Uneconomic Growth

= “uneconomic growth occurs when increases in production come at an expense in resources and well-being that is worth more than the items made”. [1]

Description

1. From the Wikipedia:

"Uneconomic growth, in human development theory, welfare economics (the economics of social welfare), and some forms of ecological economics, is economic growth that reflects or creates a decline in the quality of life. The concept is attributed to the economist Herman Daly, though other theorists can also be credited for the incipient idea.Note that economic degrowth is different from uneconomic growth (or uneconomic degrowth), it is meant as a reduction of the size of the economy that would bring well-being and sustainability, see http://events.it-sudparis.eu/degrowthconference/en/.

The cost, or decline in well-being, associated with extended economic growth is argued to arise as a result of "the social and environmental sacrifices made necessary by that growing encroachment on the eco-system. In other words, "[u]neconomic growth occurs when increases in production come at an expense in resources and well-being that is worth more than the items made." (http://en.wikipedia.org/wiki/Uneconomic_growth)

2. CASSE:

"Long before the economy threatens the resilience of ecosystems, economic growth can become undesirable. Much growth (i.e., increasing GDP) consists of “defensive expenditures,” products and services that counteract the negative consequences of other economic activities. An example of a defensive expenditure is the treatment of cancer caused by industrial pollution. Even assuming a product causes no direct harm to its user, its production inevitably contributes to the depletion of natural resources. The tradeoff between products and natural resources may be worthwhile when the economy is small, but as it grows, the additional products become increasingly costly. Through much of human history people have been made better off by having and consuming more things. In high-consuming countries today, however, the costs of increased production often outweigh the benefits. Further growth has become uneconomic." (http://steadystate.org/wp-content/uploads/CASSE_Brief_Sustainable_Scale.pdf)