Why Does An Economy Have To Grow?
Economies don’t have to grow. But often they just do it. When understood correctly, growth simply means more quality of life.
Sources of overall growth
Overall growth can have two sources. These are the increasing use of production factors such as labor, capital, energy, etc., and increasing efficiency. The main driver of efficiency is technical progress. This is not created in a single country, but through countless innovations worldwide. That is why countries only have no long-term growth if their economy cannot use global technical progress and the use of production factors decreases, be it because of wrong incentives or because their population is shrinking.
