key term - 低経済成長 (Teikeizai Seichō)

Definition

低経済成長, or 'low economic growth', refers to a prolonged period of minimal increase in economic output or GDP, which often signifies underlying challenges within an economy. This concept is particularly important as it relates to various societal and political issues, such as unemployment, social inequality, and public dissatisfaction. When an economy experiences low growth, it can lead to significant strain on social services and government resources, ultimately resulting in political instability and societal unrest.

5 Must Know Facts For Your Next Test

1. 低経済成長 often results in higher unemployment rates as businesses may not hire new employees or may reduce their workforce to cut costs.
2. Prolonged low economic growth can increase social inequality, as wealth becomes concentrated among those who can adapt to economic challenges, leaving vulnerable populations behind.
3. Government revenues typically decline during periods of 低経済成長, making it difficult for authorities to fund public services such as education and healthcare.
4. This term is frequently associated with economic stagnation, where growth rates are below the potential output of the economy, leading to a sense of frustration among citizens.
5. In some cases, low economic growth can trigger political instability, as citizens may protest against governments that fail to provide sufficient economic opportunities or social welfare.

Review Questions

• How does 低経済成長 impact employment rates in society?
  • 低経済成長 directly influences employment rates by causing businesses to hesitate in hiring new employees or even laying off existing workers. During times of low growth, companies often focus on reducing operational costs due to declining revenues. This leads to higher unemployment rates, creating a cycle where job seekers find it increasingly challenging to secure employment, further aggravating the economic situation.
• Discuss the relationship between 低経済成長 and social inequality within a society.
  • The relationship between 低経済成長 and social inequality is significant, as low economic growth tends to widen the gap between different socioeconomic groups. Wealth often becomes concentrated among those who are more adaptable or have access to better resources. Meanwhile, marginalized communities may struggle even more during periods of low growth, resulting in heightened disparities in access to education, healthcare, and other essential services.
• Evaluate how prolonged 低経済成長 might lead to political instability within a country.
  • Prolonged 低経済成長 can lead to political instability due to rising public dissatisfaction with government policies and economic conditions. As citizens face increased unemployment and reduced access to services, they may feel frustrated with their leaders' inability to address these issues effectively. This discontent can manifest in protests or movements aimed at demanding change, leading to potential upheaval and challenges for the ruling government in maintaining control and legitimacy.

Related terms

GDP (Gross Domestic Product): The total monetary value of all finished goods and services produced within a country's borders in a specific time period, often used as an indicator of economic health.

失業率 (Shitsugyōritsu): The unemployment rate, which measures the percentage of the labor force that is unemployed and actively seeking employment, often rising during periods of low economic growth.

インフレーション (Infurēshon): Inflation, the rate at which the general level of prices for goods and services rises, eroding purchasing power; its relationship with low economic growth can be complex.