IMF: Global economy 'in danger zone' over euro crisis

[caseymoz]

2. First, we have a growing population.

That means more wealth has to be created to assure the newest generation's survival.

Second, and this one's theoretical, i.e. what I believe: entropy. If you haven't noticed, things fall apart, they need to be maintained or recreated, even for a sustaining population. You can recycle, but the more you cycle it through the less you can actually use. This is both a physical and an economic phenomenon. If you wonder why currencies tend to inflate over time, though not at the same rate, I think that's actually why. It is harder to do things in the future than it is in the present, and it will always be.

Third, social maintenance. In order for nation-states to hang together and people to live together harmoniously, they must do some combination of give the masses at the bottom of the social rung some benefit in return for allowing the wealthy to gain riches and live relatively safe, they must promise such benefits, and/or they must police. Except for the promises, two of those require growth. The second one requires some sign, now and then, that the promises can and will be fulfilled.

And there may be others, but those are the main ones I could think of.

Why do we need so much growth? I've always thought we could do well well enough with less productivity, since a lot of things are being automated now, meaning so many people will end up unemployed.