I think it's a peculiarity that:
1) The economy is expected to expand continually and forever.
2) Many, many companies are in deep doodoo if their market is not growing pretty rapidly.
You'll notice that everybody panics if the growth in a market is less than the growth last year!
Seeing as how there's a limit to the population, it just seems to be a sucker bet to hang your hat on continual expansion. I think it would be more sound having a business which simply has a stronger foundation.
It's like a big vehicle (a bus for example) which would explode if it ever drove slower than, say, 50 miles/hour. Hey, somebody should make a movie like that, I'd call it "Velocity". Could be a hit.
There IS already a movie with exactly that plot, but right now I don't remember the title ...
ReplyDeleteNow I have found out:
ReplyDelete"Speed" (1994)
http://www.imdb.com/title/tt0111257/
Was it a joke from you?
Neeraj is a bit sleepy today :-)
ReplyDeleteEo, now, now, don't start trying to use common sense to run the World economy. We wouldn't want to live in a happy World that made sense and where humans were in harmony with the Earth.
Fortunately, "the economy" is not a pie where each slice means the rest of the pie is now less. It is a pie that expands and grows naturally if not meddled with. Obviously, governments have a real problem with being addicted to meddling with the pie.
ReplyDelete"Neeraj is a bit sleepy today :-)"
ReplyDeleteYeah, my coffee has run out - first I had to buy some ...
Neeraj, spot on.
ReplyDeleteThe little beast in me makes me want to make my jokes less than obvious. :-)
"We wouldn't want to live in a happy World that made sense"
I think that is actually so.
Fortunately we can change what we want. Though it takes time.
.... it just seems to be a sucker bet to hang your hat on continual expansion.
ReplyDelete“Economic growth” is a synonym to “development of technology”. The economy grows, and can only grow, through the development of technology.
So, what you are saying is that even though today's cameras are significantly better and cheaper than those of just a few years ago, it would be a fool's bet to assume this trend to continue?
We've reached the pinnacle in cameras and other technology?
Far from it, I'm sure, but we may be close to what most people need. Most people, even many nerds now, just use their phone these days. Heck, I could do that with the iPhone 4, except I like telezoom and low-light capabilities.
ReplyDeleteBut even if tech and the economy continues to expand in general, just watch how much *trouble* there is when the economy stops expanding for a couple of years, so many lay-offs etc. Great panic in the streets.
but we may be close to what most people need
ReplyDeleteBetter technology is always preferable: Cars that consume less, materials that are better and cheaper, and housing that works more effectively.
just watch how much *trouble* there is when the economy stops expanding
Economy grows as long as people continue to innovate, and I don't think there has been any hitches on that so far.
What you are talking about is the boom/bust business cycle and inflation. That is created by monetary policy. It is artificial and has nothing to do with the real economy underneath.
You could well be right. Maybe I should have said "markets" instead of "economy".
ReplyDeleteExcept that, once again, monetary policy has nothing to do with markets since they are imposed from "above" rather than through consensual, mutually-beneficial exchange between ordinary people.
ReplyDeleteYes, and these concepts are also intentionally muddied by TPTB. Newspeak.
ReplyDeleteBut the false economy is coming to an end now pretty soon.