Lecture Notes on Exponential Growth and the Global Economy

Introduction

Concept of Exponential Growth
- Example: A magical gold coin doubling every 25 years.
- 75 years = 8 coins; 1,000 years = over a trillion coins.
- 4,600 years = coins would outweigh the observable universe.
Exponential Growth in the Global Economy
- The global economy has been growing exponentially for 200+ years.
- Belief that continuous growth is necessary to improve lives.
- Concerns about non-stop growth on a finite planet.

Methods to Grow the Economy
- Produce more goods.
- Innovate and create new goods.
Economic Inputs and Outputs
- Inputs: labor, capital (money), and natural resources.
- Outputs: value.

Resource Consumption
- Growing economies need resources and energy.
- Concerns about running out of resources.
Efficiency and Technological Advances
- Economies have become more efficient over the past 200 years.
- Technology increases efficiency but can also increase demand.
Environmental Impact
- Economic growth is driving climate change.
- Destruction of natural environments (forests, fisheries, etc.).

Optimistic Viewpoint
- Belief in human ingenuity and new ideas solving problems.
- Example: Germany increased GDP by 16% while reducing CO2 emissions by 12% (2000-2014).
- Not fast enough to meet climate goals like limiting warming to 1.5°C.
Post-Growth Economy
- Suggestion to move away from growth-focused economies.
- Focus on renewable energy, healthcare, public transportation.
- Proposals for rich countries: guarantee living wages, reduce inequality, universal access to public services.

Defining Necessities
- Who decides what's necessary?
- How to handle disagreements and potential industry reductions?
Political Feasibility
- Changing economies is politically challenging, especially in rich countries.

Balancing Growth and Sustainability
- Need solutions that benefit everyone and protect the planet.
- Tension between current growth models and sustainable practices.