The current global economy is structured on exponential growth. Under this model, a “healthy” economy is constantly growing and constantly increasing it’s rate of growth. For example, instead of increasing by 1% every quarter, the goal would be to increase by 1% the first quarter, 2% the second, 4% the third, 16% the fourth, and so on.
Exponential Growth: Is It Good or Bad?
That’s all well and good, until it meets reality. Unfortunately we live in a world that has finite resources. Infinite growth simply isn’t possible, because we don’t have infinite supplies of energy, food, and raw materials. Combine that with growing debt and you have a recipe for economic disaster.
Check out this video to learn more about the problems with the economy and what we can do about it.