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One of the counterarguments to exponential growth, particularly in the context of limits, is that growth rises to some constraint. What the country with a higher nominal GDP growth rate does is ... hit that limit sooner rather than later. We've seen countries go through tremendous growth spurts: the UK ~1800 -- 1914; the US ~1870--1970; post-WWII Japan 1945--1990; the "Asian Tigers" of South Korea (particularly contrasted with the North), Hong Kong, Singapore, and Taiwan 1960-2020; and most significantly of all, China 1990--2020. But each of those eventually hit a wall and saw vastly diminished, or no net GDP growth. To that extent, "rapid growth" seems largely a matter of "reaching your ultimate potential earlier". And the post-rapid-growth phase turns out to have ... interesting challenges: environment, politics, demographics, and more, many of which emerge after sheer growth alone can no longer paper over conflicts or issues which had been present all along. There's also of course the argument that GDP doesn't measure actual net wealth or common weal, which is a criticism that dates back to the origins of GDP/GNP, and even its creator, Simon Kuznets. There are numerous alternative measures that are proposed. One aspect I've not seen much addressed is that GDP is largely a tool for managing macroeconomic monetary dynamics, that is, as total monetary exchange grows or shrinks, then the monetary base itself must be adjusted, which is the remit of central banks. Those banks can create or destroy money at will (pursuant to policy goals and prime directives), because money itself is not wealth. The knock-on effects are felt profoundly in asset markets, that is, goods or securities whose principle or significant function is to serve as an inflation-resistant store of wealth: stocks, bonds, real estate, precious metals, collectables (art, wine, cars, etc.), and the like. Asset value inflation is not itself economic productivity. It may reflect economic productivity (that's at least the fig leaf covering stock markets), but far more often, asset inflation simply follows national and global monetary policy, most especially rising in times of loose money or easy loans (largely equivalent terms). John Kenneth Galbraith's The Great Crash 1929 remains an excellent post mortem of one such event. To that extent, measuring GDP growth alone provides distorted view of actual wealth growth, both at the level of individuals (say, median, bottom quintile), and of net national power and stability, though of course how distorted is the stuff of legendary disagreements. There is a history of countries burning through growth potential with immense rapidity, most especially in the case of natural resources extraction. Instability in the Levant following the mid-2000s has been tied to loss of net-exporter status among oil producers (Syria, Egypt, Libya), as well as food scarcity through both climate-related crop shortages and reduced imports as oil revenues decline. One of the more spectacular cases is the Pacific island nation of Nauru, which underwent a birdshit apocalypse after (briefly) highlighting as the world's richest nation (per capita) after what proved to be a highly limited resource reached its limits. <https://www.nytimes.com/1995/12/10/world/a-pacific-island-na...> The country's recovered somewhat by entering into the hospitality business. That is, it runs internment camps for the refugees Australia would prefer to pretend don't exist and sends elsewhere: <https://devpolicy.org/nauru-riches-to-rags-to-riches-2021041...> To the extent that contemporary economies run on the basis of extraction (petroleum, coal, natural gas, minerals, groundwater, topsoil) and sink exhaustion (the ozone layer, heavy metal contamination, greenhouse gasses, plastics and endocrine disruptors, habitat and species disruption, ...), none of which are costed into either market transactions or national wealth/income statistics ... well, we're all on busses headed toward various cliffs, some nearer, some further. One option is to expend resources on things which presently have relatively low value but would be exceedingly useful in a post-carbon / post-collapse society. That includes basic skills, sustainable practices, sustainable infrastructure, and the social patterns which can effectively utilise these. Keep in mind that this runs directly contrary to market signalling as markets have an overwhelming present-bias in assigning values, as anyone caught holding the bag after a crash can tell you. Potential future utility simply isn't considered, and in general, non-market mechanisms seem to be required to encourage such investments. (There are other systems which similarly fail to consider long-term value, and it's long been a favourite trope to note the immense ecological contamination and pollution which occurred in the Soviet bloc. However similar desecration was seen both earlier and simultaneously under market systems ... both are poor at delivering ecological equity. Ultimate reforms have tended to emerge through social movements, legislation, and legal recourse, none of which are market-based.) My final argument is that much of the advantages attributed to economic growth can be had at relatively low levels of same. That is, equity and distribution count for far more than total gross production or consumption. Invest in infrastructure, healthcare (with a strong emphasis on basic access and preventive measures rather than heroic interventions), education, affordable housing, social safety nets, and sustainable development of transport, built infrastructure (at individual building, community, regional and national levels), resource preservation and enhancement (e.g., water, soil, forest, and wildlands cultivation), actual productivity, mitigation of undesired consequences, and the like, and ... I think you might see a path which whilst it might not register on mainstream metrics is actually preferable over the long run. |
> One of the counterarguments to exponential growth, particularly in the context of limits, is that growth rises to some constraint.
This is an interesting concept, and depending on what we believe fuels growth is obviously true to a greater or lesser extent (mostly greater, in my opinion). It's obvious that resources fuel growth, and different countries have different kinds and amounts of resources, so those eventually being tapped means loss of at least one fuel of growth. Population also fuels growth, but there are obviously limits there (even if people often can't agree on how and when they will express themselves), such as living space and ability to source food.
At the same time, there are things that fuel growth (in this case whether we're talking about GDP or some more holistic metrics of citizen wealth or well-being) such as new technology, whether it be spurred advances in the hard sciences or soft. Political, organizational and social technologies are not to be underestimated here I think. A change on society that causes a marked decrease in psychological problems such as depression, or increase in happiness in some other way, would be immensely important.
In the end though, the technological changes are probably hard to hoard for the benefit of one nation over the other (even if adoption of something that seems extremely beneficial doesn't often happen on short time frames), so the things that cause growth that are limited resources at likely the important thing to focus on. It seems fairly obvious to me that different nations already have different amounts of these resources or the ability to grow them, and will hit those limits at different times.
In the end though, it may not be what matters, as while there are countries of different relative potential, there's also growth through current relative power. Powerful countries can achieve better terms in trade with others by leveraging that power, so the more powerful you are, and the sooner you can bring that power to bear, the more benefit it brings you. In this way, being economically more powerful than others is itself is a form resource to be tapped for more growth.
> ere is a history of countries burning through growth potential with immense rapidity, most especially in the case of natural resources extraction.
To be clear, my argument is not necessarily to grow as quickly as possible (I think that's obviously non-optimal given the negative repercussions and the unknown time at which growth becomes capped), but to continue to try to leverage resources into growth when still possible as fast as is safe (which is obciously complex and hard to do and a moving target).
In large I think that means countries should keep doing what they're doing. IU also think ecological sustainability should be more emphasized, but I don't think that is antithetical to what I just said. We should attempt to grow as much as we can, but pay close attention to the consequences and try to minimize the negative ones. Hopefully that means we're also paying attention to any eventual slowing of cessation of a lot of growth drivers and planning for what that entails as we near it.
> My final argument is that much of the advantages attributed to economic growth can be had at relatively low levels of same. ... Invest in infrastructure, healthcare ...
That investment is where I would like to see a lot of the growth funneled into. The quicker we grow in ways which do not exacerbate those problems, the more resources we'll have to put towards solving them. Ultimately, in a perfect world that might mean picking the areas of growth that have the most bang-for-the-buck to leverage that towards actual problems for people (because it's easy to abstract this away to countries and just say let's get more people which will drive more growth), to make individuals happier, because otherwise why are we bothering.
That most of these decisions are made by large machines that often work through emergent behavior that is hard to steer is not lost on me, and I understand most my arguments are academic and ivory tower in nature.
Finally, thanks for including a large supplementary comment of sources. I'll be adding them to the stack of things I should read (but unfortunately rarely allow myself time for). I truly appreciate it.