Economic Growth Conditions

Study Notes

Economic growth is a function of increased satisfaction of wants, where higher economic output provides more opportunities to satisfy wants.
Agents exchange goods and services because they prefer the circumstances after exchange, leading to firms seeking to maximize profit and households seeking to maximize wealth.

Free market economy: the market solves most problems, with minimal state intervention.
Planned economy: the state has significant control, making key decisions.

Politics provides a normative framework in case of market failure.
The relationship between politics and economy can be seen as politics being a saviour or a threat.

Aristotle distinguishes between economics and politics: economics concerns household management and satisfying needs, while politics is about the fulfillment of moral life (virtue ethics).

Aristotle believes the 'good life' or eudaimonia (happiness) limits the economy, as economic activities should not become ends in themselves but exist for the pursuit of happiness.

Economic activities should not become ends in themselves but should promote the common good and contribute to the well-being of all citizens.
Economics is an integral part of political life, and economic policies should align with the ethical and political goals of the community.
A virtuous economy balances acquiring enough wealth to meet essential needs with having time for virtuous activities like learning, contemplation, and civic life.
Money is an instrument of exchange, not accumulation.

Chrematistics is the study of wealth, particularly the limitless accumulation of wealth, which Aristotle sees as a degeneration of economics and harmful to society.

Anthropocentrism is the belief that human beings are the central or most important entity on the planet, but this perspective may be insufficient in the face of global warming.