The Unsolved Paradox of Economic Growth

So many economies aren’t growing like they used to. These days, growth is mainly fueled by things like expanding debt, super low interest rates, and consumer credit. Without constant outside help, a lot of economies just keep struggling and don’t really improve. What we’re seeing now is that modern economic growth seems to be all about financial tricks. This leads to a puzzling situation that nobody seems to have figured out yet: economies rely on debt to grow, but all that debt actually undermines long-term stability!

A paradox implies something puzzling that might have a solution. This is more of a design mistake that was evident from the beginning. But all agreed to turn a blind eye, since the benefits were short term. Perpetual economic growth as an expectation is like two hundred years old at most. Prior to industrialization, no civilization had structured itself around the idea that the economy would have to grow on an annual basis. The aim was for stability. Sufficiency. Then we constructed retirement systems on it, though. And pension funds. Sovereign debt securities. And housing markets. All of which take for granted that future growth will meet current obligations. Which is to say that growth isn't necessary for prosperity anymore. We must grow to serve the financial architecture that was constructed on the basis of forever perpetual growth. Debt IS what growth looks like when productive capacity has matured but the political system still demands expansion because without it the promises collapse..

The paradox is that debt must be destructive, and governments must always rely on new debt for economic growth. This is clearly the engineering of modern economic growth, and some countries need it because organic growth is often not fast enough to meet the expectations of the modern system. In essence, debt doesn't always end in paradox. Some countries have actually succeeded in turning debt into a productive resource and keeping pace with modern economic expectations.

The debt will default in its value, I think its more of a fallacy then a paradox.  The value of commerce is where true worth occurs, the excessive debt we see with nations is not from capitalist enterprise but often the monopoly the government has over national currency production.   Hence they produce debt, tax citizens but can take no responsibility for the positive gains of private business, government doesn't create profits only taxes it.

Basically it is just about growth for growth sake and nothing more. Like people assume Tesla is worth a lot, because the stocks are high priced and the value of the company is high, but the reality is that it's just a car company that sells bunch of cars, that's it, this is not really a huge deal of help to the world, and it would not even be a big deal if it wasn't for subsidies for climate change to make the world cleaner by giving EV cars tax breaks. So basically, the world is growing economically, in a fake way, we are not richer.

I think this is one of the biggest problems in modern economies today. Many countries now depend heavily on borrowing, printing money and credit just to keep businesses and consumers spending. It may help the economy grow in the short term, but too much debt can later create inflation, instability, and financial pressure. For instance someone using loans and credit cards to maintain a good lifestyle. Things may look fine for some time, but if the debt keeps increasing without enough real income or productivity, problems eventually start showing. That’s why many economies today look strong on the surface but still struggle with long term stability.

I think pretty much all countries right now are just stacking debt to keep their economy running and do nothing substantial to pay off the debt completely though. It's like we are just hanging within the line of bankruptcy and good economic growth. Any country that have high debt-to-GDP ratio don't really have clear way to pay the debt off. This describes the modern economy, everything runs with debt.

What do you expect in the states of developments where political elected leaders gets into office and dissolves the possible economy founations structures which their predecessors had laid that is positioned to striving the economy growths? I have come to figure something about this economy systems that as new governments emerges and so strict policies are implied, so it obstructs the previous structures to how it will suit their own governance and so on economy growths reshapes ahead to inflations leading to the economy struggling to review and so on as taxes increases, so also the fiats looses it values against international markets. So in my opinion, the economy system of governance had not been following a traditional system that indicates uninterrupted. And this very reason is why Bitcoin is very important to store our funds and as the case maybe, the engineering systems of how the market had proven itself proves Bitcoin market at it economy growths has a traditional marketing system which my historical record's had not been interrupted while still ramping on the halving. So the government structured economy will keep on evolving as new governace emerges with the the geopolitical sentiments and greeds.

This implies mainly in unproductive economies where the leaders best option is to go borrowing to fund unproductive expenditures, you will be marveled to know that a government will borrow to pay salaries which doesn't add anything to the economy in terms of the loan repayment. It is not bad for a country to take loans but what they want to use the funds for is what matters, if the loan is for profitable infrastructures then it is a good business plan because they will repay the loan from the profit made while the project will continue to generate more money for them. Unfortunately politicians will collect loans on behalf of the people for government projects and they will pad the budget to steal most of it in the end the project will be abandoned halfway because of lack of funding. They will need another loan to continue it and if they get it they will still steal most of it. This is why a lot of underdeveloped countries have become indirect slaves to China, because they cannot repay their loans and China, will be have to control a part of the economy to recover their money.

Debt increase is something that people did long ago, it is not now but it is growing to be a problem nowadays which wasn't back in the day. The logic is simple, you make 100 dollars today, you get 500 dollar loan, and now you start to make 150 dollars a day, so you pay that 500 dollars in 10 days with that extra 50 dollars. But instead of waiting, in a week, you decide to get 1000 dollars more debt, so you make 200 dollars a day, and now you pay 100 dollars back to your debt, but 50 was already going to previous one for a while. And long story short, you grow more and more and more debt, and you get more and more revenue. The moment you can't pay, you bankrupt, enough companies can't pay, and economy sucks. This is how everything has been growing.

An economy based on growth is inherently finite, because the world is finite and the capacity of markets is finite, as Karl Marx noted. To grow, the economy has to build up debt. What is debt? This is growth taken from the future. It would seem that you can draw growth from the future indefinitely. But no, these debts have to be repaid when the economy gets into this future, which is becoming the present. The cost of debt service is only increasing. Perhaps the problem is not the need for constant economic growth. After all, the need to grow is only a consequence of the existence of an interest rate, that is, the usurious nature of debt. In fact, the entire economy works for the profits of banks (moneylenders) who appropriate and sell the future (which is not anyone's property).

For politicians, recession is equal to losing elections and by creating a debt, they are avoiding recession. Honestly, we basically stopped growing and started borrowing and now we call it a growth. Debt solves today's problem but it destroys tomorrow. It's like, putting a band-aid on the scar instead of stitching it. Taking a sleep pill when you want to sleep feels very good because it immediately fixes the problem but once you stop taking a sleeping pills, you get all the rebound withdrawal and now you feel much worse than before. You should fix the problem, you shouldn't use band-aid.

Current economies of the world have a major negative point and that is taking endless loans for growth. No doubt for expansion and financial growth debt helps a lot but when government taking loans at high scale with out any proper plannings then its becomes the main reason of instability of the countries. Some time expansion in revenue creat an illusion that finance is going well and its push to take more loan. But when the repayment time is comes then actual problems start and the finance is completely destroyed that time so then financial crises starts. Many countries gain sustainable growth through innovations and productions and by avoiding increasing debt. So your point rationally explains that why some countries prefer short term expansion over long term stability.