A steady state economy is an economy of relatively stable size. It features stable population and stable consumption that remain at or below carrying capacity. The term typically refers to a national economy, but it can also be applied to the economic system of a city, a region, or the entire planet. Note that Robert Solow and Trevor Swan applied the term steady state a bit differently in their economic growth model. Their steady state occurs when investment equals depreciation, and the economy reaches equilibrium, which may occur during a period of growth.
Read more about Steady State Economy: Physical Features, Limits To Economic Growth, History of The Concept, Benefits, Policies For The Transition, Criticisms
Famous quotes containing the words steady, state and/or economy:
“The history of mankind interests us only as it exhibits a steady gain of truth and right, in the incessant conflict which it records between the material and the moral nature.”
—Ralph Waldo Emerson (1803–1882)
“I also believe that few people remain completely untouched by the thought that instead of the life they lead there might also be another, where all actions proceed from a very personal state of excitement. Where actions have meanings, not just causes. And where a person, to use a trivial word, is happy, and not just nervously tormenting himself.”
—Robert Musil (1880–1942)
“I favor the policy of economy, not because I wish to save money, but because I wish to save people. The men and women of this country who toil are the ones who bear the cost of the Government. Every dollar that we carelessly waste means that their life will be so much the more meager. Every dollar that we prudently save means that their life will be so much the more abundant. Economy is idealism in its most practical terms.”
—Calvin Coolidge (1872–1933)