Governments promise continuous economic growth, but it’s actually an illusion. Some people think that governments should abandon this. Please talk about the validity and the implications of the promise continuous economic growth.
Governments have been espousing the notion that the economy can continue to grow continuously. This essay discusses why I believe this cannot occur and what implications these governmental assurances might have.
The economy cannot continue to grow due to the environmental impacts. As the economy grows, more resources are becoming depleted. This is because many of the resources such as oil are non-renewable and when they run out this will lead to a slowing of the industries that rely on them. Moreover, more pollution is being generated which is leading to issues such as global warming. Global warming is having devastating effects on people and our ecosystem more generally. This means that economic growth needs to be curbed in order to sustain life on this planet.
False promises of continuous economic development have long-term negative impacts on the economy. The most serious one is that it has been used as justification for the government to run huge deficits. However, if the economy doesn’t grow there will be extreme hardship for current and future generations to repay these loans. The expectations for growth are also having harmful influences on investments. People are putting their savings into risky areas that require the economy to grow and many of these people will see their savings wiped out when the growth fails to materialize.
In conclusion, our economies cannot continue to expand due to resource depletion and pollution. The consequences are that rising government debt will lead to future economic hardship and that many investments that rely on a growing economy are going to cost investors their savings. Consequently, it seems likely that economic growth is going to either stall or even turn negative.