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. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center