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

Not an economist, but if this were a household, the cost of living seems to go up every year, as the people that live in the house get older, more bills get accumulated, when the young leave the house, potentially less income to help pay for projects, renos and utilities.

To me, a growing economy is the ability to keep up with the demands of the citizens by ensuring a high number of jobs, and a strong world position for trade and purchases.

I admit, I might be way off.