There is broad consensus in the business world on the need for continued economic growth. At the same time, dissent from politicians is growing: growth must not be seen as an end in itself. ING’s senior economist Bert Colijn understands this view, but “there are important side effects that you will miss without economic growth, the question is how long society will accept that.”
Prosperity in the Netherlands has increased tremendously over the past two centuries. This is largely due to economic growth. According to Colijn, the standard of living in terms of spending has also risen markedly. ‘Also, we see a development in the field of health in the same period. This is hard to separate from the economic growth we have experienced,’ says the senior economist.
Anti-growth
Colijn thus wonders to what extent democracy will come under pressure in the event of an economic contraction over a longer period of time. “It’s a difficult question to voluntarily address it together.” Especially since there can be important side effects of economic growth that you miss.
“It is a difficult question to voluntarily go through a period of economic contraction for a longer period of time”
BNR internal economist Han de Jong stressed that he is a supporter of economic growth, but feels a sense of shame due to the rise of the anti-growth movement. According to De Jong, however, lumping economic growth, materialism and selfishness under the same umbrella is a misconception of that movement. ‘Growth, beyond a certain level of prosperity, is no longer about things.’
No growth, but progress
However, there are also dissenting voices who argue that steady growth is not essential. Partly because economic growth can come at the expense of, for example, the climate and the environment. For example, according to Colijn, techno-optimists advocate less growth, but progress. “They hope that technological progress will allow us to turn the polluting growth machine into something green,” she explains. However, Colijn wonders if this change will come soon enough to meet climate goals.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
