Economics and the Environment :: Sustainable Growth Essays

Mainstream economic thought of the 20th century was dominated by the principle of ‘more is better’, this thinking is dangerously misguided. Concentrating on maximizing real GNP has been brought about by economists who are working on the assumption that growth is always justified, because of the infinite wants of the population. These economists also see growth as a solution to the problems of the world today. Even those who propose ‘sustainable growth’ are false in that they assume that it is possible to continue with the growth of the last two centuries. Some of the fallacies being put forth are growth as a solution to pollution, â€Å"trickle down† effect of growth needed to help the poor, and technological salvation. They feel the exponential growth of the present can continue as long as technology can keep up, and that resource efficiency can grow indefinitely so as to stabilize resource flow. By analyzing these arguments we can see their contra dictory tendencies and show that by prioritizing ‘growth’ alone, the global economy and its participants will be worse off. First, there is a natural response to the word growth. It being a sense of advancement or betterment, this is not always the case. The notion of growth must always carry with it a concept of maturity. Growing beyond it would give rise to problems. For example, when a baby grows its parents are pleased and even show off to their friends at every inch and pound. However, imagine that the baby continued to grow infinitely! The parents would be concerned to say the least. The baby would outgrow its house parents and everything else it depends on for growth. Common sense tells us that there is reasonable level at which everything must grow, beyond which it is considered detrimental to itself and its surroundings. Our economy is a subset of the ecosystem we live in, and must grow to proportions that are reasonable to it. It definitely cannot continue to grow outside of it, nor should it grow to a point where it is harmful to the ecosystem. The economy being dependent upon the ecosystem mu st adhere itself to achieving a state of compatibility with environment. Logic follows then, what is the optimal level of economic output? How do we decide what level should be maintained. We certainly cannot use the standard of the average american. In order to get that, we would have to increase the world economy by a multiple of seven! As it stands now human being use up a little more than a fourth of the worlds net primary product of photosynthesis.