Growth and Prosperity

Salon on Saturday was quite heated… we spent some time debating the idea of living well as a country without growth. Growth brings better living, sure, but what’s so bad about a constant standard of living? There was the assumption that zero growth meant a constant standard of living.

Not true! Because of trade. We live so well today because we trade. No growth = no efficiency improvement = eventually nothing to trade as others outcompete you. For no growth to mean a constant standard of living, you need to be isolationist as well!

Note that this applies to both countries and individuals.

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