Long term modelling

An article on the BBC site discusses the long term impact of the current financial crisis, if the economy keeps growing at 2.2% per year. In short, the the economy grows its way to far more wealth, and the current situation is just a small bump on the road.

But when you start by assuming 2.2% pa growth forever, what does it matter? Growth is what everyone agrees we need, and what everyone claims to be trying to create. Given that it seems to be the variable that people are trying to exert some control over, it seems odd to start by holding it constant. Perhaps the only really valid conclusion from this article is that growth really is a good thing – but I don’t think that was ever in doubt.

Advertisements
Post a comment or leave a trackback: Trackback URL.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: