Trussonomics pins everything on Growth

PD
5 Oct 2022

Tory leader's speech labels Lib Dems as 'anti growth'

In her final (and farewell?) speech to the Conservative Party Conference in Birmingham, PM Liz Truss chose to label a large collection of people and organisations as 'anti growth', including Lib Dems (nice to get a mention!).
Setting aside the wisdom of picking a fight with quite so many people (as well as many in the Conservative Party), it is perhaps worth examining some of the issues with the Truss mantra of 'growth, growth, growth'.
At first sight growth in GDP seems like an unambiguously 'good thing'. More money in the economy means more money for individuals and communities and that is bound to improve their quality of life - right?
Well yes and no. More money in the NHS for example, can mean more staff and facilities and better outcomes for patients. However the problem lies in the inextricable link between economic growth and the consumption of finite resources as is explained in this article in Scientific American.
In a finite world with limited resources you cannot have infinite growth. Sustainable growth must see resource use plateauing and pollution declining if we are to continue to live safely on our planet.

4 graphs illustrating grwoth

A useful illustration of this is the use of the element lithium, used to make batteries for EVs as well as most phones, tablets and laptops. It is suggested that the demand for lithium will increase by 10% each year. However because this increase is compounded it means that demand will double in just 7 years. Even if the world were allowed to adopt ecologically catastrophic methods of extraction eg deep sea mining, the supply would be exhausted in 44 years.
Sustainable growth is a worthy aim, unregulated growth of the type that has been suggested by Ms Truss is not.

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