Epsilon Archive for Student Projects

Abstract

The economic growth we have experienced the last century is based on limited natural resources. Whether these resources will last for a further economic growth is widely debated. Pessimism and optimism have each been influential philosophies in debate whose opinions can be conceded as two opposing opinions. In this paper we have analyze these opinions from an economics perspective. To study this further, the construction and meaning of the pessimistic and optimistic arguments have been applied implicitly on the Leontief production function and the Solow growth model. On the basis of this, we have developed a vision for the future of how economic growth can become more sustainable. Our fundamental conclusion is that the pessimistic and optimistic views need to interact, to achieve sustainable economic growth.