What is the economic theory behind promoting constant business growth?

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What economic theory is involved in promoting constant growth rather than allowing an organization to just reach a point of stability?

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Anonymous 0 Comments

The theory is competition. All of the things that businesses do to grow (offer new and better products, market their products better, etc.) are necessary to grow but also necessary to stay at their current point of stability. Ford could say “we sell enough cars, we don’t need to continue to develop new and better cars to constantly grow,” but very quickly they’d be out classed by their competitors and they would sell no cars instead of a stable number of cars. Even in simpler industries, a company that doesn’t attempt to get better, more efficient, etc. will eventually be beaten by competitors.

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