Isn't it possible that the economy just can't get much better?

United States
June 16, 2011 9:21am CST
Every political party and every business promises to do this or that to improve the economy: basically thinking they have the answer to making growth, the percentage of increase over last years profits, "grow". But we exist in a finite world of finite resources. No matter what we legislate or deregulate, no matter what we tax or give incentive to, there will always be the same total amount of land, sky and water. Isn't there obviously going to be a time when it becomes impossible for profits to exceed the previous year; a time when we should feel lucky to break even with last year's numbers. That would be called a recession and is apparently just one step down from the Apocalypse to hear the politicians spin. Sure we've been spoiled by low unemployment, impressive yearly increases in corporate profits and relatively harmless increases to inflation. This period of properity has made too many people think it can go on forever, but a free market economy is self-adjusting and at some point society will have to suffer for that system to find a steady point: Steady, as in breaking even, instead of 6% or more increases over the previous year. I'm not convinced we are at the point where zero growth is ready to be the norm. Current numbers still show an economy that is slowly growing despite the horror stories from politicians wanting to get elected over incumbents. However, growth is relatively quite slow and unemployment is at a higher level than we are used to in order to maintain this "growth": Companies could hire alot more people to keep unemployment where we are used to seeing it now, but their profits would be gone. Is it time to stop thinking about a successful economy as one that has incredibly high growth? Is it time to allow for mediocrity in our business expectations? Is it time to worry that any attempts to keep the growth we want are merely going to hurt us in the long run?
2 responses
@sswallace21 (1824)
• United States
17 Jun 11
WOW! We've been spoiled for so long any decline in our economy is going to send the people into an uproar. Sad thing is everyone is blaming the President. I really don't think it's all his fault. He inherited a mess an has tried to help our country but with very little support in congress. It seems to me if the average Joe off the street gets it why doesn't our elected officials. As I've said before, they need to put their personal belief aside for a moment and listen to the real issues. Working with each other as opposed to against each other will be more productive and less stressful on everyone. Best Wishes!
• United States
19 Jun 11
Intelligent discourse and compromise are needed. It seems like a long time since our politicians have been capable of either. I don't know if this is an effect of the populace reflected in our politicians or an effect ON the populace driven by the politicians. Whatever the case, now that it is ingrained, it will be hard to change.
@divitiae (193)
16 Jun 11
We are a long way from peak production, in fact there is more known oil now than ever before and we are now seeing tech which can create oil from renewable sugar using microbes. Technology is increasing far faster that consumption and there is a whole universe of resources out there beyond the earth.
• United States
19 Jun 11
I love your optimism. I hope you are correct, because we humans do not seem to be very forward-thinking on the whole and that can haunt us in the near future.