Can’t technology alleviate the threat of economic growth?
Some economists think that, because a particular production process can become more efficient (more output per unit of natural capital), there is no limit to economic growth. These economists and “technological optimists” are disregarding the second law of thermodynamics, the entropy law, which tells us that we cannot achieve 100% efficiency in the economic production process. When the entropy law is applied across all economic sectors, or in other words when the limits to efficiency have been reached, the only remaining way to grow the economy is by using more natural capital (including energy). The application of technology, if embedded in a system of economic growth, also sets up a dangerous cycle. The first step in this cycle is characterized by economic growth, expanding population and consumption. Such expansion leads to the second step — a situation in which society begins to bump up against the limits to growth, in the form of dwindling supplies of resources. Since necessity is
Related Questions
- How advances in telecommunication and new technology significantly contribute to economic growth over time can effects production possibilities?
- Why is economic growth a threat to economic sustainability, national security, and international stability?
- Can technology alleviate the threat of economic growth?
