previous one.In particular, extensive growth is characteristic of primitive man.It is associated primarily with the expansion of production, increase in the use of resources in material production: the involvement of additional manpower, natural resources, expansion of arable land.However, what is important is not to optimize operation, unlike the previous one.In addition, this type should include an increase in investment.The technological base at the same time does not change.Extensive growth at certain stages of development is quite advanced.For example, cattle breeding companies.However, sooner or later it leads to severe economic crises.
today's society and the extensive growth
In today's world, many societies, despite a well-developed technological base, go through extensive.For example, extensive way can often quickly solve certain problems.For example, engaging in the production of more labor leads to a reduction in unemployment and employment.However, this is not always accompanied by a real increase in production volumes, which leads to lower incomes and increasing social tensions.Extensive type allows you to quickly master the natural resources.However, due to the fact that this is happening is irrational use of resources, it happens very rapid depletion of sources, mines, minerals, arable soil layer and so on.Ultimately, the problem of development of natural resources leads to the question of improving technology and production approaches in the use of nonrenewable resources.A major problem is the extensive growth and stagnation, in which even a substantial quantitative increase of products not accompanied by technical and economic progress.This factor has led to the Great Depression of 1929-1932 in the US., And contributed to "stagnant" trend in the Soviet state.
