Economic Growth Model Reveals How Resource Consumption Impacts Structural Change
The HARMONEY economic growth model shows how economies can grow while using fewer resources over time. This happens because of limits to growth, not just to avoid running out of resources. Changing how prices are set can also make it seem like resource use is decreasing. When wages are high, profits and debt can drop to zero, but changing how wages are set can keep profits up. The structure of the HARMONEY model changes similarly to how the U.S. economy changed after World War II.