Negative impacts of economic growthCreative DestructionGenerally, economic growth is good for the welfare of an economy. However, as Acemoglu (2009) notes, it tends to create both winners and losers. Schumpeter (1942) also coined the term 'creative destruction' which highlights how the progress brought on by economic growth could lead to a destruction of an old economic structure, in the process of creating a new one. According to Cox and Alm (2008), this implies that a society cannot reap the benefits of creative destruction without acknowledging that there will be some individuals who will end up being worse off. Acemoglu (2009, p. 8) states that "productive relationships, firms and sometimes individual livelihoods will be destroyed by the process of economic growth, because growth is brought about by the introduction of new technologies and creation of new firms", and these replace firms and technologies currently in existence. Economic growth also leads to a shift in the structure of production, with a move from agricultural and manufacturing to services. For instance, in the United States, at the start of the nineteenth century, around 90% of the population was engaged in agriculture. However, in the second half of the nineteenth century, there was a considerable decline in the percentage of employment in agriculture, and an increase in both manufacturing and services to over 20% of employment. Over the years, both the shares of employment in agriculture and manufacturing have experienced a decline, while over 70% of the current U.S. population now work in service industries. Figure 3 below illustrates this pattern.

Another effect of this process of 'creative destruction' is the creation of natural social tension. Because widespread structural transformations often accompany the growth and development of an economy, some relationships which may have been previously established could be destroyed, again creating more winners and losers (Acemoglu, 2009).

Health ChallengesAs earlier highlighted, there are newer health challenges arising with increases in economic growth. Frenk (2004) points out that health systems currently face complex challenges due to new pressures such as ageing populations, an increase in the occurrence of chronic illnesses, and an intensive use of health technologies which, while essential, are also expensive. Bloom and Canning (2008, p. iv) further note that the gains which arise due to economic growth may possibly be outweighed by the impact increased survival rates have on population growth, "until a fertility transition occurs". However, Bloom and Canning (2008) also point out that this can be addressed by, among other things, carrying out low cost health interventions that have large-scale effects on the health of the population and placing a higher priority on dealing with diseases which are 'neglected' but widespread, i.e. those that while having low mortality rates, have significant effects on productivity. Furthermore, with increased access to information, campaigns on relatively low cost ways to enhance the health of the population such as eating the right kinds of food in the right portions can minimise the effect of over-eating, or eating large quantities of food with low nutritional value. Examples of such include the five a day campaign taking place in various developed countries such as the United Kingdom and the United States, which involves eating recommended portions of fruits and vegetables daily (Briggs, 2014; NHS Choices, 2014). Briggs (2014, p. 1) states that evidence from studies shows that an increasing the consumption of fruit and vegetables "is associated with a lower risk of all-cause mortality, particularly cardiovascular mortality".

Increase in Income InequalityAn increase in income inequality is another possible effect of economic growth. According to Barro and Sala-i-Martin (2004), there has been an increase in the dispersion of income distribution for a number of countries from the period 1970 to 2000, which as earlier noted, was a period with increased economic growth. They cite the example of China and some other large countries which have experienced a rise in income inequality. Weil (2013) also notes that over a 188-year period from 1820 to 2008, the gap between the rich and the poor has widened considerably. In 1820, Weil notes that the income per capita of the richest part of the world was three times that of the poorest part of the world. However, in 2008, this income per capita ratio increased to seventeen to one. The experience of South Africa also illustrates this on a country level. As Acemoglu (2009) observes, based on data available from the start of the twentieth century till the collapse of apartheid, there was a considerable increase in GDP per capita in South Africa. However, black South Africans, who comprised the majority of South Africa's population, actually experienced a fall in real wages. Experiences such as these could be one of the reasons why some sections of society tend to support institutions and policies which do not necessarily encourage growth.

Income inequality is a major issue because it leads to a number of other adverse effects. These include economic inefficiency, undermining of social stability and solidarity and its unfairness to some sections of the society in general (Todaro and Smith, 2011). As Todaro and Smith observe, as income inequality increases, the fraction of a population that can qualify for some form of credit reduces. When low income individuals are unable to borrow money, they may also be unable to afford education for their children, start businesses, and save, thus consequently leading to a lower overall rate of saving in the society. High inequality also encourages rent seeking behaviour, where the rich focus on encouraging outcomes which benefit them and may also divert resources from productive purposes which could further enhance growth to other less productive purposes. Nevertheless, increased investments in public health, education and other relevant infrastructure could help reduce this adverse effect of income inequality.

Increased PollutionIncreased pollution has also been cited as a downside of economic growth. The World Bank (2014) states that while many people have benefited from an improved quality of life due to economic growth, these gains have not been even, and economic growth usually has negative environmental consequences. According to The World Bank (2014), the rate at which natural resources, i.e. land, water and air, are being degraded in many countries is 'alarming'. The health of many is also threatened by factors such as air pollution, waterborne disease and exposure to harmful chemicals. This is particularly so in developing countries due to their high levels of dependence on natural resources, a limited capacity for adaptation to the changing climate, and limited resources to remedy the effects of these changes. Furthermore, with changes in the climate globally, there is also an increased risk of natural disasters and other environmental risks (The World Bank, 2014).

However, there has been conflicting evidence regarding the relationship between economic growth and various environmental indicators. In a study of economic growth and the environment, using various indicators including concentrations of urban air pollution and various contaminants of river basins, Grossman and Krueger (1994) found no evidence that an increase in economic growth leads to a deterioration of environmental quality. They observed that while there was an initial period of deterioration, this was subsequently followed by an improvement phase, thus negating the deterioration effect. Nevertheless, in a study of the cost of pollution in China, The World Bank (2007a) states that although strong economic growth in China over the last quarter of the century has had positive impacts on the environment due to improved resource utilisation, increased energy efficiency, pollution control efforts, technologies which are cleaner and more energy efficient, and implementation of policies for environmental pollution control, new challenges have also been created. For instance, energy consumption increased by 70% from 2000 to 2005, coal consumption increased by 75%, air pollution emissions have either gone up or remained the same, and surface water quality deteriorated from 2000 to 2005. This has led to not just increased pollution, but also a depletion of resources in general.

In a study of the relationship between energy consumption and economic growth using time series evidence from Asian developing countries, Asafu-Adjaye (2000) reported that high levels of economic growth lead to higher energy demand levels. However, he notes that in order for an increase in the demand for energy to not have a negative effect on economic growth, then energy conservation policies which are focused on reducing energy usage need to discover methods of reducing consumer demand. Asafu-Adjaye (2000) points out that this can be done through a suitable mix of taxes on energy, subsidies, as well as making efforts to encourage industries to adopt technologies which minimise pollution.