- Joined
- May 8, 2018
- Location
- south east england
I was watching an interview on youtube the other day about economics, the gist of it was our capitalist system is based around growth of 3% per annum, and if you take the whole world economy valued in trillions and trillions, 3% is a huge amount of money...so the question is where is that growth going to come from?
Obviously for the last twenty years labour costs have been shaved through the use of technology [the use of robots in factories being one example] and off shoring production to countries with low labour costs compared to the west, so I suspect this has accounted for some of the growth in revenue/profit for the last 20 years. Personal debt has accounted for consumer sales growth. The cost of housing has shot up too which involves more indebtedness than previously required.
But where's the next 20 years of 3% growth going to come from, [trillions] especially considering the experts on pollution/governing bodies say we need to consume less resouces and have a more sustainable lifestyle.
I think this is probably why we had the 2008 crash, the world of finance trying to make huge amounts of money from money eventually runs into trouble.
[for comparison: in 1995 the global world product was 33 trillion, in 2014 it was 77 trillion, so it's exponential]
Obviously for the last twenty years labour costs have been shaved through the use of technology [the use of robots in factories being one example] and off shoring production to countries with low labour costs compared to the west, so I suspect this has accounted for some of the growth in revenue/profit for the last 20 years. Personal debt has accounted for consumer sales growth. The cost of housing has shot up too which involves more indebtedness than previously required.
But where's the next 20 years of 3% growth going to come from, [trillions] especially considering the experts on pollution/governing bodies say we need to consume less resouces and have a more sustainable lifestyle.
I think this is probably why we had the 2008 crash, the world of finance trying to make huge amounts of money from money eventually runs into trouble.
[for comparison: in 1995 the global world product was 33 trillion, in 2014 it was 77 trillion, so it's exponential]