Original Source: financialpost.com
In a world where economic growth is as vital as the air we breathe, Philip Cross reflects on the insights of Oxford economics professor Daniel Susskind, who explores the historical significance and necessity of sustained economic growth. Historically, economies have lurked in a stifling cycle of stagnation, with brief moments of prosperity muddled by collapses due to external forces like wars or natural constraints. Susskind’s exploration reveals how this zero-sum mentality has pervaded cultures, leading societies to believe that one’s gain is another’s loss, ultimately extinguishing the spirit of capitalism and innovation.
The implications become starkly clear: when economies falter, the allure of revisiting wealth redistribution becomes tempting, but it merely drains vitality from burgeoning entrepreneurial spirit. Susskind vehemently critiques the rising de-growth movement, warning that it offers a deadly embrace of recession that endangers democratic values and invites autocratic temptations, reminding us that true prosperity is not a privilege for the few. Through a historical lens, he navigates the evolution of growth theories, leading us to appreciate the sheer audacity of the idea that sustained economic growth is not only possible but essential.
What fuels this paradox? As Cross posits, while economists have scratched the surface in understanding growth dynamics, the deeper mystery remains elusive. Innovation, human capital, and the right cultural ethos are necessary ingredients for success, yet these are often overshadowed by a resurgence of fear in the absence of growth. This battle against the zero-sum narrative becomes a crucial part of preserving healthy, democratic institutions and fostering trust, without which the foundations of capitalism tremble unsettlingly.
In conclusion, while discipline around economic growth can be complex and multifaceted, it remains an indispensable goal that we must pursue actively. As Canada—and indeed every nation—navigates the state of its economy, the reclamation of the spirit of capitalism becomes paramount, fostering innovation while dispelling the demoralizing myths of scarcity. The lessons learned delve deeper than mere economic theory; they beckon us to imagine a thriving future where growth is a shared journey, rather than a divisive race.
The article dives into the necessity of sustained economic growth, as highlighted by Oxford economics professor Daniel Susskind in his book, “Growth: A History and A Reckoning.” It contextualizes economic growth within historical frameworks, addressing how societies tended to view economies as zero-sum games before the Industrial Revolution, leading to stagnant cultural narratives. It spotlights the implications of failing to prioritize growth, particularly during economic downturns, and discusses the evolution of growth theories within economics.
The essence of the article crystalizes into a penetrating insight: sustained economic growth is not merely an economic imperative but a cornerstone of democratic values and societal advancement. By dismantling the chains of the historical zero-sum mentality, societies can embrace a more abundant future where innovation thrives, trust deepens, and collective wealth expands, creating ripples of prosperity across all levels. Bound by a shared vision, we can navigate beyond stasis to reclaim and redefine the spirit of capitalism.
