What are the boundaries of (economic) growth?

Question

This question is related to my previous question; Determinants of economic growth?

Answer 1

Modern economic theory suggests that there is no bound to growth. This is quite hard to believe considering we have finite resources, but if you consider growth as the increase in value of goods and services then maybe it isnt so far fetched. One simple example is that today a doctor with a scalpel can do a much better job much faster than a doctor with a scalpel in the late 1800's. The same physical resources are involved, but the modern doctor has more value. Of course the whole argument is based on the implicit assumption that knowledge is inherently infinite. I will let you decide that for yourself.

Answer 2

Your question needs to be clarified. Are we talking about absolute growth or per-capita growth?

Absolute growth definitely has limits; at some point, the whole Earth will be covered with human housing and fields, if the population keeps increasing. The expectations of ever-increasing population, however, are not realistic; we see population growth slowing throughout the world as countries undergo demographic transition. Chances are, the world's population will stabilize at 12-15 billion around 2100.

Per capita growth, however, is a completely different matter; it depends primarily on the amount of physical capital available to the average worker. Since physical capital tends to accumulate over time (not so much in quantity, but in quality; old machines are replaced with new, more productive ones), there is no reason to believe that per capita growth has any inherent limits...

Answer 3

A few of the limitations or boundaries of economic growth are:-

1) Technological advancement
2) Land
3) Labour
4) Capital
5) Enterpreneur
6) Atmospheric conditions
7) Geographical locations

As all these factors are limited for a country (beside the 1st one) in a sense that they are not unlimited or in abundant so thses are the few factors that put a boudry around the economical growth of a country.

Answer 4

All economic growth would translate into physical evidences because money is a mean to an end. Is your city getting too military-oriented? Is yoru city pushing into boundaries of your neigbourhood?