Why does the economy need to continue to grow, especially in countries such as Japan where population is declining?

Question

Why does the economy need to continue to grow, especially in countries such as Japan where population is declining?

In: 56

Answer 1

There are already great economic answers here, but there’s a political dimension, especially about inequality.

If the economy was static then for any given person to benefit more that means someone else would have to have less. It would mean a very difficult conversation and societal disruption as we come to terms with this, one in which those who have the most wealth and most power have the most to lose. While there is growth, the life of ordinary people can improve, without that there is either revolution or repression.