Economics and Earth
April 30th, 2007 by lamenteI had a very fruitful discussion with one of my close friend after dinner tonight.
It revolves around one huge topic which I have always been interested in: economics
And it all started with this very simple question:
Is the world economy constantly growing, or is it constantly depreciating, or is it staying constant all the time?
We all know that world economy, in general trend, is always constantly growing. There may be some market crashes or economic depression once in few years, but eventually after those corrections, world economy will grow to yet another higher level never tested before.
Then another question kicks in. How can the economy keep growing? Does the world economy follow the law of conservation of energy, that is energy can neither be created nor destroyed? In this case, does economy can keep growing by itself? Or does it grow in the expense of something else to keep it running? What is that something else?
A very tricky question.
We both conclude that the world economy does follow the law of conservation of energy. Economy cannot constanly growing without feeding on something, which, according to us, is our own earth. The world economy indeed grows in the expense of our beloved earth. Earth is the source of all raw materials needed in all industries, which move the economic wheel of a country, and eventually move the economy of the whole world.
A very scary fact, considering that we only have one earth.
Then the question, how long can the world economy keep growing? Or in other words, when will our earth fail to feed us?
What’s in your mind?