<p>When there is no growth, economy goes bad, unemployement increases, consumption decreases, even in a situation where population is not growing. Why ? <br>We could imagine that without growth, the country will perform in 2016 the same way as in 2015: same production, same unemployement, same incomes.
<br><b>What is the fundamental reason ?</b></p>

CC BY-SA 3.0
2016-07-22T18:27:28.843Z
Productivity has tends to rise over time so zero growth may then lead to increased unemployment and reduced consumption from those unemployed, and their unhappiness may exceed that of those who benefit from the increased productivity.
Henry
CC BY-SA 3.0
2016-07-23T09:49:34.793Z
Thanks for your answer ! It explains indeed. Are there some other reasons or it is the main one?
Antoine A.
<macroeconomics><economic-growth>
Why do the economic system freeze when the growth is null
Antoine A.
# Why do the economic system freeze when the growth is null

(Asked by: username_0 on 2016-07-22)

When there is no growth, economy goes bad, unemployement increases, consumption decreases, even in a situation where population is not growing. Why ?   
We could imagine that without growth, the country will perform in 2016 the same way as in 2015: same production, same unemployement, same incomes.
  
**What is the fundamental reason ?**

**Tags:** macroeconomics, economic-growth

> **Comments:**
> **username_1**: Productivity has tends to rise over time so zero growth may then lead to increased unemployment and reduced consumption from those unemployed, and their unhappiness may exceed that of those who benefit from the increased productivity.  
> **username_0**: Thanks for your answer ! It explains indeed. Are there some other reasons or it is the main one?  

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## 0 answers

