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NGOs Challenged to Back Up Their Rhetoric

The following letter was sent to the top ten environmental NGOs today, challenging them to a debate on the topic, “Is there a conflict between economic growth and environmental protection?” Recipients included the National Wildlife Federation, Defenders of Wildlife, World Wildlife Fund, Sierra Club, Friends of the Earth, Environmental Defense Fund, Natural Resources Defense Council, The Nature Conservancy, National Audubon Society and the Izaak Walton League.

No Mere Resolution: The Vermont Legislature and the Steady State Economy

By Brian Czech

Brian CzechHere’s a day to remember: May 6, 2016. That’s the day when, late in the afternoon, the Legislature of the State of Vermont passed H.C.R. 412, “House Concurrent Resolution Honoring the Center for the Advancement of the Steady State Economy for Its Important Work.” In a nation where acts of steady statesmanship – political support for a steady state economy – have only just begun, the Vermont Legislature has offered a perfect and prescient precedent.

Some may scoff at the idea that any resolution could be momentous. It’s true that, typically, a resolution isn’t as distinguished as a statute, an executive order, or a Supreme Court decision. H.C.R. 412 was one of 47 resolutions passed on that adjourning day of the 2015/2016 Vermont Legislature. True, too, that the legislature didn’t resolve to reform any economic policy with H.C.R. 412.

Now that we’ve looked the donut squarely in the hole, let’s consider what the Vermont Legislature did accomplish:

1) The steady state economy – the only sustainable alternative to unsustainable growth or recession – was brought out of its academic niche into mainstream political dialog. We’re not talking about the ramblings of a quirky county commissioner or misfiring mayor. A state legislature represents the second-highest lawmaking level in the land. In Vermont, a famously beautiful and progressive land that has also offered us a viable presidential candidate, there was virtually unanimous support in the legislature for recognizing limits to economic growth, the problems caused by growth, and the solutions inherent to a steady state economy.

2) Vermonters have proven the phrase “steady state economy” is not the bogeyman it was thought to be by the architects and activists of the “new economy” movement. If a state legislature can stomach, reprint, and even honor the phrase, it’s time to stop the hand-wringing in futile attempts to come up with a warmer and fuzzier phrase that would connote an economy of stabilized size. “Steady state economy” is perfectly clear with no connotations necessary. Let’s just tell it like it is, and thank you Vermont.

3) H.C.R. 412 is loaded with implications for future adjustments to tax codes, budgets, program goals and incentives of all kinds. Meanwhile, it provides leadership that is immediately relevant to consumers. Consumers are citizens who constitute the demand side of the economy. Any citizen mulling the construction of a new home, the purchase of a new vehicle, or the development of a new wardrobe has a decision to make. To illustrate by extreme: Hummer or hybrid? Conscientious, widespread tempering of demand toward sustainable levels starts with leadership, such as provided in H.C.R. 412.

Suddenly, doesn’t the donut look bigger than the hole?

H.C.R. 412 was introduced by Representative Curt McCormack of Burlington. The Burlington connection makes a lot of sense, given the long-running leadership in steady state economics coming out of the University of Vermont and its Gund Institute for Ecological Economics. In fact, McCormack is on the UVM Board of Trustees.

It’s refreshing that, in the political days of short-term memory and “small hands” rhetoric, some politicians are doing their homework on the big picture and the long term. The perpetual push for increasing GDP is a growing threat to the environment, the economy, national security, and international stability, but the threat is clear only for those who stop to think about it. Led by McCormack, May 6 was the day a state legislature stopped to think about it. It’s a day worth remembering.

Guess What Trudeau Said About Growth?

By James Magnus-Johnston

James Magnus-JohnstonIn an appeal to Mr. Trudeau’s philosophical musings, I’ve written a letter to him listing five ways Canada can foster a better, more sustainable economy.

 

 

“There are a lot of people out there, environmental thinkers like Herman Daly and others, who talk about the fact that maybe endless growth within a finite system is not either possible or even desirable. Maybe we have to talk about shifting our focus so that instead of just growing, we’re actually developing and improving.” Maclean’s, “In conversation: Justin Trudeau” 2012

Justin Trudeau.Canadian Pacific

Canadian Prime Minister, Justin Trudeau. Photo Credit: Canadian Pacific.

Dear Prime Minister Trudeau,

Congratulations on winning a majority government. While most of the world appears to be fixated on your admirable hair and bone structure, I’m caught reflecting on these words you uttered a few years ago. I’m not surprised that I haven’t heard you repeat them recently, since very few world leaders adopt the rhetoric of the post-growth paradigm. But it’s clear that you have some fundamental knowledge of alternatives to growth.

If your handlers wouldn’t dare let you say such things on the campaign trail, it’s perhaps unlikely to think that you’ll adopt a steady state agenda during your term in office. On the other hand, what you said wasn’t printed in some obscure blog, taken out of context, or overheard in conversation. It was in a national platform, Maclean’s magazine, one of Canada’s largest newsmagazines. Your remarks appear to reveal some sincerity about your view of the world we’re currently inhabiting—a world with definable environmental limits to growth, like climate change.

Of course, the norms of the majority and rhetoric of the status quo can overwhelm the greatest idealists, especially in a centrist big-tent party like Canada’s liberal party. So I’m going to appeal to your not-so-long-lost philosophy by reminding you that many young folks are facing a bleak future. And I don’t just mean low-wage jobs. I mean a fear of catastrophic environmental breakdown, as evidenced by rapid methane releases in the Arctic and ocean acidification—both characteristics of climate change—as well as mass extinction. These are real, tangible manifestations of the limits to growth.

It’s going to be very hard to turn our atmosphere around, but we could adopt policies immediately to shift our focus “so that instead of just growing, we’re actually developing and improving.” Here are five practical ways to move us towards a better, more sustainable economy. After all, you’re the one that keeps reminding us that “in Canada, better is always possible.”

  1. Start counting some of the costs associated with GDP growth (formally or informally). Tar sands growth, for instance, has myriad costs associated with its expansion, including insured losses due to extreme weather, droughts, and floods, among other things. At the community level, some indigenous communities have no trouble getting funding for incarceration and diabetes treatments but can’t get funding for healthy food and community development. You could help turn this around.
  2. Finish what your father started experimenting with in Dauphin in 1978 and implement a basic income for all Canadians. Senator Hugh Segal has made a great case for why this is a practical idea.
  3. Consider a formal, nationwide price on carbon. You mentioned that you’d leave it to the provinces, but the only reason different provinces have different carbon pricing systems is because it’s taken so long for the federal government to get started on this in the first place. Much like the emergence of a national healthcare system, you could learn from the provincial early adopters and go nationwide.
  4. We have a central bank. Let’s start using it again for low-cost or even no-interest borrowing. If you have an ambitious infrastructure agenda, and want to do it without creating long-term debt, borrow from your own bank rather than the private banks. The debt-based private banking system has rather stupidly inflated the prices of commodities and housing for folks under the age of 40. That’s called “uneconomic growth,” and it’s fostering a generation of exploited Canadians.
  5. Help free up the working day, week, and year by encouraging greater work flexibility, like some European models. Full time employment for everyone is impossible to provide with low growth rates (like the present). Young people are the ones getting the shaft, and we’re well beyond the need for everyone to spend their lives toiling in low-wage jobs.

So, Mr. Trudeau, if you truly believe (as you said) that “maybe we have to talk about shifting our focus so that instead of just growing, we’re actually developing and improving,” I’ve just provided five examples of how your government can start doing that right away.

We recognize that the devil is in the details, and we’re here to help sort through them with you.

For a thriving, sustainable future,

James Magnus-Johnston

Canadian Director, Center for the Advancement of the Steady State Economy (CASSE)

 

Time to Stop Worshipping Economic Growth

By Brent Blackwelder

Brent Blackwelder

There are physical limits to growth on a finite planet. In 1972, the Club of Rome issued their groundbreaking report—Limits to Growth (twelve million copies in thirty-seven languages). The authors predicted that by about 2030, our planet would feel a serious squeeze on natural resources, and they were right on target.

In 2009, the Stockholm Resilience Center introduced the concept of planetary boundaries to help the public envision the nature of the challenges posed by limits to growth and physical/biological boundaries. They defined nine boundaries critical to human existence that, if crossed, could generate abrupt or irreversible environmental changes.

The global economy must be viewed from a macro-perspective to realize that infringement of the planetary boundaries puts many life support ecosystems in jeopardy. Without functional ecosystems, the very survival of life forms, as well as human institutions, is put in doubt, including any economy. There is no economy on a dead planet!

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Scientists are concerned that we have already overstepped the boundaries on biogeochemical flows (nitrogen) and biosphere integrity (genetic biodiversity). [click image for larger view] Image Credit: F. Pharand-Deschênes /Globaïa. 

These boundaries apply to the economy because the economy is a wholly-owned subsidiary of the ecosystems that make life on earth possible. (Some understanding of ecology should be a prerequisite for an advanced degree in economics!) Scientists are concerned that we have already overstepped the boundaries on biogeochemical flows (nitrogen) and biosphere integrity (genetic biodiversity).

Today’s global economy and the various regional and national economies regularly neglect planetary boundaries. Crossing a boundary is tantamount to crashing through a guardrail and plunging over a cliff. The blind encouragement of economic growth that does not respect these boundaries is setting up human civilizations for collapse. Two of the most harmful types of growth are ruthless and futureless.

Ruthless growth benefits a few at the top but does nothing for the middle class. One of the reasons that Bernie Sanders’ presidential campaign has attracted larger and larger audiences is that he says the most crucial issue facing the United States is the gross discrepancy between the middle class and the billionaire class.

Futureless growth destroys resources, such as water, forests, fisheries, and farmland that will be needed by our children and grandchildren, and by wildlife. Futureless growth directly conflicts with common family values. We tell our children to save for the future rather than squander their money. We don’t tell them to outspend their peers. We don’t tell them to judge the quality of their lives based on material possessions and quarterly financial reports.

To remain within the nine planetary boundaries, nations must shed the fetish of economic growth and transition to a true-cost, steady state economy. Some of the critical transition steps include:

  1. Replacing the GDP as a measure of well-being (lots of work has been done on coming up with an index of sustainable productivity).
  2. Getting the Securities and Exchange Commission (SEC) to require corporations to disclose their pollution externalities (the SEC is not hopeless, as can be seen by its recent decision to require CEOs to publish their salaries along with those of the average workers at their companies).
  3. Going to a four-day work week to secure fuller employment (this has happened in some European countries; Canadian economist Peter Victor has papers on why this is a crucial transition step).
  4. Dematerializing the economy (i.e., so that it’s cheaper to repair an appliance than it is to buy a new one).
  5. Identifying the areas in which the economy should grow—and those where it should shrink or degrow (i.e., the usage of fossil fuels must shrink sharply, and in so doing, roof-top solar will grow to become a much larger part of the global economy).
  6. Identifying the most heinous types of economic growth (ruthless and futureless) and showing how their costs exceed their benefits.
  7. Stabilizing population to keep humanity from further transgression of the nine boundaries.

There are about seven billion people on earth today, and forecasts indicate there will be nine billion by 2050. Already, almost one billion malnourished people are feeling the squeeze, as they painfully bear testimony to the truth of what Malthus predicted two centuries ago. Key first steps to stabilizing population in a progressive way are:

  1. Empowerment of women.
  2. Requiring all foreign assistance to be designed so that women will be better off as a result.
  3. Making contraceptives widely available.

Our global economy is treating the planet as if it were a business in a liquidation sale. Even environmental organizations—devoted to environmental protection— have been slow to acknowledge the major causes of environmental degradation, such as perverse economic incentives encouraging raw resource extraction and non-renewable energy use. We need environmental leaders to speak out for a new, just, and true-cost economy; and to challenge the mindless embracing of economic growth—even ruthless and futureless growth. Environmental leaders should be driving the push toward refocusing economic thinking on the changes that we will have to make if we are going to move to a healthier economy that exists within the nine planetary boundaries. Only if humanity stays within these nine boundaries can it continue to develop and thrive for generations to come.

 

 

Appropriate Scarcity

By Robert A. Herendeen

  … appealing to people to restrain themselves [by] self-enforced abstinence alone is a waste of time. By and large, we consume as much as our incomes allow…. changes… cannot take place without constraints that apply to everyone rather than everyone else. Manmade global warming cannot be restrained unless we persuade the government to force us to change the way we live.

—George Monbiot, Heat (2006/2009)

The results indicate that the likelihood of paying a positive amount for supporting renewable energy is higher under a mandatory scheme compared to a voluntary payment option in the UK.

—Elcin Akcura, “Mandatory vs. voluntary payment for green electricity,” Ecological Economics (2015)

 

herendeen.3I believe Monbiot says it true. And Akcura (who knew?) provides research-based confirmation.

I envision fulfilling, challenging, joyful lives within environmental constraints, but I can’t imagine that happening without societal signals to reinforce consistent behavior. If level of consumption is a problem, then scarcity is a necessary part of the solution. In the least disruptive and potentially fairest sense, this means using prices to determine demand. To cut to the conclusion: my favorite example is a carbon tax.

Monbiot’s statement is frightening, Draconian, and an apparent non-starter politically… almost. But the consequence of denying it leads to several futile proposals and viewpoints which permeate the literature, both scholarly and public. They are futile because they do not produce results that are big enough and fast enough to beat back anthropogenic climate change. Hearing them repeatedly frustrates me. These are:

1. We citizens are being sold the idea that economic growth (especially GDP) is good by government bureaucracies that need it to stay alive, and by corporations that want it because they are greedy (e.g., “the 1%”).

2. We are personally acquisitive because of intensive advertising. Otherwise, we would readily embrace “enough is plenty.”

3. A steady state economy will only be achieved when a new human consciousness emerges. That is not exactly imminent, but it’s in sight.

4. Peer pressure will solve the classic (game theoretic?) problems of free riders, defection, and over-riding competitive ambition in general.

The Temple to Ramesses II at Abu Simbel (II)

The Temple to Ramesses II at Abu Simbel (II). Photo Credit: Institute for the Study of the Ancient World.

The human beings that I observe, work and live with, and love, largely don’t fit these principles. This includes me. We need help. So, about these points:

1. Most of us don’t know or care what GDP is. However, we do have explicit or implicit desires for material/experiential growth at the personal or familial level. Such as: a larger house, a vacation cottage, a new car, a foreign eco-tour, increased travel to visit the grandkids, a secure college fund or retirement package, some new clothes—probably before the old ones wear out. Sum these aspirations over the population and you have pressure for overall growth.

Recently I asked who in my circle at the edge of academia in a progressive college town wants zero personal or professional economic growth. Not soon-to-graduate students looking for the first job. Not immigrants who arrive with almost nothing. Not newlyweds considering starting a family. Not academics building research programs or pursuing tenure. Not college presidents. Not development officers of green non-profit organizations. Not the mayor or city council. And of course not the usual suspects in the business community. I finally concluded that some well-off retirees seem to want zero growth….that’s about it.

2. Watch a TV auto ad and it’s difficult not to suspect—and resent—advertising’s role in fanning the flames of demand. (Mmmmm, a lone car on an otherwise unoccupied road accelerating against the shriek of the engine and the announcer’s deep n’ throaty voice…). But what advertising seduced Pharaoh Ramesses II into carving four 65-foot-tall likenesses of himself from native rock at Abu Simbel ca. 1250 BC? Or the government of Dubai into erecting the 2,722 foot (i.e, 0.52 mile) Burj Khalifa Tower in 2009 AD? I believe essentially all of us are hard-wired to want more of something for some reason. If there is good evidence that advertising is the culprit in overall consumption growth and not just in choosing between spending options, let’s see it.

3. Given the three-millennia separation of the two above construction projects, I think it is wishful thinking to expect Homo sapiens to spontaneously embrace zero growth collectively any time soon.

4. But even if 99+% of us do that, what about the non-cooperators? To the extent that the world is zero-sum (a politically incorrect but applicable description if there really are limits), it takes only a few competitively acquisitive individuals to produce a mess. If the few want more, sooner or later they will destabilize a group of otherwise modest, cooperative individuals. Envy kicks in, or defensive measures to avoid losing. An example of the latter: What to do when the tax bill on your modest abode skyrockets when Ringo Starr and Mick Jagger move in next door (aka the “Aspen effect”)? Try to maintain your modest lifestyle and move 40 miles downriver, or do what it takes to get into the high production/consumption game yourself?

All this brings me back to Monbiot’s bald and bold statement: there is negligible action without effective, broadly felt, implementable…scarcity. In other words, “appropriate scarcity” is not optional; it is necessary. Yes, increasing the price of “bads” is a frequent theme on these pages, but often only as one item in a longish list of principles based on Herman Daly’s powerful writings. Rather, it should be at the top of the list.

There is no question that accomplishing scarcity (for fossil energy, say) by caps and/or taxes is politically, socially, economically, and humanly difficult—a global top-ten red flag. I believe that at the U. S. national level at least, it is feasible. Equity impacts can be minimized by income tax rebates to lower-income households. Other impacts, especially regional, are tougher. In general, moving slowly reduces disruption, but we have scant time. What I hope for is national-level appropriate scarcity of fossil fuels. Done right (a daunting task, to be sure), we can reinforce our own behavior in doing what we (say we) must do to restrain global warming, and have good lives doing it.

 

Dr. Robert Herendeen is a fellow at the Gund Institute for Ecological Economics at the University of Vermont. His research interests include energy consumption, quantitative analysis of environmental issues, and environmental bookkeeping. He is a physicist who conducts economic input-output analyses to determine resource requirements and other impacts of consumption, following the parallels between economic and ecological systems and analysis of perturbed ecosystems. His most recent work covers the connection between net energy and the price of all consumer products.

rherende@uvm.edu

 

Setting Things Straight for the Steady State

By Brian Czech

Editor’s Note: The forthcoming A Future Beyond Growth (Routledge, 2016), edited by Haydn Washington and Paul Twomey, explores the vision and process for moving toward a steady state economy. This edited volume stemmed from the Australian Academy of Science’s 2014 Fenner Conference on the Environment. Haydn is the co-director of the New South Wales chapter of CASSE. The following is Brian Czech’s foreword to “A Future Beyond Growth.”

Brian CzechExtremely dangerous political rhetoric has proliferated over the past several decades, seducing the masses onto a path that leads to the destruction of nature and civilization. This rhetoric is centered on the claim that “there is no conflict between growing the economy and protecting the environment!” Politicians are all about economic growth but, at the same time, none of them want to be seen as willful destroyers of the environment. Therefore they stretch, warp, and corrupt the truth with the win-win rhetoric that we can have our cake and eat it too.

Such is the world that CASSE—the Center for the Advancement of the Steady State Economy—was born into on May 1, 2004. In fact, the win-win rhetoric about growing the economy while protecting the environment was the primary impetus for establishing CASSE. The CASSE position on economic growth sets the record straight that “there is a fundamental conflict between economic growth and environmental protection,” leading up to this fact with seven “whereas” clauses and following it with eight other “therefore” findings.

Those having a counter-reaction that “there doesn’t have to be a conflict; it’s not a fundamental conflict” should read the full CASSE position. The fundamentality of the conflict between economic growth and environmental protection stems from the first two laws of thermodynamics. “Laws of thermodynamics” might sound intimidating to the uninitiated, yet the first two laws can be summarized in such common-sensical terms as: Law 1) You can’t get something from nothing; Law 2) You can’t be 100% efficient in the production process. These laws set up a limit to economic growth, as well as the fundamental conflict between economic growth and environmental protection, as evidenced most clearly by the erosion of biodiversity in lockstep with economic growth.

Haydn1

Haydn Washington, co-editor of A Future Beyond Growth and co-director of the NSW chapter of CASSE, speaking at the Australian Academy of Science’s 2014 Fenner Conference on the Environment. Photo Credit: Anna Schlunke.

So read the CASSE position, and read this book. While the relationship between economic growth and environmental protection is not an overly simple matter, the key points are readily grasped by sober readers, with the benefit of a clearly written book such as A Future Beyond Growth.

Among the 13,000 signatories of the CASSE position are some of the world’s leading sustainability thinkers, including authors of A Future Beyond Growth. Over 200 organizations have endorsed the position. Despite growing support for its central position, CASSE has been David to the Goliaths of Wall Street, neoclassical economics, and mainstream politics worldwide. Economic growth remains the top domestic policy goal among nations and lesser states as well, even as it causes more problems than it solves in the 21st century.

Of course if you’re going to be a responsible critic of economic growth, much less a long-lasting one, you better have an alternative to offer. Fortunately it is easy to identify the basic alternatives to growth. There are but two: economic degrowth and the steady state economy. The best way to summarize the alternatives is with a reminder of what, precisely, is meant by “economic growth.”

Economic growth is simply increasing production and consumption of goods and services in the aggregate. It entails increasing population and/or per capita consumption. Economic growth is indicated by increasing gross domestic product, or GDP. It entails higher demand for materials and energy, because “you can’t get something from nothing.”

Economic growth should be distinguished from “economic development,” which refers to qualitative change regardless of quantitative growth. For example, economic development may refer to the attainment of a fairer distribution of wealth, or a different allocation of resources reflecting the evolution of consumer ethics.

Degrowth, then, is simply defined as decreasing production and consumption in the aggregate, as indicated by decreasing GDP. Decreasing population and/or per capita consumption is required. The word “degrowth” tends to have political connotations in addition to meaning a smaller economy, especially in Western Europe where the degrowth movement originated as “La Décroissance.” (Frankly, “economic growth” also has marked political connotations, but society has gotten numb to them.) As with economic growth, degrowth in the sense of a shrinking economy is ultimately unsustainable.

The sustainable alternative to unsustainable growth and degrowth is the steady state economy, which has stabilized production and consumption of goods and services in the aggregate. “Stabilized” in this context means mildly fluctuating. A steady state economy has stabilized population and per capita consumption. Energy and material demands are gradually stabilized—in the aggregate and per capita—as the limits to productive efficiency are reached. All else equal, a steady state economy is indicated by stabilized GDP. The “all else equal” (as I described in Supply Shock: Economic Growth at the Crossroads and the Steady State Solution) includes level of technology, inflation, the propensity to use money relative to other means of exchange, and environmental conditions. But the bottom line, so to speak, is that GDP is a fine indicator of one thing: the pure size of the economy. Which makes it a good indicator of one other thing: environmental impact.

Obviously the pursuit of a steady state economy invokes a thousand devils in the details of political and cultural reforms. Macroeconomic goals, tax codes, budgets, interest rates, terms of trade: these are some of the aspects of statecraft to be dramatically overhauled with steady statesmanship. In the private sector, what about the sociology of consumption? Imagine the attitudes toward conspicuous consumption in a world that finally gets it about limits to growth.

A basic measure of justice, with an equally basic measure of logic, suggests that the place to start in moving toward a steady state economy on Earth is with the wealthiest nations. Impoverished nations need economic growth, almost by definition. We all know who the wealthiest nations are—look for example at nighttime lighting imagery—and concerned citizens from these countries have helped raise awareness of the perils of pursuing perpetual growth.

Which brings us back to CASSE, the uphill-fighting, philanthropically disadvantaged, non-governmental organization with the mission of advancing the steady state economy, with stabilized population and consumption, as a policy goal with widespread public support. CASSE is almost entirely a volunteer organization. Its “business model” should be referenced in quotes, as “business” tends to connote things like money, salaries, contracts, and related financial features that are rare in the context of CASSE. But CASSE has a volunteer model that includes international chapters unified by the CASSE position on economic growth.

CASSE’s New South Wales Chapter, led by Haydn Washington and Anna Schlunke, has demonstrated the potential of this volunteer model. When they invited me to give the keynote address at the Australian Academy of Science’s 2014 Fenner Conference (the AAS’s annual environmental conference), with the conference’s theme being the steady state economy, I had to check if it was April Fool’s Day. To convene a major academy on the steady state economy in the United States, where Big Money calls the shots even in “academic” affairs, would have been inconceivable. The fact that the CASSE New South Wales Chapter (and its partners) managed to deliver the goods on a national academy conference for the steady state economy says a lot about the New South Wales CASSE chapter, the Australian Academy of Science, and even Australia itself.

What exactly does it say? For starters, it says Haydn Washington and Anna Schlunke are diligent scholars, determined organizers, and capable communicators. It says that the Australian Academy of Science is a faithful champion of its scientific communities. It suggests, too, that an inquisitive, open-minded spirit prevails at least in Australia, which offers hope to the international community. Open minds in Australia have gleaned crucial insights from CASSE’s tireless Australian National Director, Geoff Mosley (Melbourne), and from one of the world’s leading steady state economists, Philip Lawn (Adelaide), and other Australians who presented at the 2014 Fenner Conference.

A Future Beyond Growth grew out of the proceedings of the 2014 Fenner Conference on the Environment. Not everything from the conference made it to print. My own talk, for example, stays mostly in the pages of Supply Shock, plus the current prefatory remarks. But much of the highly memorable Fenner Conference is presented herein, and I feel delighted to preface the chapters with one more thing:

The next time you hear the win-win spin that “there is no conflict between growing the economy and protecting the environment” or the equivalent in your regional culture, don’t just throw up your hands in resignation to the rhetoric. Think instead about a future beyond growth. That’s where there’s no conflict with protecting the environment, national security, and international stability.

 

What Kind of Future Does Your Degree Prepare You For?

by James Magnus-Johnston

James Magnus-JohnstonAs the fall chill sets into the air and farmers begin to harvest, universities invite another wave of impressionable young minds to think about the future—of society, and of their place in it. But preparation for the future requires us to consider exactly what kind of future we think we’re in for, and far too many schools are preparing students for a fictional business-as-usual future.

Do your universities and instructors acknowledge that the global temperature will likely rise by at least two degrees this century? Do they invite you to reflect on the kind of droughts that some argue have hastened Syria’s civil war and caused mass migration? Are you asked to draw connections and present solutions to these challenges, or are you instead invited to rehearse standard narratives and become job-bearing cogs in the growth economy?

Steady state economics acknowledges some unsettling facts, but very few undergraduates will be exposed to anything resembling steady state economics. They’ll be lucky if the name Herman Daly graces the syllabus of their economics class. The lack of interest in post-growth thought more generally signals a curious rot in the academy away from creativity and the synthesis of new ideas, in favour of what’s couched as “critical thinking” within conventional, rigidly defined, and well-rehearsed disciplinary frameworks.

Patrick Finn, author of Critical Condition: Replacing Critical Thinking with Creativity, argues that the contemporary academy provides us with “advanced mental tactics that can be taught for a price,” when we should rather be provided with opportunities to foster creativity through a kind of “loving thinking.” By “loving thinking,” Finn means that we should connect dots from a position of hope and realism rather than merely rehearse advanced mental tactics. Karim Lakhani, a thinker with the Harvard Business School, cautions, however, that new paradigms and ideas that synthesize strands of research from different disciplines face an uphill battle.

VA Tech campus.VA Tech

Virginia Tech campus, Blacksburg, VA. Photo Credit: Virginia Polytechnic Institute and State University

Ecological economics—the branch of thinking that includes steady state economics—is one such discipline. Some have labelled it a transdisciplinary field of research (Norgaard, 1989; Costanza et al., 1997; Costanza and King, 1999), which applies a wide array of techniques to analyse relevant issues from different disciplines. While we may face an uphill battle, I believe that steady state economics invites students to start working from a position of hope precisely because it invites cross-disciplinary thinking. There may not be a perfect consensus surrounding some steady state economic concepts, but the transdisciplinary framework is sufficiently open to foster adaptive, synthetic thinking without losing sight of important questions.

The charge that creative thinking is too general or “unproven” is not historically uncommon. For instance, in a review of Kenneth Boulding’s 1950 work A Reconstruction of Economics, reviewer Ralph Turvey charges that “the problem is that Professor Boulding touches on so many matters and makes so many stimulating or provocative remarks that another book would be required for an adequate discussion” (Turvey, 1951, p. 205). The same charge might be levelled against this author, or any other theorist concerned with the application of theory across and through disciplinary lines.

It is clear that what is acceptable to one discipline (such as environmental science) may be unacceptable to another (such as economics). Yet by understanding what sort of future we’re in for, and by knowing the stakes of the present moment, we cannot claim neutrality or indifference to the consequences of our arguments. Rather, we should work harder to understand the big picture economy-environment dynamics, and overcome inherent disciplinary biases.

Given the biosphere’s depleted regenerative capacity, Daly suggests that it’s too risky to simply research and develop further warrants for steady state economic reform before encouraging a transition. He explains:

As important as empirical measurement is, it is worth remembering that when one jumps out of an airplane, a parachute is more beneficial than an altimeter. First principles make it abundantly clear that we need an economic parachute. Casual empiricism makes it clear that we need it sooner rather than later. More precise information, though not to be disdained, is not necessary, and waiting for it may prove very costly (Daly, 2007, p.22).

Every discipline, and every student, should be (re)considering what kind of future they think they’re preparing for. A creative, unconventional framework is exactly what we need.

Where is Pope Francis on Economic Growth?

by David Kane

Maryknoll Center for Global Concerns, Washington DC Oct. 27, 2008 © Rick Reinhard 2008

Those who believe that there is a fundamental conflict between economic growth and environmental protection will find Pope Francis’ recent encyclical, Laudato Si (Praised Be), a welcome addition to the literature; as well as an important tool in helping others, especially Catholics, to understand and accept the limitations of economic growth. Pope Francis explains how the environmental and social crises we are experiencing will require “profound changes in lifestyles, models of production and consumption, and the established structures of power which today govern societies.” Few in the world have as large a reach as the pope, so it is encouraging to hear him speaking so clearly on these crucial issues.

Environmental and Social Crises

Pope Francis begins by describing the many ecological crises ravaging the planet today. While the media have focused almost exclusively on his inclusion of climate change, referring to it as the climate encyclical,” he actually discusses a host of other ecological crises as well, from the loss of biodiversity and forests, to water and air pollution.

The earth, our home is beginning to look more and more like an immense pile of filth.

He then delves into a number of social crises, including inequality, societal breakdown, and declining quality of life, directly relating them to the ecological crises.

Human beings too are creatures of this world, enjoying a right to life and happiness, and endowed with unique dignity. So we cannot fail to consider the effects on people’s lives of environmental deterioration, current models of development and the throwaway culture.

The human environment and the natural environment deteriorate together; we cannot adequately combat environmental degradation unless we attend to causes related to human and social degradation. In fact, the deterioration of the environment and of society affects the most vulnerable people on the planet.

Causes

Technocratic paradigm

Francis.presidencia.gov.ar

Photo Credit: presidencia.gov.ar

The pope suggests some fundamental causes of these crises including a very interesting discussion around technology. While some have accused Pope Francis of being against, or at least afraid of, technology, that is far from the truth.

Technology has remedied countless evils which used to harm and limit human beings. How can we not feel gratitude and appreciation for this progress, especially in the fields of medicine, engineering and communications?

The problem for Pope Francis is not technology per se, but “the way that humanity has taken up technology and its development according to an undifferentiated and one-dimensional paradigm.”

Men and women have constantly intervened in nature, but for a long time this meant being in tune with and respecting the possibilities offered by the things themselves. It was a matter of receiving what nature itself allowed, as if from its own hand. Now, by contrast, we are the ones to lay our hands on things, attempting to extract everything possible from them… [h]uman beings and material objects no longer extend a friendly hand to one another; the relationship has become confrontational. This has made it easy to accept the idea of infinite or unlimited growth, which proves so attractive to economists, financiers and experts in technology. It is based on the lie that there is an infinite supply of the earth’s goods, and this leads to the planet having every last drop and more squeezed out of it.

In a thoughtful conversation around this technocratic paradigm and its effects, Pope Francis laments how this paradigm tends to dominate economics and political life, degrade the environment, benefit small sectors of society, magnify humanity’s effects on Earth, and create overspecialization, obfuscating the bigger picture.

Culture of relativism

A culture of relativism in which “human beings set themselves at the centre [and] give absolute priority to immediate convenience and all else becomes relative” is another root cause of our crises, according to Pope Francis.

 [The culture of relativism] is also the mindset of those who say: Let us allow the invisible forces of the market to regulate the economy, and consider their impact on society and nature as collateral damage.

This same ‘use and throw away’ logic generates so much waste, because of the disordered desire to consume more than what is really necessary.

Growth and consumption

Another fundamental cause of today’s crises proffered by Pope Francis is the almost exclusive focus on economic growth and ever-increasing consumption as solutions to social problems.

Social exclusion, an inequitable distribution and consumption of energy and other services, social breakdown, increased violence and a rise in new forms of social aggression, drug trafficking, growing drug use by young people, and the loss of identity. These are signs that the growth of the past two centuries has not always led to an integral development and an improvement in the quality of life. Some of these signs are also symptomatic of real social decline, the silent rupture of the bonds of integration and social cohesion.

Since the market tends to promote extreme consumerism in an effort to sell its products, people can easily get caught up in a whirlwind of needless buying and spending. Compulsive consumerism is one example of how the techno-economic paradigm affects individuals…That paradigm leads people to believe that they are free as long as they have the supposed freedom to consume. But those really free are the minority who wield economic and financial power.

Solutions

If we acknowledge the value and the fragility of nature and, at the same time, our God-given abilities, we can finally leave behind the modern myth of unlimited material progress. A fragile world, entrusted by God to human care, challenges us to devise intelligent ways of directing, developing and limiting our power.

On an individual level, Pope Francis speaks of the importance of people experiencing an “ecological conversion” in which they develop a deepened appreciation and love for life in all its forms: “a loving awareness that we are not disconnected from the rest of creatures, but joined in a splendid universal communion.” It becomes clear to them that “nature cannot be regarded as something separate from ourselves or as a mere setting in which we live. We are part of nature, included in it and thus in constant interaction with it.”

Fortified by this conversion, people become more active in their communities usually through one of the “countless array of organizations which work to promote the common good and to defend the environment, whether natural or urban.” Actively engaged citizens are more likely to become environmental educators at their school, in their family, at church, and elsewhere. This education includes “a critique of the ‘myths’ of a modernity grounded in a utilitarian mindset (individualism, unlimited progress, competition, consumerism, the market without rules)…and helping people, through effective pedagogy, to grow in solidarity, responsibility and compassionate care.”

On a societal level, Pope Francis lays out some principles to guide our actions into the future. He says that for too long, political decisions have been made based on outdated economic ideologies and by specialized technicians seemingly incapable of seeing the bigger picture.

Politics must not be subject to the economy, nor should the economy be subject to the dictates of an efficiency-driven paradigm of technocracy.

Today, in view of the common good, there is urgent need for politics and economics to enter into a frank dialogue in the service of life, especially human life.

Another of Pope Francis’ guiding principles is the need for more long-term thinking. He believes that politics and business have been dominated by short-term thinking for too long, making important changes difficult. He speaks often of intergenerational solidarity and the need to consider future generations in our decisions today.

The myopia of power politics delays the inclusion of a farsighted environmental agenda within the overall agenda of governments.

Caring for ecosystems demands farsightedness, since no one looking for quick and easy profit is truly interested in their preservation.

Pope Francis says that it is wrong to believe that market-based solutions are always the best solutions.

Environmental protection cannot be assured solely on the basis of financial calculations of costs and benefits. The environment is one of those goods that cannot be adequately safeguarded or promoted by market forces.

We need to reject a magical conception of the market, which would suggest that problems can be solved simply by an increase in the profits of companies or individuals. Is it realistic to hope that those who are obsessed with maximizing profits will stop to reflect on the environmental damage which they will leave behind for future generations?

As an alternative to market-based solutions, Francis suggests treating the climate and other important aspects of nature as common goods (a term he repeats twenty times throughout the document). Nobel economist Elinor Ostrom has documented hundreds of examples of communities organizing their resources as commons. For this to work, another important principle that Pope Francis stresses throughout Laudato Si is the need for subsidiarity—that people affected by decisions should be involved in making those decisions. Too much environmental and social destruction has been caused by decisions being made by people thousands of miles away who will never live with the results of those decisions.

Laudato Si is an important document written at an important time in the history of the cosmos. With the vast reach of the papacy, I hope it and Pope Francis’ exhortations will serve as a wake up call for many and a manual for change for those dedicated to changing the world. He is clear that it is important that we act now.

The pace of consumption, waste and environmental change has so stretched the planet’s capacity that our contemporary lifestyle, unsustainable as it is, can only precipitate catastrophes, such as those which even now periodically occur in different areas of the world. The effects of the present imbalance can only be reduced by our decisive action, here and now. We need to reflect on our accountability before those who will have to endure their dire consequences.

 


 

David Kane (João Pessoa, Brazil) is a researcher for the Faith-Economy-Ecology project of the Maryknoll Office for Global Concerns (MOGC). As a Maryknoll lay missioner from 1995 to 2012, he served in Brazil working with recyclers in city dumps and with the Jubilee Brazil campaign, as well as in Washington, D.C. Dave helped found Faith, Economy, Ecology, Transformation, a group of mostly faith-based organizations and individuals inspired to assist in the transition to a more sustainable and equitable economy. Currently, Dave educates and advocates for economic justice, particularly around trade, Latin America, and ecological economics. (David Kane photo credit: Rick Reinhard)

 

What About Innovating Beyond the Growth Trap? A Challenge to the Ecofiscal Commission’s Growth Fixation

By James Magnus-Johnston

James Magnus-JohnstonA new voice has emerged recently in Canada called the “Ecofiscal Commission,” which could have the funding, clout, and determination to steer the country in a more promising direction. The group includes high-profile economists, former political leaders, and high-powered financiers. They define “ecofiscal policy” as something that “corrects market price signals to encourage the economic activities we do want (job creation, investment, and innovation) while reducing those we don’t want (greenhouse gas emissions and the pollution of our land, air, and water).” There seems to be a semblance of steady state thinking among this otherwise rather conventional lot.

Not so fast. The Ecofiscal Commission recently clarified that it “believes that our economies can continue to grow, even as we improve the environment by polluting less and using our natural resources more efficiently.” I found it noteworthy that this group of high-profile individuals decided that it was necessary to address the question of growth. Perhaps that’s because folks like myself don’t believe their policies are sufficient to address 21st century challenges, such as anthropogenic climate change and mass extinction.

One of their commission members, Dr. Dick Lipsey, is a “renowned expert in the field of economics and innovation,” and Professor Emeritus of Simon Fraser’s Department of Economics. In a recent Ecofiscal blog post, he rehearsed a standard narrative of innovation and technological progress that many ecological economists are familiar with. His narrative makes mention of neither the rebound effect nor of exactly what technologies will systematically reduce our material footprint. He even seems to suggest that if we don’t grow the economy, our health outcomes will decline due to a lack of medical innovation.

Locomotive.SMU, Central Univ. Libraries, DeGolyer Library

“It is wholly a confusion of ideas to suppose that the economical use of fuel is equivalent to a diminished consumption. The very contrary is the truth.” -William Stanley Jevons. Photo Credit: Southern Methodist University, Central University Libraries, DeGolyer Library.

He goes on to write about how “those who, like this commentator, think only of today’s commodities and today’s technologies, do not see the possibilities of raising living standards, while also dealing with pollution, through technological advance.” This seems straightforward enough—we don’t know what we don’t know. New technologies will emerge over time. He then proceeded to make a sweeping claim by listing a number of technologies that have made life more convenient, including “dental and medical equipment, antibiotics, bypass operations, safe births, control of genetically transmitted diseases, personal computers, compact discs, television sets, automobiles, opportunities for fast and cheap world-wide travel, air conditioning…” And so on. For the record, I’m quite happy for all of these advances, yet I still don’t see how anything on this list is addressing our self-inflicted mass extinction, though I suppose it’s making us comfortable in the meantime.

I could spend time addressing the factual basis of his claim that innovation requires growth, but we’ve been doing that since the 1970s, when Henry Wallich discounted the findings of Limits to Growth (DH Meadows et al.), arguing that technology would save us from the ecological crisis. We’re still waiting for this claim to ring true, and there’s a raging contemporary debate, which speaks to some lingering uncertainty about the claim. For my part, I see the invention of new technology as a response to a specific technical problem (or set of problems) rather than merely the offspring of pro-growth economic conditions.

What I find far more curious is (a) why Dr. Lipsey’s sweeping claim avoids mention of mass extinction or climate change; and (b) how this opinion can reflect the voice of so many high-profile public figures. It is true that, as Lipsey writes, “…our Victorian ancestors could not have imagined what to do with ten times as much of all of the goods that they knew about.” Yet it is also true that we have far more than ten times the goods that they knew about, and that our aggregate material footprint is still going up. Efficiency gains are a “feel good” story, but the gains have yet to reduce our aggregate material footprint at the global level.

I’m not an ideological enemy of innovation or entrepreneurship. In fact, I’m a bit of a techno-geek—I (rather shamefully) like new technologies and toys. I get irrationally excited when I see developments in green technology and transportation, and I’ve started a business. I can’t wait to use a hyperloop. But, as Lewis and Conaty write in The Resilience Imperative, I embrace the principle that efficiency without sufficiency is lost. Or to put it another way, it feels intellectually dishonest to suggest that efficiency has the potential to deliver us from a cultural propensity for overconsumption. I’m not certain why we should focus our energy on miniaturizing goods or “cleaning” our production process to the exclusion of simply consuming less. We need both.

Underpinning some of Dr. Lipsey’s claims is the epistemological assumption that innovation is merely a technological, material, or financial phenomenon. What precludes us from innovating ethically and socially, towards more desirable ends? John Maynard Keynes considered the day when society could focus on happiness and well-being rather than economic growth. He wrote, “The day is not far off when the economic problem will take the back seat where it belongs, and the arena of the heart and the head will be occupied or reoccupied, by our real problems—the problems of life and of human relations, of creation and behavior and religion.” If innovation is so predetermined, why might one suggest it is possible to innovate technologically, but not towards a more sustainable economic size? That is, after all, what this growth debate is really all about.

I can’t also help but wonder whether or not Dr. Lipsey recognizes that his narrative emerged during a time when one could not see or feel the effects of a deteriorating planetary life support system. I don’t blame him for his choice to rehearse this narrative—like many 20th century thinkers, his whole identity has been constructed to promote the idea of growth. But at some point, we will all need to accept our planetary prognosis and act accordingly. It’s become exceedingly clear that price signals alone won’t preserve forests, oceans, or climate stability. Peter Victor has argued that while D.H. Meadows et al. possibly underestimated the price-mechanism’s role in adjusting economic outcomes, their critics have overestimated it.1 By the time we’ve settled on a carbon price, the planet will already have become several degrees warmer and we’ll no longer have the luxury of technocratic tinkering. Behavioral economists have also debunked the myth that humans are motivated only by price signals. Human beings are complex, irrational actors who are influenced by far more than just the almighty dollar. Many of us have given up on the neoclassical paradigm precisely because of this new knowledge. Call it innovation.

It’s not necessarily true anymore that economic growth increases our incomes and always transforms our lives for the better. Today, some features of economic growth are increasing the incomes of the richest, stagnating the incomes of the poorest, and depleting the innovative spirit of the economy. Who has the time to worry about climate change and mass extinction when they’re just getting by or more concerned about how to cash their next pension check? Ask any Greek citizen.

Perhaps we can be thankful that growth didn’t stop in 1900 or 1950, as Dr. Lipsey argues. But this isn’t 1950. We have to solve a new set of problems. There’s never been a better time to innovate the discipline of economics, and with it, our definition of progress.

 

 

Five Myths About Economic Growth

by Brian Czech

Brian CzechMyth #1. It’s economic.

To be economic, something has to be worth more than it costs. Economic activity, per se, is more beneficial than detrimental. Technically speaking, “marginal utility is greater than marginal disutility.”

If you liked a rug, but liked your grandkids more, it wouldn’t be smart to grab the rug out from under them. That’s basic microeconomics. Yet if we look around and reflect a bit, doesn’t it seem like all that economic activity is pulling the Big Rug out from the grandkids at large? Water shortages, pollution, climate change, noise, congestion, endangered species… it’s not going to be a magic carpet ride for posterity.

Growth was probably economic for much of American history. But we have to know when times have changed and earlier policy goals are outdated. In the 21st century, when we’re mining tar sands, fracking far and wide and pouring crude oil by the ton into the world’s finest fisheries, trying to grow the economy even further is looking like a fool’s errand. That’s basic macroeconomics.

Myth #2. Economic growth is often miraculous.

Right now we’ve got the Chinese miracle. We’re supposed to be on the cusp of an Indian miracle. Seems like we already had a more general Asian miracle, having to do with “tigers.”

We’ve had Brazilian, Italian, Greek (yes Greek), Spanish and Nordic miracles. There’s been the Taiwan miracle, the miracle of Chile and even the Massachusetts miracle. Don’t forget the earlier Japanese miracle and more than one historic German miracle.

Let’s hope these aren’t the kinds of miracles they use to determine sainthood. Saint Dukakis, anyone?

No, economic growth was never, anywhere, a “miracle.” It’s never been more than increasing production and consumption of goods and services in the aggregate. It entails an increasing human population or per capita consumption; these go hand in hand in a growing economy. It’s measured with GDP.

Whoop-de-do, right? Maybe Wall Street investors and journalists are an excitable lot, and it’s easy enough to be surprised by a growth rate, but “miracle?”

Container ship.NOAA's National Ocean Service

Photo Credit: NOAA’s National Ocean Service

 

Myth #3. Growth isn’t a problem for the environment, because we’re dematerializing the economy.

Now that would be a miracle.

Let’s get one thing straight: The economy is all about materials. “Goods,” in other words. Oh sure, services matter too. But the vast majority of services are for purposes of procuring, managing or enjoying our goods.

The biggest service sector, transportation, is responsible for enormous environmental (and social) impacts. Transportation is instructive, too, about the relationship between goods and services. People don’t line up at cash registers demanding random acts of transportation. No, it’s all about moving materials—goods or people—from point A to point B, and moving them economically. Every form of transportation takes energy as well as copious supplies of materials (for vehicles and infrastructure) and space.

With all the talk of “de-materializing,” surely there must be services that transcend the physical, right? What about the Information Economy?

Myth #4. The human economy went from hunting and gathering through agriculture and on to manufacturing, and finally to the Information Economy.

Don’t forget our lesson from the transportation sector: no transportation for transportation’s sake. In the “Information Economy,” what’s all that information going to be used for? If it’s not going to be used in activities such as agriculture and manufacturing (and transportation) how is it going to matter for economic growth?

The fact is, there never was—or always was—an information economy. Pleistocene hunters needed to read mammoth tracks more than we need to read our Twitter feed.

Now when it comes to processing information, the computer was more or less a “revolutionary” invention, like the internal combustion engine was for transportation. But what’s less material about it? Just as today’s hunters have semi-automatic rifles with high-power scopes, they have (material) computers that help them gather information for buying more (material) guns, scouting more (material) terrain and shooting more (material) deer. Anything about that seem greener than before?

Information has proliferated alright, in lock step with the material goods and services it’s been used for. Yet to speak of the “Information Economy” seems like grabbing for some type of economic miracle, and we’ve all seen how cheap miracles are in economic rhetoric.

Myth #5. At least economic growth is egalitarian, because a rising tide lifts all boats.

Once upon a time the rising tide metaphor may have had some merit. In the 21st century—think resource wars, climate change, endang­ered species—it’s more like a rising tide flooding all houses. Which brings us back to Myth #1.

It seems like all the talk of economic growth was overblown, more the result of Wall Street excitement and political rhetoric than sober thought. Maybe what we really want is economic slenderizing.