Why faith in economic growth make you poorer

While reading book of Thomas Piketty-Capital in the Twenty-First Century, I started to acknowledge new side of previously hidden reality.

Growing economy :)

Lets start with funny thing. Right now in first world countries (USA + EU) there is exist and flourish ideology that economy must grow. Who stated that it must grow we don’t know but as all ideology it is fearless and merciless. So I always smiling when I read some news articles (this one for example) containing statement like this:

An economy is considered to be in recession if it sees two consecutive quarters of NEGATIVE GROWTH.

Or in the same article:

This is the worst ECONOMIC GROWTH in 61 years

“Negative growth” — normal people called it “economic decline”.

Despite the fact that in same article was written phrases as “This is the biggest fall since records began back in 1959” or “(GDP) shrank 7%”. GPD can fall-sure it is, but not the ECONOMY, because it is always growing even when it is in decline :)

Lets return to the book.

I’m really cutting edges here, so please go and read the book.

In second half of 20 century people enjoyed economy growth of 4–5% and return on capital around 2%. The one of the main ideas of the book that in 21 century there are already existed tendency to low annual economy growth (1–1.5%) + increase of return on capital to ~4%. So in the end there are rich people will be richer and poor will be even poorer. So all economic growth will be consumed by rich ones.

So in the end there are rich people will be richer and poor will be even poorer.

(UPD — 9 Oct 2020 recently found this article describing how in time of crisis government help only rich ones, so YES! — rich people will be richer and poor will be even poorer https://medium.com/incerto/corporate-socialism-the-government-is-bailing-out-investors-managers-not-you-3b31a67bff4a).

Get back to current ideology of “economy growth”. It is in most people minds and we always straggle to change our habits and behavior. Now people making short and long term decision based on how they used to, but not how they need to, according to current situation.

Who know where it is leading us, but we are living at the Dawn of New Era.

And the best solution is to take responsibility for yourself.