Is There a Growth Imperative Inherent in Our Financial System?

ABSTRACT In the article “Gesell's Natural Economic Order as a Blueprint for a ‘Fairconomy’ and a Sustainable Future” in this special issue, it was explained why and how our monetary system forces us to constantly increase economic output. However, whether or not there is in fact such a growth imperative inherent in our monetary system is a topic of ongoing debate in ecological economics and bio‐economics, while conventional economic wisdom still outright rejects the concept entirely. This article categorizes into five groups the arguments often offered against the existence of a growth imperative inherent in our monetary system. It then discusses and discards each of the arguments. Using the case of Chile's forests and aquaculture management zones, it will be explained why this growth imperative applies to private and public goods alike. Even though a natural resource may be privately owned, this does not guarantee that the resource will not be overexploited.