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:
“With all its solemn imagery, its rocks,
Its woods, and that uncertain heaven, received
Into the bosom of the steady lake.”
—William Wordsworth (1770–1850)
“He was discontented and wasted his life into the bargain; and yet he rated it as a gain in coming to America, that here you could get tea, and coffee, and meat every day. But the only true America is that country where you are at liberty to pursue such a mode of life as may enable you to do without these, and where the state does not endeavor to compel you to sustain slavery and war and other superfluous expenses which directly or indirectly result from the use of such things.”
—Henry David Thoreau (1817–1862)
“Unaware of the absurdity of it, we introduce our own petty household rules into the economy of the universe for which the life of generations, peoples, of entire planets, has no importance in relation to the general development.”
—Alexander Herzen (1812–1870)