103 Debt + Economic Growth

Question 1

What is debt?

Answer 1

Public debt:
how much a government (including central, state, or local levels) in a country owes to outside lenders

Household (or private) debt:
How much does a person or household owe in debt? It is the financial liabilities of households—any money owed.
E.g. mortgage loans, consumer loans (such as credit cards, Afterpay, and student loans)

Question 2

What is ‘affluenza’?

Answer 2

Affluenza: an epidemic of stress, overwork, waste, and indebtedness caused by consumer debt and over-consumption (Hamilton + Dennis, 2005)

A failure to distinguish between what we need and what we want.

Question 3

Explain the relationship between debt and economic growth.

Answer 3

Debt can grow an economy as it enables more spending/investment, however, there are risks associated with this economic growth model.

Question 4

What is ‘discriminate growth’?

Answer 4

Discriminate growth involves weighing up economic growth against environmental costs.

As we get more economic growth, it’s often coming to the deterioration to our planet.

Question 5

Explore environmentalist responses to economic growth & consumption.

Answer 5

Although environmentalists are concerned about NZers who can’t afford to meet their most basic needs, an environmental perspective would argue that a reduction in consumption and household debt is a good thing because it would focus or encourage people to buy only what they need. While they care about people, they’re more concerned about the sustainability + future of our environment.

Question 6

Explore neoliberalism’s response to economic growth & consumption.

Answer 6

Neoliberal policies prioritise, above all else, economic growth = increase in the production of goods and services over a specific period.

Neoliberalists are motivated by economic growth - a market-driven approach that maximises profits, GDP, etc.

Neoliberals argue that individuals demonstrate their freedom and choice through consumption.