The Steady State Path to Real Prosperity A Bigger Economy Doesn’t Mean a Better Economy
by mattyp
by treehouse1977
The Nature of Growth Grow \ ˈ grō\ verb 1.To spring up and develop to maturity 2.To increase in size Desirability of growth depends upon The entity that’s growing: e.g., a human body 2. The context: e.g., stage of life 3. The rate: e.g., slow, normal, fast
Context: Children Rate: Normal Growth is desirable.
Context 1: Child Rate 1: Very fast Context 2: Adult Rate 2: Slow Growth is undesirable.
Growth of Economic Activity For economic growth to occur, what exactly is getting bigger? Production and consumption of goods and services (more stuff and more activity) Gross domestic product (GDP), the final dollar value of goods and services produced Population, consumption per person, or both.
USA – 14,260,000 Japan – 4,924,000 China – 4,402,000 Germany – 3,668,000 France – 2,866,000 UK – 2,674,000 Italy – 2,399,000 Russia – 1,757,000 Spain – 1,683,000 Brazil – 1,665,000 Canada – 1,564,000 India – 1,237,000 Source: CIA Factbook
GDP Growth
Context for GDP Growth
Waste products $ $ Waste products $$$ Resources Waste Resources Waste Context: Thermodynamic Limits to Growth
Time GDP Natural capital allocated to the economy Natural capital allocated to nature K C a r r y i n g C a p a c i t y E c o n o m i c G r o w t h Context: Ecological Limits to Growth
Context: Disappointing Results of Growth Income per person Happiness (index) Source: Inglehart and Klingemann (2000)
Context: Disappointing Results of Growth U.S. Percentage Very Happy Real income per person Percentage very happy Source: Layard (2005)
Context: Disappointing Results of Growth
Rate of Increase World GDP (1990 millions of dollars), source: Angus Maddison
Desirability of Growth
by mattyp
Steady State Economy: Better not Bigger Constant (or mildly fluctuating) population Constant (or mildly fluctuating) per capita consumption Constant (and sustainable) throughput of energy and materials Sustainable scale Fair distribution of wealth Efficient allocation of resources High quality of life
Right-sized Smaller population New measures of success Different labor/capital mix Shorter working hours/more leisure More nature Fewer status goods Healthier food systems Better use of technology More locally supplied goods and services Science-based decision making Less debt Less production, more maintenance What Does a Steady State Economy Look Like?
Less of this......and more of this.
What Does a Steady State Economy Look Like? Less of this......and more of this.
What Does a Steady State Economy Look Like? Less of this......and more of this.
What Does a Steady State Economy Look Like? Less of this......and more of this.
What Does a Steady State Economy Look Like? Less of this......and more of this.
What Does a Steady State Economy Look Like? Less of this......and more of this.
by treehouse1977
1.Start with given conditions. 2.Employ gradualism. 3.Change policies. Exemplary network of conservation lands Cap-auction-trade systems for basic resources Limits on the range of inequality in income distribution Ecological tax reform Move to 100% reserve requirements Elevate the commons sector Reform national accounts 4.But don’t put the cart before the horse. We need widespread public support. We need all those analytical economic minds working on the new paradigm. The Transition from Growth to a Steady State
Policy Change – The Right Goal
Policy Change - Exemplary Conservation "Last year's introduction of Dentyne Ice Cinnamint gum, right on the heels of the extinction of the Carolina tufted hen, put product diversity on top for the first time.” Copyright: The Onion
? Policy Change: Technology
Appropriate Use of Technology
Bob Adelman, Magnum Photos Getting Started
What Can You Do? 1. Publicly voice your opinion. Sign the Position on Economic Growth.
What Can You Do? 2. Get informed.
What Can You Do? 3. Get involved with CASSE. Become a member. Become an outreach volunteer.
What Can You Do? 4. Think and act like a steady stater.
5. Ask a lot of questions. What Can You Do?