- #36
Count Iblis
- 1,863
- 8
If you have a more socialist system, you can let the economy slow down a bit without causing problems. That would also reduce CO2 emissions, so it wouldn't be a bad thing.
The problems most developed countries face is primarily caused by chronic over consumption. Despite the fact that there are unemployed people and you have regional poverty problems, the cure for this is not by having more economic growth by letting people consume even more.
The problem is similar to the energy balance of an extremely obese person who is addicted to eating. The metabolic rate of such a person is actually higher than that of the average person. If the weight of the person is stable, then he is burning as many calories as he is eating, and he is eating a huge amount. So, his "GDP" measured in used calories looks very healthy, but we know that this is a bad measure of biological health. Rather we should put the person on a home trainer and see what his maximal power output is. If it is lower than 200 Watt for a young person, that's an indication of bad physical fitness.
Now, this obese person does have energy problems. His muscles are wasting away. He feels hungry and tired all day. But eating more is not the solution. He should eat less and work out more! The same is true for the developed countries. We should have a larger government, increase taxes which will lower wasteful consumption. The measure of economic health is the analogue of putting the obese person on a home trainer. E.g., what is the capacity the government has to explore space? If there is room for spending trillions to build bases on Mars, then that's an indication of a healthy economy.
The economic crises we are facing since late 2008 is analogous to the obese person feeling sick and as a result not being able to eat as many Big Macs as he is used to. He must now take it easy, otherwise he might collapse. The sickness was caused by the obese person eating even more to try to get more energy. It worked for a while until he got stomach problems.
The problems most developed countries face is primarily caused by chronic over consumption. Despite the fact that there are unemployed people and you have regional poverty problems, the cure for this is not by having more economic growth by letting people consume even more.
The problem is similar to the energy balance of an extremely obese person who is addicted to eating. The metabolic rate of such a person is actually higher than that of the average person. If the weight of the person is stable, then he is burning as many calories as he is eating, and he is eating a huge amount. So, his "GDP" measured in used calories looks very healthy, but we know that this is a bad measure of biological health. Rather we should put the person on a home trainer and see what his maximal power output is. If it is lower than 200 Watt for a young person, that's an indication of bad physical fitness.
Now, this obese person does have energy problems. His muscles are wasting away. He feels hungry and tired all day. But eating more is not the solution. He should eat less and work out more! The same is true for the developed countries. We should have a larger government, increase taxes which will lower wasteful consumption. The measure of economic health is the analogue of putting the obese person on a home trainer. E.g., what is the capacity the government has to explore space? If there is room for spending trillions to build bases on Mars, then that's an indication of a healthy economy.
The economic crises we are facing since late 2008 is analogous to the obese person feeling sick and as a result not being able to eat as many Big Macs as he is used to. He must now take it easy, otherwise he might collapse. The sickness was caused by the obese person eating even more to try to get more energy. It worked for a while until he got stomach problems.