Fontana, G orcid.org/0000-0002-8055-5326 and Sawyer, M orcid.org/0000-0002-4565-5276 (2022) Would a zero-growth economy be achievable and be sustainable? European Journal of Economics and Economic Policies: Intervention, 19 (1). pp. 89-102. ISSN 2052-7764
Abstract
The argument for zero economic growth comes from environmental sustainability considerations. But can zero economic growth be achieved in a demand-driven economy? What are the macro conditions under which it could be achieved, and would it be sustainable? There is a range of issues which would have to be resolved if a zero-growth economy is to be achieved and sustained. The first concerns the routes through which net investment would be constrained to zero. The second relates to the issue of whether the rate of profit would go to zero in a zero-growth economy, and hence the question of whether zero growth is compatible with capitalism. Or are there routes such as continual budget deficits and reduced savings which would maintain a non-zero rate of profit? And then whether budget deficits and reduced savings are sustainable. The third relates to the nature of the banking system (and any related monetary growth imperative) and the implications of sustained zero/negative rates of interest. An outcome of zero growth would obviously involve a constant level of GDP (though not necessarily of economic and social activity). Would there be forces which generate a supply of labour larger than ‘full employment’, and would productivity continue to rise?
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2022 The Author. This is an author produced version of an article published in European Journal of Economics and Economic Policies: Intervention. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | zero growth; investment; profits; employment; budget deficit |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Economics Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 01 Apr 2022 11:33 |
Last Modified: | 01 Oct 2023 00:13 |
Status: | Published |
Publisher: | Edward Elgar Publishing |
Identification Number: | 10.4337/ejeep.2022.01.07 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:185273 |