1
Economic Growth
Name……….
Westcliff University
BUS311: Principle of Macro Economics
Prof: Harvey Baldovino
Fe
uary 27th, 2021
Economic Growth.
“Go for growth”, was the main topic of discussion at the 2010 G-20 summit. There was consensus from the participating leading industrialized nations that achieving greater growth in the global economy is the best way to promote job creation and business expansion. (Heinberg, R. 30th, Nov 2011) But is growth sustainable and is it a required demand for prosperity in the modern age? It is a question that is complex and requires individuals, businesses and governments alike to consider the outcomes of unsustainability across multiple platforms of the socio/economic spectrum.
Economic Growth
Although it limits imagination, growth is good because it improves our lives, asserts Tim Jackson in his lecture at the Deakins Lectures, in 2010, (McPherson, I XXXXXXXXXXGrowth leads to jobs and jobs lead to votes, which is, after all, power as Jackson states. No doubt Apple will introduce the iPhone 13 soon and make another trillion dollars. When major tech companies seek to produce new technology to stay on the forefront of innovation yet lead the unassuming consumer to believe that he needs the latest gadget, there is a quandary. But there is a cost to the pursuit of growth. At least Apple is making an effort to protect the environment, but many companies and governments do not. According to Tim Jackson, how can our planet continue to grow with finite resources that are already 10 times out of the safety boundary of sustainability? When continued growth is predicted unsustainable, Jackson proposes there must be avenues for change as industrialized nations seek prosperity.
Economic Growth Time Limits
The idea that continued growth might be the problem rather than solution to global economic equity, is not a new idea. (Simms, A XXXXXXXXXXIn 1821, David Ricardo wrote about the ultimate equili
ium to which economic development leads. Also, John Stuart Mill in 1848 said that progressive states are followed by stationary states, and more recently The Limits to Growth, published by scientists at MIT, 1980, proposed that global economy cannot keep expanding because it is not sustainable economic system. The data in this study has proven to be accurate 40 years later as levels of pollution, population growth and industrial output have reflected the predictions. Mainstream economists however cannot see alternative ways leading to prosperity because money makes the world go round as they say. Even when debt has to pay down debt. There are fears that market crashes can happen easily if growth collapses. The COVID-19 pandemic has been an example of when governments have had to pay debt with debt in order to keep economies afloat. $19.5 trillion has been spent on defending economies and stopping them from going into depression and allowing the known order of things to spin out into oblivion. (McCormick, To
es, Benhamou, Pogkas, 2021) This has been made possible because of the low rate of interest to bo
ow money during the crisis. But the future promises a more difficult path as economies improve and COVID-19 is overcome. Then, government bo
owing will cost more as rates for bo
owing rises. So it will be harder to protect economies and people by providing government stimulus and welfare. That time is coming, and will only add to the cost of balancing global economies and the pursuit of growth.
Economic Growth Prosperity
How can countries pursue prosperity but not growth? There seems to be an attempt to redefine the word prosperity. Maybe the word prosperity should be replaced entirely with the word imagination, a word which can devise more convivial ways to share a finite planet. (Simms, A XXXXXXXXXXThe word however is commonly associated with rising GDP leading to financial security and then wealth, whether in global business enterprise or even within a family’s own budget, where our jobs provide security and we work to protect our security the same way that business pursues growth to protect their security from competition. Tim Jackson offers his perspectives. There are alternate systems apparently. Depleting resources and species extinction is the top problem that pursuing growth promotes.
https:
www.
c.com/news/science-environment XXXXXXXXXX
According to Prof Sir Partha Dasgupta, of the University of Cam
idge, Prosperity comes at 'devastating' cost to nature. (Briggs, H XXXXXXXXXXHe agrees with Tim Jackson. Dasgupta’s recommendations include, making food and energy systems sustainable through technological innovations and policies that change prices and behavioral norms, investing in programs that provide community-based family planning, expanding and improving access to protected areas and implementing large-scale and widespread investment in nature-based solutions to address biodiversity loss. (Briggs, H XXXXXXXXXXTim Jackson states the need for societies to “Decouple”. This means to separate economic activity so it is more efficient by growing, but not using as many resource materials, so less ca
on output and less cutting down of rain forests for human consumption. But can we make sense of prosperity without rising incomes? Life is more than money. Participating in a social relationship existence instead of pursuing money. We can rethink our pursuit of wealth. Prosperity should be about our ability to flourish within the limits of resources. It is a shared, lasting prosperity. Chasing short-term prosperity in materialism is giving away prosperity because it is not lasting. We could participate in more innovative ways of relationship with the resources of the planet, such as new ecological investment in the future of the world. Creating a relationship between us and our world where we maintain, protect, conserve looking to the future. We must change the course of evolution. We favor novelty seeking and selfish behavior, but we can think differently.
Conclusion
In conclusion, we can say that change is hard. We feel safe when we are in control, whether it is socially or financially. Fear of the unknown is a very powerful motivator, so we prefer to put it out of our minds, and it is better to continue down a known pathway than to imagine alternatives which may prove catastrophic. The ecologists are there to try to coerce governments and individuals to do their part in protecting the finite natural resources. This can be precarious as government systems of economics always look for predictable outcomes first and when there is risk, then it is not the best path forward. But there is a mountain of evidence to show that growth is unsustainable as it will cause its own demise in the end. Individuals may feel that they can’t affect the situation but if everyone does his part, then we can redefine prosperity that means we can enjoy life and work within the guideposts of sustainability without fear of economic collapse.
REFERENCE
1. McPherson, I [Ian McPherson] 2012, Jan 3rd, Tim Jackson: Growth Without Prosperity, [Video] YouTube, from https:
www.youtube.com/watch?v=dZ3Rnfg8oUE
2. Simms, A. (Feb, 1st, 2012) Clinging to Economic Growth Suffocates Innovation, from https:
www.theguardian.com/commentisfree/2012/fe
01/limits-to-economic-growth
3. Heinberg, R. (30th, Nov, 2011) Life after Economic Growth, from https:
www.theguardian.com/commentisfree/2011/nov/30/end-of-growth
4. Briggs, H. (Feb 2nd, 2021) Prosperity Comes at a Devastating Cost to Nature, from https:
www.
c.com/news/science-environment XXXXXXXXXX
5. McCormick, To
es, Benhamou, Pogkas. (Jan, 28th, 2021) COVID Has Added $19.5 Trillion to Global Debt, from https:
www.bloomberg.com/graphics/2021-coronavirus-global-debt
Assignment: Homework 310-week8
In this case study, you do research on the income inequality in the US. You should reference the two articles provided on two articles, and the material in your textbook related to this topic and one more article of your choosing. The results of this assignment should be reported in a 4-6-page, APA-formatted paper, including the following information:
1. Present a snapshot of income inequality in the USA.
2. Discuss a few factors that have contributed to income inequality in the USA for the past few decades.
3. What can be done to reverse that trend?
Provide an analysis of the concepts presented that demonstrates and summarizes the various factors that influence competitive markets and how these factors relate to income inequality
Here are the links for the articles:
· Breaking Down the Causes of Income Inequality - https:
www.usnews.com/opinion
logs/economic- intelligence/2012/07/16
eaking-down-the-causes-of-income-inequality
· U.S. Census Data
https:
www.census.gov/topics/income-poverty/income-inequality.html
· Video: How unequal can America get? Robert Reich https:
www.youtube.com/watch?v=QCu-XnVxhfk
Of course, you are encouraged to seek other resources for your CLA 2 paper!
Format
The following are formatting guidelines, which are expected to be used for each written assignment:
1. APA style formatting is required for each written assignment. Please use the APA 7 th edition. An updated copy of the APA changes and a sample of an APA paper can be found in the General Course Forums of the course Global Academic Portal (GAP), as well as the Writing Center.
All papers are to consist of original composition, double spaced, 12 -point type font in Times New Roman (although with 7 th edition, Cali
i 11-pt, Arial, 11-pt, Lucinda Sans Unicode 10-pt, Georgia 11-pt, and normal Computer Modern 10-pt are now allowed). The page length requirement does not include the title page, abstract, or reference pages.
2. Papers should begin with an introduction and should end with a conclusion.
3. The body of the paper must include citations according to the 7 th edition APA style format.
4. Every assignment should contain the minimum number and type of references as identified in the syllabus. For example, PA 1 assignments generally require a minimum of 2 peer-reviewed references, the CLA 1 a minimum of 3, and the CLA
2 a minimum of 4.
Make sure to demonstrate what you have learned in our class in creating your CLA2 Assignment!