You’ve got it backwards!
If everyone is very efficient, houses are perfectly insulated and everyone replaces SUVs with bicycles, and has huge savings in the bank
GDP of the country actually goes DOWN in that scenario
Anyhow, the main point stands - if Growth is Zero, economy should be stable, not collapsing. The system should not behave like a drug addict
if a community values bikes more than SUVs GDP can still go up.
also it depends on the SUV, are people ditching a 20 year old thing for electric bikes or ...?
hedonistic adjustments are notoriously difficult in these calculations, but also necessary.
You’ve got it backwards!
If everyone is very efficient, houses are perfectly insulated and everyone replaces SUVs with bicycles, and has huge savings in the bank
GDP of the country actually goes DOWN in that scenario
Anyhow, the main point stands - if Growth is Zero, economy should be stable, not collapsing. The system should not behave like a drug addict