What is zero growth?

Sometimes known as the economy of a steady state, zero growth is a type of economic theory that is related to the creation of a specific state or state in the economy. Specifically, the idea of ​​using all activities and economic policies so that the status of balance is achieved and maintained for some time. The idea is that by achieving this balance, the opportunity for economic collapse is minimized, so that the potential for recession or some other type of undesirable pattern occurs. While zero growth is considered to be a desirable goal from many economists, others disagree that this state is the best choice over time and is considered to be essential for progress in technological and other areas. At the same time, this state also has a characteristic of low unemployment of any given moment. As a result, the economy generally remains strong and there is a very small change in each calendar year in terms of growth or loss. Events with the potential of starting inflation or recessionE are kept at a minimum and natural controls and balance within the healthy economy compensate for any impact that these events can generate in the short term.

Zero proponents believe that the consistency provided by this type of economic state is better than the model of continuous growth, in this rapid and continued growth it usually leads to a period in which the economy boom suddenly breaks down. When this happens, businesses begin to release employees; Prices are rising; And unemployment increases, sometimes to alarming characters. Although the impact of these events can be remedied over time, the process can take years. Meanwhile, people living a SN nation that goes through the economic recession does not have to afford to buy food, pay rent or repayment of mortgages or maintain a fair standard of living in general.

Critics of zero growth notice that while the concept tends to occurMany economic afflictions, progress are often made in the face of adversity. In particular, technology is likely to develop during an economic decline, which will eventually lead to new industries and products that help move the economy forward. From this point of view, the movement of the national economy over time can be perceived as needed to support progress in most aspects of society from time to time.