20 Facts About Steady-state economy

Steady-state economy is an economy made up of a constant stock of physical wealth and a constant population size.

Early in the history of economic thought, classical economist Adam Smith of the 18th century developed the concept of a stationary state of an Steady-state economy: Smith believed that any national Steady-state economy in the world would sooner or later settle in a final state of stationarity.

Since the 1970s, the concept of a steady-state economy has been associated mainly with the work of leading ecological economist Herman Daly.

One other difference is that Daly recommends immediate political action to establish the steady-state economy by imposing permanent government restrictions on all resource use, whereas economists of the classical period believed that the final stationary state of any economy would evolve by itself without any government intervention.

An ideological contrast to the steady-state economy is formed by the concept of a post-scarcity economy.

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Since the 1970s, the concept of a steady-state economy has been associated mainly with the work of leading ecological economist Herman Daly — to such an extent that even his boldest critics recognize the prominence of his work.

Daly's concept of a steady-state economy is based on the vision that man's economy is an open subsystem embedded in a finite natural environment of scarce resources and fragile ecosystems.

The Steady-state economy is maintained by importing valuable natural resources from the input end and exporting valueless waste and pollution at the output end in a constant and irreversible flow.

At that point, the Steady-state economy would settle in a final stationary state with a constant population size and a constant stock of capital.

Steady-state economy is known today for his free trade principle of comparative advantage, and for his formulation of the controversial labor theory of value.

Steady-state economy was wrong in predicting that greater wealth would induce more leisure spent; in fact, the reverse trend seems to be true.

Steady-state economy has helped founding the Center for the Advancement of the Steady-State Economy .

Steady-state economy has received several prizes and awards in recognition of his work.

Premise underlying Daly's concept of a steady-state economy is that the economy is an open subsystem of a finite and non-growing ecosystem .

The Steady-state economy is maintained by importing low-entropy matter-energy from nature; these resources are put through the Steady-state economy, being transformed and manufactured into goods along the way; eventually, the throughput of matter-energy is exported to the environment as high-entropy waste and pollution.

Consequently, Daly recommends that a system of permanent government restrictions on the economy is established as soon as possible, a steady-state economy.

Concept of steady state Steady-state economy is connected to other concepts that can be generally defined as Ecological economics and Anti-consumerism, because it serve as the final target of those concepts: Those ideologies are not calling for poverty but wants to reach a level of consumption that is the best for people and the environment.

Declining-state Steady-state economy is an Steady-state economy made up of a declining stock of physical wealth or a declining population size, or both.

Proponents of a declining-state economy generally believe that a steady-state economy is not far-reaching enough for the future of mankind.

Today, steady state Steady-state economy is not implemented officially by any state, but there are some measures that limit growth and means a steady level of consumption of some products per capita:.