r/PeterExplainsTheJoke 9h ago

Meme needing explanation Petah?

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u/crankaholic 8h ago

Sure, we're listening u/Captain_Pumpkinhead

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u/Budget-Ambassador203 7h ago

No need to task a random redditor with devising a new economic paradigm, turns out one or two discerning experts spotted the trouble with the whole "the economy can grow forever!" concept. They spotted it pretty early, in fact. Adam Smith literally wrote about this problem.

You should Google "steady state economy". 

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u/el_cid_182 6h ago edited 4h ago

I was unfamiliar with it, so I took a look on Wikipedia (hardly the most reliable or in-depth source, but it’s a fine beginning for most things) and I’m certainly no expert, but there is a glaring flaw in the base concept (just like capitalism/supply & demand break down with a very simple thought experiment, ie - the monopoly). In a stable state economy, it hinges on a “constant population size” which might seem ok on paper, but it’s something that goes against human nature. I’m unaware of any successful state-mandated population control, but I have heard of the One Child Policy and that wasn’t pretty.

EDIT: Some pointed out that population is trending towards a “constant size”, and it’s a fair point. And it’s true that in some developed nations, population rates can & have fallen below replacement levels.

My point stands that it’s no trivial thing to maintain a “constant population size”.

My comment wasn’t meant as a sweeping condemnation of “steady state economy” any more than monopolies are a sweeping condemnation of capitalism. Just because it’s a flaw, it doesn’t mean there is no solution.

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u/Phuka 5h ago

The One Child Policy was amazing if you like waterlogged daughters.