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

It’s kinda of 2 problems.

-A lemonade stand can’t grow in size if it only breaks even, you can’t afford to hire another employee or build a new stand. So you end up standing still till you eventually run out of money, as supplies keep going up every year.

-The population is getting older. If 10 people retire every year, and only 9 people are available to be hired, how long before you run out of employees?