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,
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.
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,
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,
I didn’t set out to coin a phrase, but “trophic money” will be far handier than “money derived pursuant to the trophic theory of money.” The trophic theory of money is that money originates via the agricultural surplus that frees the hands for the division of labor into all the other economic activities, most basically manufacturing and services. It’s a theory of money that reflects not only the trophic structure of the economy—with manufacturing and services built upon a base of agriculture and extraction—but the fact that money is meaningless unless we have an agricultural surplus at the trophic base.
The saying “you are what you eat” is clearly true to a great extent, but there’s more to the story. The food we consume not only affects our being directly, but also the environment and the economy—and therefore us indirectly as well. Eating more vegetables and less meat and dairy is better for the health of most individuals here and now, and certainly for the health of the planet, now and for the long run.
By James Magnus-Johnston
The human economy doesn’t just mimic the economy of nature; it is part of it. It is woven directly into the ecological system of producers and consumers. Due to the technological prowess of Homo sapiens, though, the human presence dominates, threatening other species and the life support system of the planet. Human dominance over non-human life leads us to acknowledge some uncomfortable truths, particularly for proponents of “green growth.”
The first pertains to the loss of biodiversity.
By Brian Czech
The “circular economy” is a response to the environmental problems and resource shortages that arise as the human economy expands. The focus of the circular economy literature is on efficiency which, in terms of economic production, means more output per unit of input. All else equal, increasing efficiency means higher profits, too. That’s real motivation for the corporation.
Efficiency connects to the human propensity to innovate, too. From childhood on,
Markets are good for several things, but allocating ecosystem services is not one of them.
Money grows on trees — Brian Czech explains trophic structure in the economy and the origins of money.