into account the risks posed by economic growth, they still see great opportunities to
improve human well-being.
The growth proponents continue to point out that growth is an essential condition
for the positive development of an economy. Many theoretical analyses and empirical studies show that the development of the labor market, that is, maintaining both
existing jobs and creating new jobs, depends very much on positive growth rates.
Also, the social security systems, especially with current demographic developments
in many industrialized countries, are substantially strengthened by positive growth
of the economy. Furthermore, it can be said that with positive growth rates, state
budgets grow and the state is able to better meet its increasing duties and expenses.
Finally, there is an argument proposed in the literature that with rising growth rates, a
redistribution of growth is more likely to gain acceptance than with stagnant growth
rates. In summary, economic growth, in principle, can be seen as a prerequisite for
the stability of market-based systems.
The opponents of growth are those who reject growth out of principle (Jackson
2017), as will be explained in more detail later. A growing number of growth
opponents, i.e., those representing degrowth, even demand a reduction in growth
(Latouche 2007, 2009, 2010). Finally, there is also a group of growth critics, who
demand an environmentally and socially balanced growth in the context of sustainable development (von Hauff and Jörg 2017). The critics of growth clearly reject
economic growth, primarily, because of the social risks or the environmental
pollution. The starting point for both proponents and opponents of growth is the
assessment of overall economic growth. The indicator used for this is gross domestic
product (GDP). However, both positions neglect the fact that in an integrated
economy, growth only happens in the ideal state. In reality, far more industries are
growing than those that are stagnating and those that are shrinking. This differentiation is indeed relevant for assessing progress. In the process, it should be noted that
the growth of individual sectors and industries is also characterized at times by
dynamic structural change (von Hauff and Parlow 2014).Looking further at the
relationship between growth and the environment, for example, an examination of
the growth sectors reveals some with a high environmental impact and some with a
relatively low environmental impact. From an economic perspective, at least, the
progress in the growth sectors can be seen as positive. Yet, if the growth sectors
contribute to a high degree of environmental pollution, the progress must be viewed
critically and, perhaps, even rejected as seen from the perspective of sustainable
development. Growth sectors such as health care, geriatric care, but also the
growing renewable energy sector all have a relatively low environmental impact
and could be categorized as “progress” from an economic, ecological, and social
point of view. A review of the growing polluting industries is needed to find ways to
transform them into environmentally friendlier sectors.
The advantages and disadvantages of economic growth should also be evaluated
from the perspective of demand, i.e., consumption. From the perspective of consumer sovereignty as one of the central paradigms of the neoclassical economy,
growth of consumption is seen as progress. According to the consumer sovereignty
paradigm, every person should be able to purchase and consume the consumer
1 Progress in Economic Thought: Neoclassical Economics Versus. . .
7
improve human well-being.
The growth proponents continue to point out that growth is an essential condition
for the positive development of an economy. Many theoretical analyses and empirical studies show that the development of the labor market, that is, maintaining both
existing jobs and creating new jobs, depends very much on positive growth rates.
Also, the social security systems, especially with current demographic developments
in many industrialized countries, are substantially strengthened by positive growth
of the economy. Furthermore, it can be said that with positive growth rates, state
budgets grow and the state is able to better meet its increasing duties and expenses.
Finally, there is an argument proposed in the literature that with rising growth rates, a
redistribution of growth is more likely to gain acceptance than with stagnant growth
rates. In summary, economic growth, in principle, can be seen as a prerequisite for
the stability of market-based systems.
The opponents of growth are those who reject growth out of principle (Jackson
2017), as will be explained in more detail later. A growing number of growth
opponents, i.e., those representing degrowth, even demand a reduction in growth
(Latouche 2007, 2009, 2010). Finally, there is also a group of growth critics, who
demand an environmentally and socially balanced growth in the context of sustainable development (von Hauff and Jörg 2017). The critics of growth clearly reject
economic growth, primarily, because of the social risks or the environmental
pollution. The starting point for both proponents and opponents of growth is the
assessment of overall economic growth. The indicator used for this is gross domestic
product (GDP). However, both positions neglect the fact that in an integrated
economy, growth only happens in the ideal state. In reality, far more industries are
growing than those that are stagnating and those that are shrinking. This differentiation is indeed relevant for assessing progress. In the process, it should be noted that
the growth of individual sectors and industries is also characterized at times by
dynamic structural change (von Hauff and Parlow 2014).Looking further at the
relationship between growth and the environment, for example, an examination of
the growth sectors reveals some with a high environmental impact and some with a
relatively low environmental impact. From an economic perspective, at least, the
progress in the growth sectors can be seen as positive. Yet, if the growth sectors
contribute to a high degree of environmental pollution, the progress must be viewed
critically and, perhaps, even rejected as seen from the perspective of sustainable
development. Growth sectors such as health care, geriatric care, but also the
growing renewable energy sector all have a relatively low environmental impact
and could be categorized as “progress” from an economic, ecological, and social
point of view. A review of the growing polluting industries is needed to find ways to
transform them into environmentally friendlier sectors.
The advantages and disadvantages of economic growth should also be evaluated
from the perspective of demand, i.e., consumption. From the perspective of consumer sovereignty as one of the central paradigms of the neoclassical economy,
growth of consumption is seen as progress. According to the consumer sovereignty
paradigm, every person should be able to purchase and consume the consumer
1 Progress in Economic Thought: Neoclassical Economics Versus. . .
7