Questions Regarding The State Type Economic Growth America Economics Essay
America today is committed to economic growth which is real but not paper work. Without economic growth, then growth is null or is not worth the name growth. Holistic economic growth need to consider social issues, political issues, foreign policies and above all is environmental issues.
To begin with environmental issues, Ozone layer has been destroyed by green house gases and the ecosystems impoverished making life not worth living on earth hence need for economic growth. The flows (conveyance of materials between storage and system part) have been interfered by human beings thus becoming a threat for human life (Grint, 2000). For example, the flow of water from the clouds to the soils has been interfered by cutting down trees. Storage, which refers to position where the materials stay for a long or extended period has also been polluted, for instance the soil’s ph is interfered by acidic rain making its production less. It is automatic that by interfering with the flow then the storage is hampered with also. Systematic dynamic refers to approach of understanding complex system’s behavior using stock, flows and feedback loops. With such an approach environmental issues have been curbed leading to economic growth in America as sustainable economy will be achieved since the environment is taken care of. After the recent economic crisis, Washington is currently coming up with political economy which is mindful of number of people and environment a part from increasing profits and growth which is actually economic growth. It is evident here that we need economic growth to sustain our environment for continued production (Speth, 2005).
Secondly, economic growth is pursued in United States of America since it leads to political transformation such that the nation is able to move from being with a weak democracy to having a strong democracy. Sustainable economy can only be achieved once the democracy is achieved to the fullest by all citizens (Speth, 2005). In addition to this, with political transformation real popular sovereignty will be achieved as undue corporate influence will be a forgotten issue. In America we are dying for economic growth as we know sovereignty is all that a powerful nation would like not to lose.
Thirdly, such a sustaining economy has much to be embraced socially. With economic growth, economic insecurity will end automatically leading to economic security. An economy that is secure is all that we want in America, such that it should be able to provide resources at all times without collapsing. If the environment is not considered this will just be a dream as the economy can collapse if the environment is not maintained for continued production. Economic growth leads to equal distribution of resources as we shall have enough thus distributing them to all citizens leading to reduction in inequalities hence a happy nation (Friedland, 2001 ).
Fourthly, indicators of progress like Net Domestic Product (NDP) will be considered as accurate measures due to good environment and quality life for the citizens since with sustainable economy coming as a result of development will make indicators of progress achievable and not paper work as they have been many times since there will be less environmental interference in production. Consumption is said to be sufficient and mindful of all citizens when we have a sustaining economy making Americans demand economic growth if not want (Speth 2005).
In conclusion economic growth is all that all nations demand since it is a sustainable growth leading to bottom up development, social development, political development, economic development as shown by indicators of progress among others. It is evident that for successful economy, matters pertaining to conserving environment are vital and should not be neglected by anyone.
Heinberg’s argument about the economy is already finished is based on several factors which are actually evident in our eyes if we look around. Heignberg considered many factors such as sustainability of the economy, employment creation, purchasing power, use, and future existence of resources, lending power of financial institutions, dependence, oil prices among other factors as discussed by this paper.
Resource reduction is seen to be high due to increasing population as a result of extraction of raw-materials, manufacturing and consumption (Grint, 2000) .Continued use of resources without resources will lead to depletion of them (resources) hence no more production leading to finished growth of economy. Resources are seen to be consumed more than they are invested, by not investing resources it means that in the future resources will be few leading to limited production hence a finished economy as few resources cannot satisfy the existing monetary claims which are unlimited. With such limited resources majority of the people are going to have no or few resources and the few who are actually the rich will have the resources leading to unequal distribution of resources hence finished growth of economy.
In the year 2008, the United States of America’s economy went down. Since it has a strong economic base it is obvious that its downfall is worth the word growth of economy is finished. During this year (2008) employment went down and purchasing power went down (Heinberg, 2003). Early 2010 and late 2009 increasing rates of extraction and manufacturing were embraced by several industries. It is clear that economic sustainability will not be realized since if solution to development is brought by extraction of resources then the economy is finished as such resources will deplete. Such an economy is said to be in tatters as it depends on what it will end thus not sustainable. Also if the economy of America is to be measured using the rate of consumption and that of production, the level of the economy will not be upward but downward hence we see a finished economic growth (Heinberg, 2003).
Oil prices have also been increased showing that the growth of economy is finished as it is a significant indication to how our economy is. During the early 2008, the spike of prices made companies to suffer leading to low employment to those who worked on such related areas. It is automatic that low employment leads to low production thus a threat to economic growth. Later in the same year, prices of economy rose high to an extent of wanting to nip economic recovery of late 2008 (Heinberg, 2003). If oil prices can destroy our economy instead of building then economic growth is finished if this will be the trend.
It is also evident that when financial institutions for example banks had no money to lend to the public due to reduction in employment making people not to save money in the banks as a result of too little money to be to be saved, economic growth was seen to be finished (Handy 1985). People are not saving as a result of bad spending habits by not following a scale of preference. Without investments in the bank by the people the growth of economy is worth the statement it is finished. End of growth in Chinas economy showed that the growth of economy is finished as seen by Heignberg
To summarize my paper, I agree with Heignberg that the growth of economy is finished but a finished economy should not worry us since statistics show that life in equilibrium state economy is better than life in a developed economy also the end of the world is not marked by a finished economy.
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