Steady State Economy

AAA

DEFINITION of 'Steady State Economy'

An economy structured to balance growth with environmental integrity. A steady state economy seeks to find an equilibrium between production growth and population growth. The economy aims for the efficient use of natural resources, but also seeks fair distribution of the wealth generated from the development of those resources.

INVESTOPEDIA EXPLAINS 'Steady State Economy'

The possibility of a steady state economy comes down to balance: economies may grow or contract, but ultimately fight back to an equilibrium. Ecological economists - major supporters of the idea of a steady state economy - posit that the environment cannot support an unlimited growth of production and wealth, since a growing population will eventually push down wages and use up an increasingly scarce base of natural resources.




RELATED TERMS
  1. Environmental Economics

    An area of economics that studies the economic impact of environmental ...
  2. Uneconomic Growth

    When economic growth produces negative external consequences ...
  3. Economics

    A social science that studies how individuals, governments, firms ...
  4. Macroeconomics

    The field of economics that studies the behavior of the aggregate ...
  5. Green Economics

    A methodology of economics that supports the harmonious interaction ...
  6. Kyoto Protocol

    An international agreement that aims to reduce carbon dioxide ...
Related Articles
  1. How Influential Economists Changed Our ...
    Fundamental Analysis

    How Influential Economists Changed Our ...

  2. The Green Marketing Machine
    Fundamental Analysis

    The Green Marketing Machine

  3. Adam Smith And
    Entrepreneurship

    Adam Smith And "The Wealth Of Nations" ...

  4. The Uncertainty Of Economics: Exploring ...
    Economics

    The Uncertainty Of Economics: Exploring ...

Hot Definitions
  1. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  2. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  5. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  6. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
Trading Center