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20 years ago, I took a macroeconomics class with a professor who has become somewhat famous in recent years. [0] I was in a strong anti-establishment, anti-cap
by debo_ 3y ago
20 years ago, I took a macroeconomics class with a professor who has become somewhat famous in recent years. [0]
I was in a strong anti-establishment, anti-capitalist phase, but I really respected this professor and the material he taught, because I felt like I was empowered by the material.
One day after class, I waited for 30 mins in a line to ask him how X% GDP growth etc. year-over-year was a sustainable goal. Being a young man with a lot of testosterone, I phrased it in a really edgy way, something like "Wouldn't you call something that grows forever a cancer?"
His response was that he had a strong belief that economic growth could reflect the growth and implementation of ideas, of new technologies and efforts that globally improve life. I don't remember it super well, but I do recall that he was emphasizing that while the curve had a material impact on people's lives, it would not necessarily require consumption of scarce resources or other damaging, difficult-to-reverse decisions that caused harm. (We were mostly using oil extraction as an example of a finite resource that had a tight relationship with economic growth.)
I liked his answer, but I didn't feel it was very likely. Decades later, I still think this mindset is damaging, but having volunteered a lot more in the public sphere, I can see how a lack of growth also causes huge problems.
[0] https://uwaterloo.ca/economics/profiles/larry-smith https://uwaterloo.ca/economics/profiles/larry-smith
- ssivark 3y agoThis is of course a very popular idea among economists (Eg. Paul Krugman has advocated something like this for a long time), because it allows them to have their cake and eat it too. But I fail to see any shred of evidence backing it up — it seems like purely wishful thinking on the part of someone who doesn’t want the party to change mood. The problem is that most economists do not actually have a good “grounded” model of productivity and growth — they are lost in their own abstractions (GDP and what not). The pernicious side effects of growth are symptomatic of the underlying problem which is market failure — and despite pockets of work (Eg. Stiglitz, etc) economics as a whole is not yet emotionally ready to wake up to the situation.