Dynamics of Steady State
Revised 24 May 2019
Steady state is not a stagnant or static state. Instead, steady state is a stable dynamic state of equilibrium where, although the size of a combination of capital stocks remains the same, capital stocks undergo continuous change in the same way that cells in our bodies are replaced over time by different cells. Combinations of capital stocks can undergo continuous changes over time under steady state so long as inflows and outflows of energy and mass are equal.
Compared to ecosystems which self-regulate under conditions of climax, our current economic systems do not have automatic feedback systems which promote and regulate the same conditions of climax. In order to achieve steady state, we need to adopt economic systems which regulate inflows and outflows of energy and mass to ensure that inflows do not exceed outflows.