Friday, October 22, 2010

Can Capitalistic Countries Grow Their GDP Forever Without Repercussion?

By Lance Winslow
Many folks that question the ultimate end game for a capitalist nation, point to the fact that you cannot grow your GDP forever, and perhaps, you've sided with this argument on occasion. True free market thinkers will tell you that such a notion is nonsense, as an ever evolving business climate can change and find new avenues as innovation continues and that the potential for change and new offshoots is endless.

If you'd like to hear this debate taken to a whole new level leaving very few stones unturned, then I'd sure like to recommend a very good book to you, that will certainly make you think (it's about 600 pages and very comprehensive, well foot noted and researched);

"The Moral Consequences of Economic Growth" by Benjamin M Friedman; Vintage Publishing; (2006); ISBN: 978-1400095711

Very interesting book and thought topic on the subject of economic growth. It discusses the issues of economies on the top of the curve, and how shortages and disruptions are still possible; why large nations and small developing ones experience similar problems. The philosophy in the book is well founded and the arguments rather intriguing too.

The book talks about economic prosperity, GDP, taxation, float, consumer choice, standard of living. The concepts of economies of scale allowing for excesses to pay for the common good, military, social needs, education, etc. are well-defined and the argument for growth over curtailed growth to solve the challenges of civilization.

The author shows how abundance is the best choice and how that can solve the environmental issues associated with mass production better than a socialist economic mindset. He contends that a robust economy provides more choice, better freedom, stronger democracies, cleaner environment and higher standards of living all the way around. He admits that sometimes growth in the past has been problematic in some nations, but that if one has to choose, growth is a far better choice for all concerned.


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