Quote:
Originally Posted by Eclipse Now
Would it really end civilisation if we kept the economy at, say, last July? Does it HAVE to grow? Will we lose our lives if we froze economic growth at a certain percent?
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Well, it has to grow if you want to have kids! We're a long way from ZPG (anyone old enough to remember that acronym?), and the economy must grow if there's going to be jobs for the additional people!
Governmental economic policy *is* designed to target a modest and stable growth rate, but a growth rate greater than zero and one that accurately prognosticates *future* growth. Since this ability to prognosticate the future is imperfect, and indeed, the growth of population is governed greatly by luck, there's no way to simply lock it in at 2% without running into surpluses or deficits.
It would be nice to be able to see the future perfectly, but quite frankly, by letting the market bet on it, we end up with about as close a guess as we're ever going to have.
The alternative to that is severe swings that are not survivable!
In spite of the Depression, or maybe because of it, folks were hungry for a good time, and an evening of dancing seemed a good way to have it,
Buffy
