One significant negative effect of economic growth is environmental degradation and resource depletion. As an economy expands, the demand for energy, raw materials, and land typically increases, often leading to deforestation, loss of biodiversity, and higher levels of pollution. This "growth at any cost" mentality can result in long-term damage to ecosystems that are vital for human survival. Furthermore, rapid growth can lead to increased income inequality; while the overall wealth of a nation might rise, it is often concentrated in the hands of a few, leaving lower-income populations with a higher cost of living without a proportional increase in wages. This imbalance can cause social tension and diminish the overall quality of life despite the glowing macroeconomic figures.