Pyramid Scheme

No, but seriously. I hear all this talk about economic growth being the key factor in recovering from the economic recession. But how can the economy constantly grow? Population isn’t increasing that much except in third-world countries, and we have pretty much tapped into all the natural resources available to us. How is a model of economics based off of growth remotely sustainable? Obviously I am no economist, but here is what I see: we have been building up a market economy and globalizing for the past two centuries. All of this growth and expansion has been based on the principle of exploiting other locations. We used other countries that had different supplies and demands as leverage to boost our own economy. With the exhaustion of new sources of raw materials (metals and lumber and oil are getting scarcer and scarcer) and the homogenization of the global market, how can we possibly hope to maintain this economic disparity which lets us grow. Now, I will admit that there are still developing nations and a growing global population. But what happens when the global population tops out at 10 billion (see below) and all regions reach a certain standard of living expectation?

If anybody is economist, could you please explain whether or not this model is unsustainable, and if so why we subscribe to it.


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