Tuesday, October 6, 2015

Can Economic Growth Last?

World economic growth for the previous century, expressed in constant 1990 dollars. For the first half of the century, the economy tracked the 2.9% energy growth rate very well, but has since increased to a 5% growth rate, outstripping the energy growth rate.

Do the Math: " I have used physical analysis to argue that sustained economic growth in the long term is fantastical. Maybe for some, this is stating the obvious. After all, Adam Smith imagined a 200-year phase of economic growth followed by a steady state.  But our mentality is currently centered on growth. Our economic systems rely on growth for investment, loans, and interest to make any sense. If we don’t deliberately put ourselves onto a steady state trajectory, we risk a complete and unchoreographed collapse of our economic institutions."

No comments: