(Bonus question: how does an economy stops growing? If it’s possible)
EDIT: Thank you all for your help. This is def more helpful and fun than good ol’ lessons.
In: Economics
> how does an economy stops growing?
People take up space, and they don’t take less space as they age. As they age, they start requiring work to be kept alive, so instead of working and inventing new things, they’re just being taken care of, and the people taking care of them can’t invent and produce new things.
It’s a lot like livestock. You can only make money off livestock as long as it’s beind sold off to be killed and consumed, closing the cycle of life.
Economies stop growing either when the people in it are too old, or when the product they supply isn’t in need anymore. Brazil is an example of that because whenever countries like China need a lot of raw materials we grow, but when they already have everything they need for a run we don’t sell anything anymore. Currently we’re selling them soy and meat, some iron ore, so we’re starting to grow again. As soon as they stop buying, into the gutter we go.
A steady state would imply that everything that is produced is quickly consumed, that everyone has a chance to live and is quickly removed so that the young can have a go too. Think of Logan’s Run.
Latest Answers