eli5 How Do economies keep growing

120 views

how do big companies like apple and others keep growing?
would they be a bad company if they didnt grow, their eco would be stable (they dont grow nor lose money)
does companies continuous growing mean people are continuously going poorer

In: 0

3 Answers

Anonymous 0 Comments

There are a number of reasons why economies continue to grow. One is that people are always finding new and better ways to produce goods and services. This means that they can produce more with the same amount of resources, or the same amount with fewer resources. As a result, there are more goods and services available for people to consume, and the economy grows.
Another reason why economies grow is that population growth provides a boost to demand. More people means more consumers, and this increased demand can spur businesses to produce more goods and services. This, in turn, leads to further economic growth.
Ultimately, economies grow because people are constantly finding new ways to be productive, and population growth provides a boost to demand. As long as these two factors continue, economies will continue to grow.

Anonymous 0 Comments

If you start with nothing out in a plot of land in the middle of the forest without any access to the outside world you could start gathering food, building shelter and then start farming. It may take you a few years but you would end up with a farm that could sustain yourself even if you only worked part time on it. So your economy started with nothing and ended with a productive farm. If you continue this and work in your spare time on improvements you might end up with an even bigger economy with things like a flour mill, sawmill, etc.

The same take place on a larger scale as well. You pay software developers a few million dollars to make a product that is worth a hundred million dollars. That metal fabricator is making a tool that is worth maybe twice his rate in the amount of goods it will produce, and the fabricator even have enough money and spare time to get better tools for himself over time so he can work faster and take on more dificult jobs. The infrastructure that our economy is built on is growing over time as workers build it up and therefore the economy is growing.

Anonymous 0 Comments

Some is better technology or better looking product. Most nowadays is marketing. When they can’t increase sales from new customers, they have to make their current customers buy more or buy more quickly between new model numbers.

Most manufacturing companies that used to compete on quality (ours is better than theirs so give your money to us) are now working hand in hand with the competitors (called collusion and used to be illegal) and they all agree to shorten the lives of products in order to force more purchases, called *designed obsolescence*. (see [the lightbulb conspiracy](https://www.youtube.com/watch?v=wzJI8gfpu5Y))

Instead of doing something about this issue, as well as dozens of others that touch our daily lives, we are trained to yell at one another about abortion, immigration and other ‘divide & conquer’ strategies from the powers that be.