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? asked in Social ScienceEconomics · 1 decade ago

Why is an expanding economy such a great thing? Does it not always contract at some point?

It is inconceivable that it would "grow" forever

4 Answers

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  • Anonymous
    1 decade ago
    Favorite Answer

    What you are asking about are business cycles. They occur because of the inherent tensions in capitalist expansion. They occur roughly every 7 years (this holds for about the last 200 years), although interestingly they historically have increased in frequency. There are lots of theories about how and why they occur.

    Source(s): http://en.wikipedia.org/wiki/Business_cycles floodingupeconomics.wordpress.com
  • Anonymous
    1 decade ago

    Economy can grow as long as technology and skill of workers improve. Which is exactly what was happening in the Western economies for the last 300 years.

  • ?
    Lv 4
    1 decade ago

    the simple answer to this is yes it does contract or level out ... economies need to grow to keep up with population growth and gradually make all wealthier.

  • 1 decade ago

    Its constant fight.

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