• VeryInterestingTable@jlai.lu
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    12 hours ago

    Stephen Poloz — who is now a special adviser at Osler, Hoskins and Harcourt — said growth in Canada is only at about one per cent, and the economy is still “digesting” U.S. President Donald Trump’s tariff regime.

    I’m not an economist so what I’m about to say it going to show:

    Why is growth that important? Like everything it seems healthy once we reach a certain point to stop growing no? Or did we trap ourselves in a system like quicksand that requires us to grow taller in order not to suffocate?

    Personnally I would love for things that work well, to remain the same and not seek to juice more money out of it.

    • ☆ Yσɠƚԋσʂ ☆@lemmy.mlOP
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      12 hours ago

      The constant need for growth isn’t about making life better for most people. It’s a structural requirement of capitalism itself because the system runs on profit which comes from the value created by workers. Companies have to constantly expand their markets to keep the rate of profit from falling, cut costs, and find new ways to generate more value from us. If the economy stops growing then investment stalls and unemployment rises because the whole financialized structure is built on the expectation of future returns. The purpose of the economy isn’t to improve our lives, and the whole growth treadmill we’re on exists because capitalism demands endless accumulation to sustain itself.

    • Malle_Yeno@pawb.social
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      11 hours ago

      Outside of the normal Marxist reasons for capitalist pursuit of growth, there’s a resource demand argument for growth (which would exist even without capitalism).

      Think of it like this: everyday, people are born or immigrate here. Everyone has needs that need to be satisfied, like food, housing, entertainment, medicine, art and culture, education, clothing, and water. Let’s imagine that growth didn’t occur. These needs would still be there, so that situation would mean that everyone would have to make do with a little less per-capita – or some people would have to go without. What other conclusion would there be if there’s no growth in production and supply but a growth in total demand?

      Even in a socialist or communist system, growth would still need to be planned for because the population tends to grow and people have needs to tend for. Unless you are planning for a population to be maintained at replacement rate on a multi-generational scale, economic growth needs to happen to accommodate a growing population.

      Edit: to be clear, I am not suggesting that capitalism does resource distribution well. I started out by saying “outside of the normal Marxist reasons for capitalist pursuit of growth” for a reason. I’m just saying growth needs to be planned for no matter the mode of production.