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Economic growth doesn't need to have any anchoring in reality, it can grow as much as we want it to.

idontwantthis 3y ago
It will still be anchored in reality, it just won’t have the guaranteed bump from population increase. Growth will be slower, but will still happen due to technology and efficiency improvements. Once we set our expectations to 1% growth, there’s no reason that has to be a problem.
imtringued 3y ago
If it is not anchored in reality then you don't need growth how long until people understand that? You don't need to wait for economic growth in the opensource space. You just go ahead and download the software, use it and be happy today.
wcoenen 3y ago
Economics is fundamentally about the allocation of scarce resources. So if we are talking about how human civilization allocates scarce resources (and not about some virtual economy e.g. inside a computer game), then economic growth is very much anchored in reality.
Eddy_Viscosity2 3y ago
He's a fictional conversation [1] between an economist and physicist where they discuss this very premise: Economist: Hi Tom, I’m [ahem..cough]. I’m an economist. Physicist: Hey, that’s great. I’ve been thinking a bit about growth and want to run an idea by you. I claim that economic growth cannot continue indefinitely. Economist: [chokes on bread crumb] Did I hear you right? Did you say that growth can not continue forever? Physicist: That’s right. I think physical limits assert themselves. ... the rest in the link ... [1] https://dothemath.ucsd.edu/2012/04/economist-meets-physicist/ https://dothemath.ucsd.edu/2012/04/economist-meets-physicist...
- kmonsen 3y ago
  That article ties growth to consumption, and consumption to energy use. This does not have to be true. We could all decide to multiply every currency with 10x and nothing would change except the number and we would have 10x economic growth as measured in the currency. That is an obviously simplified example, but it is not that contrived. Modern money is not tied to energy use. Money is created out of thin air every day and that is ok.
  - Eddy_Viscosity2 3y ago
    That isn't economic growth because there is no change in the supply or demand of goods or services which underlay economic activity.
    - kmonsen 3y ago
      What is economic growth other than numbers getting larger?

It will still be anchored in reality, it just won’t have the guaranteed bump from population increase. Growth will be slower, but will still happen due to technology and efficiency improvements. Once we set our expectations to 1% growth, there’s no reason that has to be a problem.

imtringued 3y ago

If it is not anchored in reality then you don't need growth how long until people understand that? You don't need to wait for economic growth in the opensource space. You just go ahead and download the software, use it and be happy today.

wcoenen 3y ago

Economics is fundamentally about the allocation of scarce resources. So if we are talking about how human civilization allocates scarce resources (and not about some virtual economy e.g. inside a computer game), then economic growth is very much anchored in reality.

Eddy_Viscosity2 3y ago

He's a fictional conversation [1] between an economist and physicist where they discuss this very premise: Economist: Hi Tom, I’m [ahem..cough]. I’m an economist. Physicist: Hey, that’s great. I’ve been thinking a bit about growth and want to run an idea by you. I claim that economic growth cannot continue indefinitely. Economist: [chokes on bread crumb] Did I hear you right? Did you say that growth can not continue forever? Physicist: That’s right. I think physical limits assert themselves. ... the rest in the link ... [1] https://dothemath.ucsd.edu/2012/04/economist-meets-physicist/ https://dothemath.ucsd.edu/2012/04/economist-meets-physicist...

kmonsen 3y ago
That article ties growth to consumption, and consumption to energy use. This does not have to be true. We could all decide to multiply every currency with 10x and nothing would change except the number and we would have 10x economic growth as measured in the currency. That is an obviously simplified example, but it is not that contrived. Modern money is not tied to energy use. Money is created out of thin air every day and that is ok.
- Eddy_Viscosity2 3y ago
  That isn't economic growth because there is no change in the supply or demand of goods or services which underlay economic activity.
  - kmonsen 3y ago
    What is economic growth other than numbers getting larger?