26 August 2009

Economic Models: Rethink Growth

This is a thought provoking discussion of alternatives to economic models with a continuous growth assumption.

The Next Evolution in Economics: Rethinking Growth - HBR Now - Harvard Business Review

In a cellular economy, key metrics change. GDP growth is less important than GDP regeneration. Successful growth takes into account the sustainability of that growth.

The most profound change in a cellular economy is the devaluation of the transaction. Today, economic value is determined primarily by the value of the transaction. To grow (even just to survive), we must keep trading, keep consuming--no matter how wasteful the process becomes--because success is creating more transactions. This keeps us locked into a linear, growth oriented paradox.

Posted by mofoghlu at August 26, 2009 12:39 PM | TrackBack
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