Comments on: Growth without Growth

By: Daniel Carins

Daniel Carins — Mon, 27 Oct 2008 12:10:34 +0000

Wendy,

What about a graph to show the contribution to GDP that military spending creates (with a long lag, I imagine)? Yes military spending may be difficult to swallow, but I’m sure I’ve read articles on the proportion of technological developments that came out of military research (the internet being the most famous), not withstanding the job creation that comes from military spending (aircraft and weapons manufacture etc).

Added on to that the training and development given to low ranking military personnel who would otherwise be on benefits (that if, if the state they serve has benefits…), so although paying their wages is a cost, it’s probably far more efficient to have them fighting wars (or rather sitting in a tent in Iraq playing Nintendo) but being trained, networking, motivated etc. rather than sitting at home playing Nintendo.

And Michael makes a good point about creativity and advertising. Surely a large element of the “creative class” works in advertising and PR, and yet these sectors have arguably done a lot to exacerbate desires and consumption based on the very credit that is now being crunched.

By: Michael S.

Michael S. — Sat, 25 Oct 2008 04:03:34 +0000

Is creativity itself culpable in this (over) consumption?

I’m thinking of all the “creative” marketing strategies that are directed at consumers to buy products?

Example: I never realized I could get a home equity loan to buy that big screen HDTV for sell at Best Buy until I saw the ad from my local bank promoting it. Hey…it’s tax deductable!!

As long as I can buy those big ticket items with “no money down and no interest or payments for 90 days” I’m going to consume now and worry about how to pay later.

WOW!! Americans are depressed and to feel better they buy “stuff”!!

By: Wendy

Wendy — Fri, 24 Oct 2008 15:44:43 +0000

Further thought on that graph — what if we took military spending out of the economic picture? Without the wars and consumers mortgaging their homes to buy things, would there be a growing US economy?

By: Wendy

Wendy — Fri, 24 Oct 2008 15:44:01 +0000

Fascinating graph. What it suggests to me is that the US economy now needs to enter a new paradigm — or perhaps return to an older one — based around producing goods and exporting services to the rest of the world, as well as for Americans.

This will require the US relaxing the psychological wall that politicians and lobbiests often want around the country. Blocking foreign imports often means blocking the most innovative new products and ideas from American people and companies. New ideas from abroad can inspire; or can be used by innovative Americans as ingredients in something even better. Having to compete creates the necessity for the invention of better things — that can then be sold abroad.