No-growth economy could mean fewer crashes and higher wages, study shows

No-growth economy could mean fewer crashes and higher wages, study shows. An economy based on zero growth could be more stable - experiencing fewer crashes - and bring higher wages, suggests a new University of Sussex study. Running counter to dominant economic thinking, the new research shows that economies can be stable with or without growth and are in fact likely to be less volatile if we stop chasing ever-increasing GDP. The idea of a no-growth economy is not new - British economist John Maynard Keynes in 1936 predicted an end to growth - but it has gained traction in the past few years as people have increasingly come to view infinite growth as environmentally unsustainable. Dr Adam Barrett, a mathematician at the School of Engineering and Informatics at the University of Sussex, says: "Our economic system relies on growth but, because we live on a finite planet, most people agree there is a limit to how long this can continue. "Slowing down economic activity therefore makes a lot of sense in theory but the charge has always been that this leaves you vulnerable to financial crises. "My research suggests that not only is this not necessarily true but that, if anything, zero-growth scenarios are more likely to remain stable.