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Do we *need* economic growth? Watch

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    This may be better placed in the politics forum, but I don't know.

    Pretty basic question from someone who is interested in politics, but doesn't know much about economics:

    Do we need economic growth?
    What would happen without it, i.e. if we just stayed constant?
    Surely we cannot keep growing and growing and growing, what will happen in the long term with constant economic growth?

    Any help from budding economists?
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    I only do A2 economics, so don't take my word for it but I think we need it in order to accomodate a growing population... if more people are being born more jobs are needed and also more resources. So, economic growth reduces unemployment and increases the amount of goods available. That is why you see struggling countries have smaller economies... Also, I think it reduces inflation, because more growth ensures for stable and lower prices as more goods are available.
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    What makes people happy?
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    :lolwut:
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    (Original post by tazzik)
    This may be better placed in the politics forum, but I don't know.

    Pretty basic question from someone who is interested in politics, but doesn't know much about economics:

    Do we need economic growth?
    What would happen without it, i.e. if we just stayed constant?
    Surely we cannot keep growing and growing and growing, what will happen in the long term with constant economic growth?

    Any help from budding economists?
    If you did not have economical growth you would not have sustained technological and scientific advances. You wouldn't even get your 4% savings account at your local bank. Or even your buy 2 get 1 free offers.
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    i think the main concern as a undergrad economist. Is what do people want in life what makes people happy is more fundamental. However if you look at china it has low interest rates low devalued currency but they have crazy inflation at the moment and they need to choose between economic growth or inflation. They will obviously accept the first. I dont think we need economic growth but we definately dont need decreasing industries or deflation could be detrimental on the economy the flow of capital is very important to the level of economic growth.I dont think theres anything wrong with constant economic growth aslong as its SUSTAINABLE sorry had to do capitals but at the moment is it? the answer is definately no the rate natural resources are being used is incredible.
    Economic growth is fine aslong as everything else rises in the same context and not too much money is flooded into certain markets such as property and everything else rises in line with the growth such as productivity, wages and so fourth. You could then analyse who benefits from economic growth the last 100 years have shown few people get rich whilst many stay poor.

    My personal view is
    Economic growth creates competition which increases the quality of products available im personally not that price sensitive but i do like innovative products.
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    (Original post by tazzik)
    This may be better placed in the politics forum, but I don't know.

    Pretty basic question from someone who is interested in politics, but doesn't know much about economics:

    Do we need economic growth?
    What would happen without it, i.e. if we just stayed constant?
    Surely we cannot keep growing and growing and growing, what will happen in the long term with constant economic growth?

    Any help from budding economists?
    I have just read a book which is really interesting, The Spirit level.. It talks about inequality in society and stuff...

    I agree, we don't really need economics growth.. In fact, llook at U.S, they are polluting too much, but are not benefiting from a higher standard of living or quality of lifestyle...

    We can actually live happily and maintain our quality of lifestyle with a stable economics growth...

    I don't know, this question is quite open, and you could really write a dissertation just about it..
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    (Original post by tazzik)

    Any help from budding economists?
    ohhhh ohhh pick me pick me i LOVE economics

    Yes because without economic growth the suitability of the whole world would be at jeopardy…
    Economic growth is about meeting consumer needs, which are always changing. For example 10 years ago (not sure on the actual dates) the nokia 9310 was very poplar and in demand, whistle now people want iPhones a must better piece of technology. If we didn’t have economic growth and stayed constant as you said we would never developed as a country and never create new technological advances or medicines.

    my friends boyfrind (a very clever man indeed lol) once told me the easier way to think about economics:

    Imagine the very first bank in the world loaned £100 to a person with an interest rate of 4% a year over 2 years(not great with intrest rates lol sorry if this isnt correct the maths behind it is tho), this would mean in 2 years they would have £108. Now according to there computer (bearing in mind atm they have £0 because the man has the whole hundred) they have £108 worth of equity because they believe the man will pay it back, so they now loan another man £105 with the same interest rate meaning they would get back £113.40 now once again according to there computer (they still physically have £0 because they have loaned it out) they have the first £108 worth of equity plus £113.40 so they now have £221.40 worth of equity but In reality they have nothing… now imaging its not £100 but its £100,000 and its not a man but it’s a business and the banks don’t get there money back (downturn) we then fall into a recession because banks have lent out money they never really had based on equity they don’t have because nobody has paid them back yet...
    its madness yet its keeps going on and on and on which is why last year so many banks and business finally crumbled becuase they simply couldnt keep up with it all...

    feel free to PM me for anything esle as i know how the goverment plans to get us out of this very deep hole they dug but its long for on here LOL

    (Neg rep for answering a question great stuff...)
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    (Original post by danny111)
    What makes people happy?
    Growth figures give me an immense amount of utility.
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    (Original post by tazzik)
    1. Do we need economic growth?
    2. What would happen without it, i.e. if we just stayed constant?

    Surely we cannot keep growing and growing and growing, what will happen in the long term with constant economic growth?
    I think we basically have been growing and growing and growing in more ways than one.

    Some degree of constant economic growth is probably needed given that there is population growth (to achieve the same levels of everything else).

    Your answer to (1) will depend on what goals are important to you. For me, it is along the lines of making sure everyone is almost just as happy as everyone else. It also depends on what you define things as (I'm referring to the philosophical debates that come to mind when people mention the word "happy"). Perhaps the most definition is the definition for "we". Who are you referring to? One country by itself? Or all countries (but with exactly the same conditions so they might as well just make one massive country)? Or the globe's economic growth?
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    (Original post by yoyo462001)
    Growth figures give me an immense amount of utility.
    log(GDP) :love:
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    Stability is the better than growth.
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    First you need define what you consider to be growth.
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    (Original post by Acerbic)
    First you need define what you consider to be growth.
    I think it's safe to assume that by "economic growth", OP meant GDP growth.
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    (Original post by tazzik)
    This may be better placed in the politics forum, but I don't know.

    Pretty basic question from someone who is interested in politics, but doesn't know much about economics:

    Do we need economic growth?
    What would happen without it, i.e. if we just stayed constant?
    Surely we cannot keep growing and growing and growing, what will happen in the long term with constant economic growth?

    Any help from budding economists?
    I think the problem with having an economy which stays the same, is that every other country would be growing and becoming ever more richer and resourceful. So as a nation, we would become poorer relative to others. This is important because in life everything is measured and compared with whatever is around it. For example, just a few decades ago, black and white televisions were the popular product for consumers - partly because a more superior alternative hadn't been made avaliable yet. In a few years later, its likely that you'll no longer be content with having just a DVD player, instead you would want a Blu-ray player which is shows better quality pictures, etc. Similarly with regards to the global economy, nobody wants to be 'left behind' as others 'progress and move forward'.
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    No as long as GDP per capita still increases at an acceptable rate but since massive population fall only occurs through genocide or diseases economic growth is the only way to increase GDP per capita. Although I purpose you could try limiting birth rates and 'encourage' old people to die. Unless of course if by economic growth you meant growth in GDP(ppp) per capita which again I think will be no but is very debatable
 
 
 
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