Excess Economic Growth
It comes as a shock to some people that the saying "too much of anything is not good" applies to growth. Business cycles are the result of running a debt economy and the more pronounced the peak (boom), the more severe the trough (burst). Growth cannot be allowed to go unchecked for several reasons that will be discussed in detail. While the sort of growth that should be of concern is mostly only possible in developing and emerging markets due to the high growth potential in those countries, the dangers of excess growth is an important subject for all to understand.
Inflation results when there is too much money chasing too few goods. During periods of economic growth, rates are low, borrowing is rampant, investment is booming and businesses are growing. With all of that comes more hiring (less unemployment) and increased wages. Also, during this period banks are excited to lend to private consumers, money is cheap. This results in the saturation of the economy with money and debt. What people don't realize about inflation fuelled by economic growth is that the excess liquidity is largely made up of debt in addition to cash. This is obviously a problem and as soon as some agents recognize the current economic situation, they start selling off assets that they estimate to be overvalued. This realization and correction affects both the securities market and the real asset market and it happens at the peak of growth and precipitates the stage that follows, the burst. There might be no danger of hyperinflation in well managed economies because inflation in this case is as a result of economic growth and not the careless printing of money.
As was alluded to previously, during periods of excess growth, economic agents are highly leveraged. At the realization that assets are overpriced people cannot afford to pay back their loans anymore because the value of the debt is much greater than the actual value of their asset so they would choose to forfeit. This is what leads to the bank failures that occur during contractions. The widespread default that characterizes this stage is also caused by companies laying off workers, cutting pays, and reducing hours as production slows. Just like magic the money that once existed vanishes into thin air.
The difficulty with excess growth is that for the momentum to continue and to keep the economic machine running at its current speed, more and more of private savings will be needed to fund growth. That means that as the boom continues, an increasingly larger portion of income (savings) will be needed to fund growth. At a certain point savings falls short of the level needed to keep growth going and the economy grinds to a halt
Environmental damage is one of the most disturbing results of excess growth. Think of the economy as an industrial machine. Excess growth is analogous to said machine working over time and dispelling more waste as it works over capacity. This could be actual industrial waste or waste from having more vehicles on the roads as more people have access to loans and can afford to acquire them for example. Either way, this will result in more pressure on the environment than carbon pricing and waste control methods will be able to curb.