Why a company or a country MUST growth ?

Question

If a country has always the same population or a company the same loads, why must it growth ? Is there an economical reason ?

Answer 1

there is a misunderstanding in this term.
that it must grow means, that it must add, what they lose on the other end. If you just sit and do nothing, a company or country will die.
So you need to be active and add, what you lose.
For example: people die. so you need birth on the other side.
A company may lose a client, so you need to get another client.

Of course, you could argue, why cant they just hold the exact 1:1 relation between losing and adding. Because its impossible.
Its easier, to put more effort in the "adding", to overcome what you lose on the other side, then to try for a 1:1 situation.

On a other note:
Its in the humans nature, to grow. If you start a company just with you and one more worker and one client, you sure want to expand and have more clients. Its in your nature. Humans are never happy with what they got. They always want a progress.
Thats ok. The day you rest, the day there is no progress, the day you stand still, you actually moving backwards, because the rest of the world is moving forward.

Answer 2

There is an economical reason for growth in a capitalist system, for sure. It cannot sustain itself without growth. Lets take a simple example:

Assume there is a country with 1000 people in it. It is a capitalist system, where goods and services are produced and sold at a profit. Each person in the country averages $1000 per year income. This means that there is $1,000,000 available to spend on goods and services per year, as that is the amount of money earned.

Let's also assume that this country produces all the items necessary to live in this country and imports/exports nothing.

Since every person in the country producing goods or providing services is paid, then that cost is reflected in the price of the goods/services sold, plus a profit. If the cost of a product is equal to the cost to produce it plus profit, then the product must be sold for more than the people were paid to produce it. If profit is 10%, then if a person is paid to produce something, it must be sold for what it cost to produce plus 10%. If all the goods services are sold within the borders of the country, then the most that could be sold in a year would be the amount available to buy the products, $1,000,000, since that is all the money made by the people in the country in a year. If you add 10% for profit, then the items will sell for $1,100,000, which is 10% more than the money availble to buy these products. The people of the country only have enough money to buy 90% of the products produced.

This means that the people must either borrow money to pay for the extra 10% that products cost or the products must be sold to someone else, outside the country, with more money (growth).

Another alternative seems to be the republican system, where you borrow $1000 today and pay back $1100 in the future when the money is devalued because of inflation, so the $1100 used for the pay back is with money that has less purchasing power than the $1000 originally borrowed (inflation).

Scary. We are heading for some very significant inflation in the next 10 years or so. The way the Bush gov't is borrowing money at taxpayers expense (since taxpayers must repay this money) to ensure that he and a very few of his buddies will stay rich and powerful almost ensures that tremendous inflation will happen. The only way to pay back a debt of that size is to pay it back with money that is worth less than the money borrowed. Inflation will take care of that. For example, you charge 1000 gallons of gas at $1.00 per gallon at 10% interest. This means you have spent $1100 ($1000 for gas and $100 for interest). Inflation raises the price of gas to $3.00 per gallon. You sell enough gas to pay back the $1100 for the loan, 367 gallons of gas at $3.00 per gallon, and pay back the loan. You still have 633 gallons of gas and the person you borrowed the money from has only enough money to buy 367 gallons of gas, even though he has an extra $100 profit because the money he originally lent you had the purchasing power to buy 1000 gallons of gas. Because of inflation, you end up with 633 gallons of gas for free! If you apply that same logic on a national scale, you will be able to pay off the mutli-trillion (quadrillion) dollar national debt with money that is pretty worthless by today's standards.

Without growth, a capitalist system cannot sustain itself. You must either expand to new markets or inflate the money so that it absorbs the 10% profit margin.

Whew! Hope that clears it up a little.

Answer 3

Nothing in life is ever unchanging. The old saying is that if you are not growing you are dying and that is pretty true in a very real way. As I said .. since nothing ever stays the same (life is always about change) if a thing is not growing it must be shrinking.

Answer 4

The word is 'Expand' not growth!
Imagine how it would be if you had a company,
or Country living in the stone age?
You would not have the necessities you need for living.
Expansion is fact of life...

Answer 5

Uh it grows bcus of A.) the population or loads have increase! B.) It grows to expense! n C.) y should u care? o n CDB, the user, yea his picture looks like a damn hit man mugshot!

Answer 6

Companies must grow or they will be eaten by other companies.

Countries must grow or they will be invaded.

It's about power. But to truly understand, read Marx.

Answer 7

because this hole world wont have anything we wont have food clothes nothing that why u should have a country and a company so every one can work at it

Answer 8

It seams obvious, it is natural that people
expand their horizons and take on new challenges.thus resulting in change, growth
and adaptation.
I think this is part of the beauty of life.

Answer 9

Country to grow for its civilans

and

Company to gro for its employee..