Economic dillema

[ColorCodePurple]

Hey guys,recently I had a a talk with my economics teacher regarding economic development.

The very nature of this development is confusing I cannot understand why do we get happy when we see a rise in economy. Clearly a rise in economy means a rise in production,which means a rise in consumption ofand wasteage of resources. is that a good thing?

 

Take a hypothetical example of the automobile industry,Mr X used to buy a car every 5 years but due to a fantastic rise in income he started changing cars once every year now which means he started buying 5 times the cars meaning a rise in production,boosting the economy but rise in production also means that the industry consumed 5 times as much resources and 5 times as much cars were wasted.

 

Does this not mean that it isn't necessarily a good thing to have a rise on economy? An uncontrolled economy going by my reasoning would only give a temporary bliss until resources get extinguished and the graph takes a humungous dip.

 

Does that not mean that the government should put a leash on the growth rate and push for a sustainable economy?

Views please

 

Sent from my HTC

[Sackboy]

Bro everything has their pros and cons not everything can be perfect .. your Mr.X's quality of life must have certainly improved ...

 

also WHEN IS THE NEWSPAPER COMING OUT BEECH !!!

[Sackboy]

An uncontrolled economy going by my reasoning would only give a temporary bliss until resources get extinguished and the graph takes a humungous dip.

 

Does that not mean that the government should put a leash on the growth rate and push for a sustainable economy?

 

 

Bro that risk is always there but not far a very long time presently ,, if we stop our economical growth , China will certainly conquer us ,, it is the situation grow or get slaughtered ...

[ColorCodePurple]

Bro everything has their pros and cons not everything can be perfect .. your Mr.X's quality of life must have certainly improved ...

 

also WHEN IS THE NEWSPAPER COMING OUT BEECH !!!

It's not about pros and cons,uncontrolled rise in economy is only temporary,after that when resources get extinguished its down

Look at it this way you are a living being having 10 days of lifespan would you prefer 5 rs for a day and then rest of the days without money or 0.5 rs per dayvfor your whole life?

[killzone123]

 

Take a hypothetical example of the automobile industry,Mr X used to buy a car every 5 years but due to a fantastic rise in income he started changing cars once every year now which means he started buying 5 times the cars meaning a rise in production,boosting the economy but rise in production also means that the industry consumed 5 times as much resources and 5 times as much cars were wasted.

 

 

i want the same job that mr x has

[Zeehunter]

i want the same job that mr x has

[alphabeta]

 

Take a hypothetical example of the automobile industry,Mr X used to buy a car every 5 years but due to a fantastic rise in income he started changing cars once every year now which means he started buying 5 times the cars meaning a rise in production,boosting the economy but rise in production also means that the industry consumed 5 times as much resources and 5 times as much cars were wasted.

 

Very bad example and flawed understanding. This is not how the real world works.

 

Yes, improvement in economy would mean more disposable income to everyone and more spending and hence more resources consumed. But then resources are also finite. So this would mean that cost of these resources will go up. So Mr. X may be able to buy only one car even though he is still making more money.

[CM Sunny]

Hey guys,recently I had a a talk with my economics teacher regarding economic development.

The very nature of this development is confusing I cannot understand why do we get happy when we see a rise in economy. Clearly a rise in economy means a rise in production,which means a rise in consumption ofand wasteage of resources. is that a good thing?

 

Take a hypothetical example of the automobile industry,Mr X used to buy a car every 5 years but due to a fantastic rise in income he started changing cars once every year now which means he started buying 5 times the cars meaning a rise in production,boosting the economy but rise in production also means that the industry consumed 5 times as much resources and 5 times as much cars were wasted.

 

Does this not mean that it isn't necessarily a good thing to have a rise on economy? An uncontrolled economy going by my reasoning would only give a temporary bliss until resources get extinguished and the graph takes a humungous dip.

 

Does that not mean that the government should put a leash on the growth rate and push for a sustainable economy?

Views please

 

Sent from my HTC

 

mr.x buying more cars would lead to a rise in automobile sector.

as the industry does well, it creates new job opportunities

job opportunities is inversely proportional to unemployment which is directly proportional to suicide rates

We can't stop using resources,

we find alternate ones to lessen the effect

it's the cycle of nature

resources gets exhausted ------> resources are renewed by earth

if not for us humans then for some other species

[CM Sunny]

Hey guys,recently I had a a talk with my economics teacher regarding economic development.

The very nature of this development is confusing I cannot understand why do we get happy when we see a rise in economy. Clearly a rise in economy means a rise in production,which means a rise in consumption ofand wasteage of resources. is that a good thing?

 

Take a hypothetical example of the automobile industry,Mr X used to buy a car every 5 years but due to a fantastic rise in income he started changing cars once every year now which means he started buying 5 times the cars meaning a rise in production,boosting the economy but rise in production also means that the industry consumed 5 times as much resources and 5 times as much cars were wasted.

 

Does this not mean that it isn't necessarily a good thing to have a rise on economy? An uncontrolled economy going by my reasoning would only give a temporary bliss until resources get extinguished and the graph takes a humungous dip.

 

Does that not mean that the government should put a leash on the growth rate and push for a sustainable economy?

Views please

 

Sent from my HTC

 

mr.x buying more cars would lead to a rise in automobile sector.

as the industry does well, it creates new job opportunities

job opportunities is inversely proportional to unemployment which is directly proportional to suicide rates

We can't stop using resources,

we find alternate ones to lessen the effect

it's the cycle of nature

resources gets exhausted ------> resources are renewed by earth

if not for us humans then for some other species

[playstationdude]

Very bad example and flawed understanding. This is not how the real world works.

 

Yes, improvement in economy would mean more disposable income to everyone and more spending and hence more resources consumed. But then resources are also finite. So this would mean that cost of these resources will go up. So Mr. X may be able to buy only one car even though he is still making more money.

+1.

Different people have a different perspective of viewing economic growth.Depends mainly on what angle you are looking at it from.

For example one may argue that economic growth has improved the lifestyle of people but at the same time no one can deny the fact that growth has led to the widening of the economic gap between different sections of the society.The rich is getting richer while the poor is hardly able to get a decent meal.Certainly I cannot expect the economic growth to be halted altogether but I can definitely check the cost versus the potential result of the development.

Like I said its how you perceive growth.I cannot argue with the fact the its because of economic growth that i am able to afford a computer today but someone else might argue that economic growth has increased the price of basic commodities so much so that it has totally screwed their budget.

 

I know it sounds messed up but hey, what else do you expect me to post at 3AM?

[CM Sunny]

I know it sounds messed up but hey, what else do you expect me to post at 3AM?

I am going to sleep

[Man In The Box]

Nice point of views by everyone. Ezio just wrote exactly what I was about to type . Man, this is one reason why i always loved Economics. It is one subject where every person is free to come with their own conclusions and nobody is wrong.

[El Tigre Chino]

Does this not mean that it isn't necessarily a good thing to have a rise on economy? An uncontrolled economy going by my reasoning would only give a temporary bliss until resources get extinguished and the graph takes a humungous dip.

 

Does that not mean that the government should put a leash on the growth rate and push for a sustainable economy?

Views please

 

Sent from my HTC

The Goverment is always controlling the growth rate in the country. The Economy is anything but uncontrolled. The amount of cash in the market is controlled thru OMOs,CRR,SLR,etc. These rates change every couple of weeks to control the inflation and deflation in the country. Then there are the Chapter 6A deductions which get people to invest their excess cash in various development plans, medical insurance, LIC, etc.

 

Managing the economy is craaaazzzy business.

[devil_angel]

Your argument is fallacious. You consider one end of the stick in your example, but neglect the the other end. If you consider the missing end, then the increase is justified.

[RedLotus]

srry for off topic but dude OOOOsome avtar +1

 

lord save the jewish pokemon

[ColorCodePurple]

Very bad example and flawed understanding. This is not how the real world works.

 

Yes, improvement in economy would mean more disposable income to everyone and more spending and hence more resources consumed. But then resources are also finite. So this would mean that cost of these resources will go up. So Mr. X may be able to buy only one car even though he is still making more money.

Ok,so you are saying that with increase in demand of cars there is a rise in demand of resources,but only because there is a rise in demand of resources cost of resources goes up. In that case how come we experience rise in production and hence an increase in growth rate at all?

Increase in cost of resources is an end point which comes because of overusage and this leads to a fall in growth rate,when resources get scarce due to overusage

 

I think you should correct your understanding first,no offence

 

Your argument is fallacious. You consider one end of the stick in your example, but neglect the the other end. If you consider the missing end, then the increase is justified.

What missing end? With the way resources are being consumed the only foreseeable end is there scarcity in the future and hence the economy falling like a pack of cards

[El Tigre Chino]

I think you are confusing Standard of living with growth rate which has more to do with the per capita income rather than how nice ones car is. They are interconnected but not the same.

 

Like i said in my previous post, there's always inflation and deflation in the country, The government balances out both to control the price of various commodities in the market. When the costs go the excess liquid cash is absorbed from the market, Interest rate on loans are increased which increases the interest rate on savings,etc. Less money in the markey = less demand = Drop in the cost.

 

Then again these changes affect only sane, non wasteful individuals(in terms of money).

[prakhar]

Growth= Progress.

 

Growth is necessary and is need for people to progress and live a better life than they did before. Yes it puts pressure on resources ,but hey when you are progressing, you come up with new tech and methods to renew and find new resources, its all in balance.

 

In today's world SUSTAINABLE DEVELOPMENT is the key aspect.

 

 

No development, No Progress.

 

Also this debate of resources vs growth is like Man vs Woman. Never ending, with no conclusion. Just need Balance.

[CM Sunny]

erm guys......even i posted an argument,

how about a rebuttal ?

[Nemo]

1st observation. Vyom, you really need to discuss things in depth with your teacher rather than looking for an interwebz conference.

 

secondly, going back at your question

 

I cannot understand why do we get happy when we see a rise in economy. Clearly a rise in economy means a rise in production,which means a rise in consumption ofand wasteage of resources. is that a good thing?

 

 

Does this not mean that it isn't necessarily a good thing to have a rise on economy? An uncontrolled economy going by my reasoning would only give a temporary bliss until resources get extinguished and the graph takes a humungous dip.

 

Does that not mean that the government should put a leash on the growth rate and push for a sustainable economy?

Views please

 

you are looking at this the wrong way, or rather looking it from a very skewed perspective.

Economic growth paves way for innovation. Yes it consumes a lot but because of that consumption and then the added fear of exhausting the said resource few decades down the line and in order to reduce costs of productions and/or catering to a larger market (5 cars like you said), minds are put together to find alternative and more efficient means.

 

the best example is the Formula 1 racing. Anyone can see that it is the most obscene and extravagant wastage of money and precious resource (fuel) across any field, yet if it were not for the engineers involved in it, the auto industry would not have evolved to a point where in few years we are thinking of bio fuels as standard. and not just the automobiles, the technology used in building of those machines have indirect benefits in other fields of the industry too.

 

so there you go, economic growth is imperative to felicitate the growth of innovation and mankind, for unless you see a tangible benefit for your labor (monies $_$) you will seldom put your best effort.

 

now speaking about the sustainable level of growth, well that is an another matter (but equally important). Steps should be (and are: see Jairam ramesh) taken by the governments across the globe to not let the mad dash for money and power go out of bounds so as to harm the environment. Both growth and geography has to co exist.

 

 

and the govt DOES put a leash to stop uncontrolled growth.. but that largely is to protect the trade, China for long as been devaluing their currency to be the cheapest seller in world market. US failed to check the housing sub prime boom and suffered the crisis of 08. Indian economic brains thankfully had the wits to not be carried away by allures of easy and cheap loans and thus kept the banking policies strong and as a result we were one of the few big economies to go largely unscathed in the aforementioned crisis.. etc etc.