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by kbenson
1020 days ago
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> Long-term ongoing economic growth, expressed as a constant percentage, is baked in to most current orthodox economics and economic policy. Whether it is or isn't, the optimal strategy for a nation is likely exponential growth until it can't, and then switch as quickly as can be done with the least problems. Since nations are competing, and we're talking about exponentials here, the cost for cutting off exponential economic growth too soon is likely to become irrelevant to the future, which every nation is going to strive to avoid. |
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Countries which grow quickly bake those assumptions into financial, industrial, economic, and political policies. They create companies, regulatory bodies, and financial systems which are predicated on growth. They create economic ideology and the mechanisms for promulgating it which are founded on growth. They create development patterns (most especially of urban land use --- the most massive impact of the automobile was on city and suburban landscapes), and consumption patterns.
Once entrenched, those are all exceedingly difficult to dislodge.
I'd argue that China is wrestling with this now, and that a fair bit of the disruption of the past few years (above and beyond exogenous shocks, notably Covid-19) involve this, as the CCP attempts to wrest power back from industrial, financial, and real estate interests.
Some European countries (notably the Netherlands and Amsterdam with its bicycle- and transit-centric transport planning), Japan, and possibly others such as Costa Rica, seem to have followed a lower-growth curve. These may actually find transition more viable.
At the capital of capitalism, the United States, transition faces absolutely massive obstructions in the form of politics, politics-expressed-as-social-values, economic interests, finance, real estate, land use, transportation, building codes (residential, commercial, and industrial), and more. Those are far more significant obstructions than actual technical solutions, and the more illuminating advocates of sustainability that I follow tend to emphasize this.
(I'll list these later, though I'm still waiting for XorNot to cough up. I'll give them a few more hours.)