You are viewing a single comment's thread from:

RE: Renegotiate the Pact

in LeoFinance18 hours ago

Wise insights as to why people are not having children, but the idea that an economy can grow without them is wrong.

Firstly economic growth is driven by increasing consumption. Fewer consumers (especially in wealthy countries) means less consumption.
No amount of AI and robotics can compensate for that.
No amount of third world population growth (which is itself slowing rapidly) can compensate for the endless decline in the number of consumers in advanced economies.
Moreover as people age they naturally spend less, both because they already have what they need and also because the natural aging processes mean they are less consumerist.

Fewer and fewer consumers every year means that long term economic growth is impossible. It means the stock prices, which are based on PE ratios, will fall.
Less wealth means remaining consumers spend less which drives down demand further.

Its a vicious and extremely destructive cycle of civilisational suicide that has happened to successful civilisations many times before in history and is playing out very rapidly on a global scale right now.

Sort:  

but the idea that an economy can grow without them is wrong.

No, I get this and should have clarified. The corporations don't care about the long term, they are in to maximize now. They aren't in it for a balanced economy, they are in it for quarterly and annual shareholder wealth.

Its a vicious and extremely destructive cycle of civilisational suicide that has happened to successful civilisations many times before in history and is playing out very rapidly on a global scale right now.

And with all we know, all the knowledge and history at our fingertips - here we are again.