Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/278889 
Authors: 
Year of Publication: 
2023
Series/Report no.: 
IZA Discussion Papers No. 16191
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
The Degrowth Movement calls for "degrowth" – a reduction in GDP in advanced economies – to avert an ecological crisis. This paper argues that the Degrowth Movement misses that the West is already in a state resembling degrowth – a Great Stagnation. This state of degrowth and its correlates, declining entrepreneurship, innovation, science, and research productivity, are described. It is concluded that the notion that a degrowth economy can generate the technological progress necessary to tackle ecological and social crises and challenges is far-fetched. Moreover, as economic stagnation has taught, the consequence of degrowth is a zero-sum society: redistribution, instead of production, becomes the basis of the economy. In such a context, more degrowth will only make problems worse. This paper concludes by discussing scenarios for moving beyond Degrowth. Whether collapse or unimaginable riches through breakthrough technological progress will be the future, these scenarios suggest that there is more to humanity's future than envisaged by the Degrowth Movement.
Subjects: 
economic growth
Degrowth
ecology
sustainable development
collapse
JEL: 
O40
O33
D01
D64
Document Type: 
Working Paper

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