The Growth Dilemma

More is more and more is also different ~Benjamin Friedman, The Moral Consequences of Economic Growth, 2005 For much of the last 70 years, economic growth has lifted the quality of life in Europe, North America, and East Asia, providing social stability after the violent disruptions of World War II. Today, however, many of the world’s most influential leaders, even in the United States, reject the very notion that societies should improve material wealth and boost incomes given what they believe are more important environmental or social equity concerns. This sharp break from the past is occurring as growth in Europe, Japan, and the United States has fallen to half or less of what it was just a generation ago, and while fertility rates are at levels not seen since the medieval era. This promises to create a tsunami of retired people whose retirements can only be addressed by economic growth. The combination of reduced real income, green-driven rises in energy and housing costs, and growing concern about pensions has sparked a new wave of … Continue reading The Growth Dilemma