Author Topic: Obsession with Economic growth  (Read 1211 times)

Leisured

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Obsession with Economic growth
« on: February 11, 2020, 05:20:32 AM »
Good article in New Yorker magazine on the obsession with growth in GDP.

https://www.newyorker.com/magazine/2020/02/10/can-we-have-prosperity-without-growth




js82

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Re: Obsession with Economic growth
« Reply #1 on: February 11, 2020, 05:33:25 AM »
Good article in New Yorker magazine on the obsession with growth in GDP.

https://www.newyorker.com/magazine/2020/02/10/can-we-have-prosperity-without-growth

Good article.

I think increasing prosperity without GDP growth *IS* possible - and in fact is likely to occur at some point in the future.  The basic story is straightforward: Aging demographics/slowing population growth slow or stop demand growth for certain goods.  Meanwhile, technology continues to improve productivity/the efficiency of production - resulting in it taking fewer resources to produce certain goods.

At the heart of this is that GDP is a flawed measure - it measures the monetary value, rather than the true utility of goods and services produced.  While each private jet built/sold is a big number in terms of GDP, it doesn't have the same contribution to a broad-based prosperity(and the same is true of many other luxury goods). 

Conversely, if technology continues to improve the goods that are available to the average citizen such that existing goods become cheaper or better in quality at the same price, it most certainly *IS* possible to have prosperity/improvement in quality of life without massive GDP growth.


A couple examples that illustrate this:
-Computers/Smartphones/technology in general: Things exist that didn't, and things that are dirt-cheap/outdated today are still light years ahead of things 10 or 20 years ago, even when adjusted for inflation
-Air travel: https://www.theatlantic.com/business/archive/2013/02/how-airline-ticket-prices-fell-50-in-30-years-and-why-nobody-noticed/273506/

In almost all cases, the underlying requirement is technological - an improvement in the efficiency of manufacturing, or the quality/capability of goods produced.

LennStar

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Re: Obsession with Economic growth
« Reply #2 on: February 16, 2020, 10:29:27 AM »
The best you can do for the GDP is to steal a tank, go havoc and destroy some buildings, have the military shoot your tank into pieces, get cought and sentenced to lifelong prison.
Every point of this is a big spending aka GDP growth.

Tells you all you need to know about that number.

 

Wow, a phone plan for fifteen bucks!