Is Economic Growth All We Need?

There is a lot of talk about economic growth today. It has been that way for a long time. But the discussion has intensified after pandemics, military conflicts and tariff wars have affected economic development worldwide.

The topic has also been debated since EU countries have been lagging behind the US in economic growth for a few years. In the last decade, the US has achieved higher productivity growth and higher economic growth than European countries.

The reasons can be discussed.

Experts and politicians from different political camps, not surprisingly, highlight different reasons. However, many right-wing thinkers in Europe believe that regulations of the business sector driven by climate and gender policy considerations are hampering economic development on the old continent. There is also increasing talk of a dysfunctional capital market in Europe and of insufficient investment in research and development.

After China and Russia became part of the international capitalist economy, it has become even clearer that economic muscle is also political and military muscle. It costs to arm, it costs to wage war, and it costs to clash with powerful economic interests.

But. And this is an important “but!”.

The economic arms race that is currently underway and the strains on economic growth that the pandemic and military conflicts have brought about risk blinding us to the downsides of economic growth.

Growth is hardly a problem. Quite the opposite. It bears repeating that economic growth is a prerequisite for a flourishing society. Without growth, there will be no resources to invest in defense, education, healthcare, culture. But still, we must dare to discuss whether economic growth is the only factor that creates a good society.

In certain political circles, economic growth is associated with population growth. And that is certainly justified. If the economy is to grow, a growing population can be one of several engines. And if growth per capita increases despite the total number of people in a certain country increasing, all is well and good.

But perhaps there must be limits to how fast it can go.

Between 2000 and 2025, for example, Sweden’s population increased from just under 8.9 million people to just over 10.6 million. This dramatic increase – mainly through immigration – has been one of several factors that have driven economic growth. People who come to a new country work and contribute, they consume goods and services, they need healthcare and education. New housing needs to be built; infrastructure needs to be developed.

But perhaps Swedish politicians and economists have been too blind to growth. Because now more people are starting to wonder how Sweden can be a country where people not only work but also enjoy themselves. Sweden has a constant housing shortage and the housing that is built is often very expensive. Infrastructure and public transport have been subjected to severe trials and need to be renewed.

And when population growth is suddenly not as intense because Sweden’s new right-wing government has tightened immigration at the same time as fewer children are being born, an imbalance arises in the system because, for example, schools now have to be closed and newly graduated teachers are out of work.

So of course we should have growth. Otherwise, Europe would fall into stagnation and poverty. But sometimes it may have its own value that growth is evenly distributed over time. Especially if it is growth that drives major demographic changes and changes in working life. Society simply must be able to keep up. Growth is important, but from a Western conservative perspective, long-termism, sustainability and predictability are equally important.

Europe is not the USA or China, and perhaps we should not be either. We Europeans have a historical heritage to cherish. We must take care of our cities, our countryside, our infrastructure, our population, our environment and our culture. Our cities should be beautiful and pleasant. The development of our societies should take place in symbiosis with our history and with the cultural and spiritual needs of our populations.

A true and sustainable European conservatism cannot allow economic growth to stand above everything else.