Journal Entry Economics of a Full World

Journal Entry Economics of a Full World - replenished....

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Journal Entry: Economics of a Full World According to the article, “Economics of a Full world”, modern economics does not account for the cost of the damage to the environment when calculating the total cost of production. Economic growth is not limited by the amount of labor, manmade capital or consumer demand anymore buy is limited by how many resources are available for production. This is the new theory of the economics of a full world. In his article, Roberts says that the modern theory of economics is based on “empty-world” economics. By this he means economists today believe that we are still only limited by the amount of labor, manmade capital, and consumer demand. However this is not true in a global economy. The problem is that we are able to create man-made capital faster than the natural resources are
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Unformatted text preview: replenished. Natural resources cannot be created or increased. Because of this natural resources are now a limit because the world is full and has to worry about how much resources can be allocated toward a certain product. There are some people aware that the limits to growth include the environment. This has resulted in laws that limit pollution. Even with the laws that have been put in place the corporations have been able to find ways to bypass the laws. The transnational corporations are globally mobile so they can always move to a country that does not have these laws that limit pollution in place. This makes the laws against pollution counterproductive to economic growth and creates a major problem for the countries that have these laws....
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