Insight and inspiration in turbulent times.
In this article I connect the fall in the growth rate, with its roots in the rising costs of energy extraction and generation, to declining resilience in the economic system. These are in turn related to a more conflict ridden geo-politics.
This is the thing about ecology, you see: everything is connected. The biomass bone is connected to the biogeochemical bone is connected to the insect bone. And that’s why aggregate material flows are in fact an important indicator of what’s happening to our planet.
Because Positive Money are so selective in both their characterisation of the springs of capitalist accumulation and in their analysis of the impact of economic activity on the ecosystem, they end up proposing a scheme that at best will have little positive impact and could actually make matters worse.
Right now, due to the bipartisan obsession with economic growth, Democrats look like losers at the GDP racetrack, racist sentiments are fair game again, and the rapacious pursuit of growth is liquidating the environment. Democrats, racial minorities, and environmentalists can pine independently, “Woe is me.”
“Decoupling”: are we really so smart that we can do more with less? Apparently not: we can paint things in green, but it is not the same thing. But so is life and happy 2018 to everybody!
I suggest we join Morin and Pogany in renouncing the irrational exuberance that expects irresistible progress and economic growth extending to infinity. To break out of this cognitive prison habit may be very challenging indeed. However, at some point there will be no choice. It’s time to stop digging that hole that we think is taking us up the mountain
Some people claim that humans—called breatharians—can live on air alone. Others claim we can have economic growth without increasing our resource use, so-called decoupling. Neither claim withstands scrutiny though here I am only going to deal with the second one.
Surely emphasis on increasing well-being should prevail over creation of investment opportunities that bring negative externalities and few benefits to the municipality. Other worlds are possible, and responsive policy making would be a chance to shape those possibilities.
Environmentalists are hypocrites, right? They condemn all sorts of behaviours like driving cars or taking plane flights in which they themselves indulge, and they want to deny poor people the right to the same luxuries by saying that the economic growth which promises to widen access to such luxuries is unsustainable.
There is a very real trade-off between the rate at which we address climate change and the amount of economic growth we can expect during the transition to a low-carbon economy, but most economic models insufficiently address this trade-off, and thus are incapable of assessing the transition.
One argument of those who defend growth is that growth is the natural and inevitable course of the economy. Liberated from governmental or other restrictions, and left to their own powers, entrepreneurs will make an economy grow, as they are endlessly inventive in growing their own incomes.
Continued exponential economic growth is impossible, but the S-curve of slowing growth followed by a steady state is not the only other alternative. If the goal is maintaining GDP at the highest possible level, then the S-curve is the best case scenario, but in today’s world that isn’t necessarily desirable or even possible.
