Governments love growth because it excuses them from dealing with inequality. As Henry Wallich, a former governor of the United States Federal Reserve, once pointed out in defending the current economic model: “Growth is a substitute for equality of income. So long as there is growth there is hope, and that makes large income differentials tolerable.†Growth is a political sedative, snuffing out protest, permitting governments to avoid confrontation with the rich and preventing the construction of a just and sustainable economy. Growth has permitted the social stratification that even the Daily Mail now laments.
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