Posts


Where Does Inflation Hide?

By Herman Daly

The talking heads in the media explain the recent fall in the stock market as follows: A fall in unemployment leads to a tight labor market and the prospect of wage increases; wage increase leads to threat of inflation; which leads the Fed to likely raise interest rates; which would lead to less borrowing, and to less investment in stocks, and consequently to an expected fall in stock prices.


What is Wrong with a Zero Interest Rate?

by Herman Daly

The stock market took a dip, so the Fed will likely continue to keep the interest rate at zero, in conformity with its goal of supporting asset prices by quantitative easing. What is wrong with a zero interest rate? Doesn’t it boost investment, growth, and employment?

There are many things wrong with a zero interest rate. Remember that the interest rate is a price paid to savers by borrowing investors.


Would the Steady State Economy Be a Miracle?

by Herman Daly

Many people think that advocating a steady state economy is like wishing for a miracle. I understand their reasoning and take their point—in the present era of growthism, it does seem rather like advocating a miracle. But that raises the question of exactly what is a miracle? And how many other miracles are we wishing for these days? Of course, science, by definition of its method, rules out the existence of miracles,


Thoughts on Pope Francis’ Laudato Si

by Herman Daly

As a Protestant Christian, my devotion to the Catholic Church has been rather minimal, based largely on respect for early church history and for the love of an aunt who was a nun. In recent times, the Catholic Church’s opposition to birth control, plus the pedophile and cover-up scandals, further alienated me. Like many others, I first viewed Pope Francis as perhaps a breath of fresh air, but little more. After reading his encyclical on environment and justice,


Seismic Political Shifts Reveal Desire for Serious Change

by James Magnus-Johnston

If you demonstrate to people that the NDP [New Democratic Party] can win in Alberta, suddenly anything seems possible. —Paul Fairie, University of Calgary political scientist

 

On the problematic political spectrum, neither the right nor the left have become wholesale champions of the steady state economy. Then again, embracing something perceived as ‘new’ has never been the strong suit of the politician.


Cold War Leftovers

Daly challenges the assertion that a steady-state economy is inherently capitalistic and must be instead be based on a socialist system.


Growth and Laissez-faire

Laissez-faire takes on a new meaning — it is the ecosystem, not the economy that must be “left alone” to manage itself and evolve by its own rules.


Approaching a Steady State Economy, Part 2 — Clean Clothes

What can a laundry experiment in one household teach us about economizing and innovating in the broader economy?