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Yes, there are sustainable factors to economic growth, but that is not where the majority of it comes from, and we (the part of the world where some percentage
by j-pb 5y ago
Yes, there are sustainable factors to economic growth, but that is not where the majority of it comes from, and we (the part of the world where some percentage of the population can invest into stock) have hit the point of too much growth a long time ago.
There is an entire non-profit dedicated to calculating the resource consumption of different countries, based on re-growable biological resources: https://www.footprintnetwork.org/ https://www.footprintnetwork.org/
The entire western world is essentially consuming 2-10x as much per person as the planet can provide for that person. That consumption needs to come at the expense of somebody else, in a zero-sum game.
I'm not saying that technology has hit that hard limit per se, but many technologies are at points of diminishing returns where further advances are possible, but so expensive that they don't increase efficiency. E.g. Combustion engine
efficiency, Solar Panel efficiency (price is still
going down though luckily), moores law (at least in terms of clock speed, and per transistor costs die to node shrinking), crop growth rate.
The things you listed are great, but they have not been the driving factor behind growth.
Look around, does that look like a planet that got the way it is from boring sustainable
growth?
Even the Habor process, has resulted in massive nitrate polution, algea blooms, and reduced biodiversity.
You're not gonna get back from consuming 4x too much, from a few percent here and there.
What I'm saying is that our current notion of economic growth and the idea that with a one time investment, you get an asymptotically infinite and indefinite return on said investment, is unsustainable and explotiative. And that we need to apply different metrics to success, than blindly aiming at growth. E.g. biodiversity, individual free time, children above the poverty line.
A more sustainable model for example for retirement saving is a PAYGO system, like germany has.
Everybody receives their fair share from the resources available each year, and you don't need to worry about some burst bubble, or crash, wiping out your lives savings.