Growth is sometimes cited as all important, even though it can be misleading. In fact, growth which appears to decline can actually reflect strong, stable performance. Overly focusing on growth as the ultimate goal has its pitfalls. However, insatiable appetite for success can lead to creativity.
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The global economic downturn in 2009 gave rise to plenty of talk about troublesome trends – slowing economies, next-to-zero GDP growth, and companies facing lower profit growth rates.
The questions is, do we need to worry about growth? Is growth real? Can we sustain growth eternally?
Alternatively, we should move on to measuring other trends or indicators of performance.
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Take this example for the number of shoes sold globally 2000-2008. The chart (measuring the growth of shoe sales) appears appalling; after 2003, the growth slows down to almost zero!
However, growth measures the difference between actual values. Decreasing growth signifies a slowdown of the newer value, but NOT a decrease from the previous value. Zero growth only means no change; zero growth stands for status quo.
The second chart shows the real values. After 2005, the shoe sales stabilize. They are still very much higher than in 2002. However, growth is very low. Hardly a doomsday scenario.
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Growth in itself is driven by greed and guilt.
In that sense, the struggle for growth itself is a never-ceasing force to race for market share. When the market is saturated, the usual tactic employed is to create needs which did not exist before – so that money can be made satisfying these needs. It also leads to preplanned obsolescence, and also to an everlasting war over market share.
In conclusion, I am not denying progress.
It is in our nature to strive to continuously improve ourselves, our work and our financial situation. This drive leads to technological inventions and developments in society. Without it, we will become complacent. Our neighbor will then get a better car and our competitor will win another battle in the war for market share.
The important thing is not to hold growth as the ultimate goal. Progress can be measured by stability as well.
Agree? Disagree? Leave a comment to let me know.
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