"'Overwhelmingly, growth is seen as the solution to all problems, but growth is failing,' says Herman Daly, a former World Bank economist who is also known as the father of 'ecological economics,' an offshoot of the same field that spawned Adam Smith three centuries ago but challenges many of the assumptions that classical economists hold dear.While the term may seem like an oxymoron to some, ecological economics places the economy inside the larger 'ecosphere' that supports all life on Earth, rather than seeing the economy and job creation in direct opposition to environmental protection. That's an idea that has gained ground in recent years as businesses have become increasingly compromised by water and raw material scarcity, extreme weather, crop failures and other problems linked to global warming and environmental degradation."
It's just common sense that an economy can't grow forever. But people still believe this. That's why people get swept up in housing bubbles, .com bubbles, and all the bubbles that build and pop one after the other.
I personally like the idea of the moral economy, where our success is gauged by how well people are doing, not how much money corporations are making.