kato said..Harrow said..
Why does a country *need* 2% growth? What's wrong with maintaining the status quo?
Excellent question with no rational answers.

Well, there is at least one rational answer.
If the population increases by 2% then, if everything else doesn't increase by 2%, you don't maintain the status quo. You upset whatever balance may have existed and you go backwards.
2% more people need 2% more houses to live in.
2% more houses need 2% more builders to build them.
2% more houses being built need 2% more bricks to be made.
2% more bricks being made need 2% more energy to make them.
Unless people in live in houses that are 2% smaller made with bricks that are 2% more efficient. But if a brick maker makes bricks 2% more efficiently then they make 2% more profit and builds themselves a bigger house, so the quo isn't maintained.
They could sell the bricks for 2% less. In which case houses get 2% cheaper to build. If houses get 2% cheaper to build every year then after 30 years they cost about 50% of what they did.
So old houses decline in value. And everyone wants a new house. So now you need more than 2% more bricks and the status quo isn't quo'ed.
Google tells me Australia population growth averages about 1.3% per year. So 1.3% population growth and 0.7% productivity improvement means 2% economy growth is required to maintain the quo.