Studies of Economic Change

Time Course

The basic decisions or choices of societies or even mankind within their life cycle equals a characteristic trend of their economic development over the time:

No social developments (2):

A social and economic development does not happen if all human beings are saturated and satisfied. The precondition for social and economic changes is that life has to be "uncomfortable, brutal, and short" as a philosopher has been found out. Otherwise the economic level would remain at the level during the stone age.

Start phase (1):

High demands and the increase of the population cause an evolutionary process so that according to the scientific and technological development economic growth is induced.

Growth phase (3):

The accumulation of scientific, technological and economic resources causes in connection with a high demand for goods and services an exponential increasing economic growth rate as the markets are not saturated yet.

Saturation phase (4):

If the additional value (marginal utility) of further growth declines and the demand for goods and services of everyday needs is more and more satisfied a saturation phase with declining economic growth rates comes into effect. At the same time the demands on companies increase due to the international competition.

Regression phase (5):

The decreasing growth rates due to the "law" of diminishing marginal utility and the increasing productivity rates due to the international competition generate an unemployment rate which reduces the employment rate as long as economic regression and individual repression emerges.

Sustainability (6):

The continuation of the life cycle on a high level requires a change of perspective which must lead to a reduction of the unemployment rate and to an increase of the labour force participation by decreasing the hours worked.