Abstract
There are many indications that the era of economic degrowth has already begun, despite conscious policy efforts to maintain it. This indicated by a secular decline in the rate of GDP growth for essentially all OECD countries and many developing ones over the second half of the twentieth century. I believe that this phenomenon has occurred because the mature economies of the world have confronted a set of internal, or social, limits driven by the internal dynamics of capital accumulation and by approaching biophysical limits. These patterns are likely to continue. The purpose of this paper is to synthesize the literature on internal limits to capital accumulation and economic growth with the emerging literature on biophysical limits. Growth-oriented mainstream economics is incapable of analyzing adequately the historical conjuncture of the internal and biophysical limits. A study of heterodox political economy and institutional economics is needed in order to understand the transition to sustainability. The paper surveys prior theories of the internal limits to economic growth and synthesizes them with future potential limits imposed by the decrease in availability and increase in cost of high-quality resources, climate change and peak oil.
Highlights
Economic Growth is the Holy Grail of mainstream macroeconomics
I believe that this phenomenon has occurred because the mature economies of the world have confronted a set of internal, or social, limits driven by the internal dynamics of capital accumulation and by approaching biophysical limits
The purpose of this paper is to synthesize the literature on internal limits to capital accumulation and economic growth with the emerging literature on biophysical limits
Summary
Economic Growth is the Holy Grail of mainstream macroeconomics. Growth developed in the post-World War II United States as an explicit strategy to meet social goals of maintaining employment, providing opportunities, and increasing material standards of living. Periods of faster economic growth resulted in greater levels of poverty reduction and more. 2013, Vol 1, No 1 rapid increases in income (Bluestone & Harrison, 2000). This strategy was successful from the 1940s until the 1970s when economic growth rates began to slow. The pre-1970 potential for growth was based in a unique set of circumstances. Access to plentiful and inexpensive oil, and mediation of competition and labor militancy led to a long era of rising corporate profits. The growth economy is already beginning its decline, and has been since the late 1960s, as measured by growth rates that have been increasing at a decreasing rate
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
