More and more people have begun to question the possibility of human economies ability to grow forever. The overuse of Earth’s natural resources as well as the destruction regional ecosystems and global ecosystems should tell us that something is wrong. However many mainstream economists seem to not be concerned with these facts. They are still claiming that economic growth is not only possible, it’s necessary to improve our well-being. This maybe true in some cases–no one would argue that Uganda or Pakistan should not work for more economic growth but this distinction should not be generalized.
The problem is that the whole model of macro-economic growth is built on a fatal flaw–we assume that we can grow forever. The theory states that the resources are fungible and substitutable simply put: “Natural resources are not an issue as long as our technology is improving.” This is not only irresponsible, it’s insane.
What will technology use if we run if we run out of the resource which we use to build the resources? Herman Daly put it nicely “You can not build the same wooden house with half the wood just because you have more or better saws.”
The question now is one of responsibility: do we want to proceed with “business as usual” and naively assume that technology will solve all our problems and run the risk of a catastrophe? Or shall we back pedal and think about the development and balance of Western economies versus those of the developing world?