1 Presentation to David Suzuki Foundation Frank Rotering December 1, 2009

2 Stein Valley Festival, 1989

3 "Economists are stupid - they focus on growth and free trade but completely ignore natural limits."

4 Simon Fraser University Computer class

5 Two main questions: Is the economy at the root of the environmental crisis? Are economists and their discipline "stupid"?

6 Michael Lebowitz - economic history Steven Globerman - microeconomics Nancy Olewiler - environmental economics Terry Heaps - regional economics Zane Spindler - macroeconomics

7 Is the economy at the root of the environmental crisis? Causes excessive production and consumption Generates damaging waste flows Overutilizes natural resources Drives up population level

8 So: YES

9 Are economists and their discipline "stupid"? Ideologically and personally committed to: Continuous economic growth Business and corporations Free trade and globalization... and overwhelmingly ignorant of natural limits.

10 So, in Suzuki's sense: YES

11 Steve Easton - int'l trade "Where's your model?"

12 p 1 D 1 + p 2 D 2 = p 1 x 1 + p 2 x 2 X2X2X2X2 X1X1X1X1

13 My overall conclusions: The economy must be revolutionized Standard thinkers will resist fiercely A progressive economics does not exist Therefore: Develop the missing economic theory Find progressive allies Revolutionize the economy

14 Economy Guiding Framework Transportation Option A Environmentally Sound? End Production Planning Stage Environmentally Sound? Sustainable? End Production Implement Phase 1 Environmentally Sound? End Production Yes NoUnknown Yes No Set Objectives Functional Framework Achieve Objectives

15 What to produce, in what quantities What to produce, in what quantities Rates of resource and waste flows Rates of resource and waste flows Rates of habitat destruction Rates of habitat destruction Population level Population level GOAL: Sustainable well-being OBJECTIVES: Guiding Framework

16 Economic of Needs and Limits (ENL) A guiding framework to help a society set economic objectives intended to achieve sustainable well-being A guiding framework to help a society set economic objectives intended to achieve sustainable well-being Based on the core attributes of humankind and nature Based on the core attributes of humankind and nature

17 ENL's Core Logic HumanLogic (Value, Cost) EnvironmentalLogic (Flows, Thresholds) OptimumQuantities Limits TargetOutputQuantities

18 Positive Value Negative Value ENL Value Objective effects of consumption

19 ENL Cost Labor Cost Natural Cost Objective effects of production

20 Marginal Health Q/t 0 Optimum Output Quantity Value Cost OptimumOptimum

21 EnvironmentalBudgets Absorption Rate No Species Decline Regeneration Rate Renewable Resources: Waste Flows: Habitat Destruction:

22 Marginal Health Q/t 0 Target Output Quantity Value Cost Limit = 10,000 TARGET: Optimum Quantity Ecological Limit

23 Marginal Health Q/t 0 Target Output Quantity Value Cost Limit = 6,000 TARGET: Ecological Limit Optimum Quantity

24 needsandlimits.org

25 EndConstraints Means Current Economic Thought FUNCTIONAL FRAMEWORK GUIDING FRAMEWORK NEW ECONOMIC THEORY ENL

26 YouTube video: "Revolutionizing Economic Thought"

27 Organic Change Economy FUNCTIONAL FRAMEWORK GUIDING FRAMEWORK Specify objectives 1

28 Organic Change Economy FUNCTIONAL FRAMEWORK GUIDING FRAMEWORK Specify objectives 1 Achieve objectives 2

29 Organic Change FUNCTIONAL FRAMEWORK GUIDING FRAMEWORK Specify objectives 1 Achieve objectives 2 Evaluate results 3 Economy

30 Organic Change FUNCTIONAL FRAMEWORK GUIDING FRAMEWORK Specify objectives 1 Achieve objectives 2 Evaluate results 3 Economy

31 Organic Change FUNCTIONAL FRAMEWORK GUIDING FRAMEWORK Specify objectives 1 Economy Achieve objectives 2 Evaluate results 3

32 Organic Change FUNCTIONAL FRAMEWORK GUIDING FRAMEWORK Specify objectives 1 Achieve objectives 2 Evaluate results 3 Economy

33 Organic Change FUNCTIONAL FRAMEWORK GUIDING FRAMEWORK Specify objectives 1 Achieve objectives 2 Evaluate results 3 Economy

34 Organic Change FUNCTIONAL FRAMEWORK GUIDING FRAMEWORK Specify objectives 1 Achieve objectives 2 Evaluate results 3 Economy

35 Results of Organic Change A new economy that achieves sustainable well-being A new economy that achieves sustainable well-being Evolved institutions Evolved institutions An unknown economic structure An unknown economic structure BUT: Capitalism has been historically superseded BUT: Capitalism has been historically superseded

36 Kirkpatrick Sale 1993

37 "... isolated aberrations within a functioning system, correctable by regulation and enforcement, and not as inevitable by- products of an economic system based on the imperative of growth..." (p. 100, underlining added) K. Sale - Shortcomings of Environmentalism Environmental problems seen as:

38 "... the environmental movement can never win, can never be anything but a tolerated gadfly, as long as it functions within capitalist society. It's as simple as that." K. Sale: An Illusion of Progress - June 22, 2003 (underlining added)

39 Jonathan Freedland: "... it is not just excessive consumerism but capitalism's very nature that makes it incompatible with the survival of our planet. For capitalism requires constant economic growth, yet the Earth's resources are finite.” - The Guardian (December 5, 2007)

40 Herman Daly Bill Rees Ecological Economics: DEEP DENIAL

41 YouTube video: "A Critique of Ecological Economics"

42 "We work towards balancing human needs with the Earth’s ability to sustain all life." "Our goal is to find and communicate practical ways to achieve that balance.” (Foundation facts) Website: Can "practical ways" adequately address growth-bound capitalism and reverse overshoot?

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44 Standard Environmentalism

45

46 Standard environmentalism can be effective when the solution to a problem is compatible with capitalist logic and social relations Technical fixes Technical fixes Minor behavioral changes Minor behavioral changes Modest legal or political reforms Modest legal or political reforms Production for modified wants Production for modified wants

47 It cannot be effective when the solution to a problem is incompatible with capitalist logic and social relations Steady-state or contracting economy Steady-state or contracting economy End of capitalist-worker relationship End of capitalist-worker relationship Long-term profit erosion Long-term profit erosion Production for needs or reduced wants Production for needs or reduced wants

48

49

50 Capitalism must grow Growth is unsustainable Capitalism must go