Trophic Theory of Money Archives – Center for the Advancement of the Steady State Economy

Dear Ecologist, Don’t Forget About the Economy

August 14, 2025/17 Comments/in Alix Underwood, Economic Growth, Environment, Steady State Economy, Steady State Herald, Trophic Theory of Money /by Alix Underwood

Opinion by Alix Underwood

The Ecological Society of America’s (ESA) Annual Meeting concludes today in Baltimore, Maryland. Of the dizzying multitude of topics on the agenda, the most prevalent were wildlife conservation, forest ecology, and climate change. Meeting sessions focused on niche aspects of these topics: threatened wader species on Sonadia Island, the effects of endemic mistletoes on forest-floor invertebrates, and the impacts of warming on interactions between plants and symbionts,

Inflation through the Lens of the Trophic Theory of Money

November 21, 2024/3 Comments/in Economic Growth, Economic Policy, GDP, Inflation, Monetary Policy, Money and Investments, Steady State Economy, Steady State Herald, Trophic Theory of Money /by Alix Underwood

by Danish Hasan Ansari

In its simplest sense, inflation is an increase in the prices of goods and services. For instance, if the price of a certain good is $10 and in the next month the price increases to $12, the inflation on that item over one month is 20%. Many economists consider low levels of inflation sustained over time to be normal in a functioning economy. However,

A Primer on Economic Growth and Biodiversity for COP16

October 17, 2024/12 Comments/in Biodiversity, Brian Czech, Conservation, Economic Growth, Economic Policy, Governance, Steady State Economy, Steady State Herald, Sustainability, Trophic Theory of Money /by Alix Underwood

by Brian Czech

With the core meetings of the United Nations Biodiversity Conference (COP16) starting next week, it’s time for a primer on the relationship between economic growth and biodiversity conservation. The last thing we want is a COP16 devoid of discussion about the conflict between growing the economy and conserving biodiversity. In fact, the “800-pound gorilla”—GDP growth—ought to be front and center.

Devoted Herald readers may feel a tinge of déjà vu,

San Jose: An Information Economy Giant with Whopping Footprints

September 19, 2024/9 Comments/in Alix Underwood, GDP, Inequality, Limits to Growth, Materials use, Steady State Economy, Steady State Herald, Technology, Trophic Theory of Money, Wealth /by Alix Underwood

by Alix Underwood

What is your reaction when you hear the tagline “city with the highest GDP per capita in the United States”? Perhaps you would like to live in that city. Perhaps you think it sets a positive example for other cities. If so, you are not alone. Corporate and political leaders have been prioritizing economic growth for decades, and this mindset has trickled down until it has saturated the public.

The problem is that there is a fundamental conflict between economic growth and environmental protection.

Service Providers in the Trophic Theory of Money

August 22, 2024/5 Comments/in Biodiversity, Brian Czech, Consumption, Fossil Fuels, Steady State Herald, Trophic Theory of Money /by Alix Underwood

by Brian Czech

Steady State Herald readers are familiar with the theory that money originates from an agricultural surplus that frees hands for the division of labor—and thenceforth the exchanging of money. This trophic theory of money (TTOM) helps us understand not only the historical origins of money, such as in Mesopotamia (the “Cradle of Cash”), but also the annual origins of “warranted money” in the grain belts of the world.

A Trophic Perspective on Fossil Fuels

August 1, 2024/8 Comments/in Alix Underwood, Consumption, Food and Agriculture, Fossil Fuels, Limits to Growth, Pollution, Steady State Economy, Steady State Herald, Sustainability, Trophic Theory of Money /by Alix Underwood

by Alix Underwood

Like the economy of nature, the human economy has a “trophic” structure. In nature, nutrition and energy flow from plants to herbivores to carnivores, with each of these comprising a trophic level of the ecosystem. In the human economy, materials and energy flow from agriculture and other extractive activities to heavy manufacturing to light manufacturing. Both economies include service providers, such as pollinators in nature and the transportation sector in the human economy.

Rooted in the Earth: The Economy Needs Agriculture

July 11, 2024/6 Comments/in Alix Underwood, Economic Growth, Food and Agriculture, Steady State Economy, Steady State Herald, Trophic Theory of Money /by Gary Gardner

by Alix Underwood

Though it’s easy to lose sight of, with our language and culture and smartphones, Homo sapiens is an animal species that exists within natural ecosystems. All our activities, including our economic activities, take place within and depend upon these ecosystems. This is the starting point for the trophic theory of money (TTOM).

“Trophic” refers to the flow of nutrition and energy. In the economy of nature,

Debt, Deficits, and Warranted Money

March 14, 2024/3 Comments/in Brian Czech, Economic Growth, Economic Policy, Food and Agriculture, Inflation, Monetary Policy, Money and Investments, Steady State Economy, Steady State Herald, Trophic Theory of Money /by Gary Gardner

by Brian Czech

If you recognize the damages done by a bloating economy, you’ll be alarmed by the global GDP meter, which hit the existentially menacing threshold of $100 trillion in 2022. If that doesn’t give you a dose of distress, try the global debt clock. Then, for a dizzying dose indeed, check the casino-like combination of debt and GDP maintained by “US Debt Clock.”

Almost all readers,

Lesson from a Failed Bank: Only One Real Start-Up

March 23, 2023/7 Comments/in Banking, Brian Czech, Corporate Reform, Monetary Policy, Money and Investments, Steady State Economy, Steady State Herald, Technology, Trophic Theory of Money /by Gary Gardner

by Brian Czech

Banks are macroeconomic mirrors. They reflect the activity of the real economy. If the economy is growing, so are the banks, starting with the Federal Reserve and its regional banks, all the way out to tiny First Michigan Bank, Oakwood Bank (the smallest bank in bank-laden Texas), and the patriotically named Citizens Bank of Americus (Georgia).

Not only do the banks,

IPCC Report: Happily Ever After or Miserable Ever More?

August 19, 2021/2 Comments/in Climate Change, Economic Growth, Environment, Steady State Herald, Sustainability, Trophic Theory of Money /by Brian Czech

by Brian Snyder

If you’ve been following the news, you’ve heard that the Intergovernmental Panel on Climate Change (IPCC) recently released the first section of its sixth report (hereafter, “the report”). The report focuses on the physical science of climate change, and projects the most likely ecological and economic impacts as well as possible mitigation pathways. If you’ve read it—and it is worth reading—you might find that the IPCC has managed once again to walk the line between terrifying and cautious.