By Herman E. Daly
Notes
- Relying on growth in this way might be fine if the global economy existed in a void, but it does not. Rather the economy is a subsystem of the finite biosphere that supports it
- Evidence shows that the US may already have entered the uneconomic growth phase
- Most contemporary economists do not agree that the US economy and others are heading into uneconomic growth, largely ignoring the issue of sustainability and trust that because we have come so far with growth
- Mainstream (known as Neoclassical) economists consider sustainability to be a fad and are overwhelmingly committed to growth
- Any subsystem, such as the economy, must at some point cease growing and adapt itself to a dynamic equilibrium, something like a steady state
- Birth rates must equal death rates, and production rates of commodities must equal depreciation rates
- Ecological footprint studies show that the total energy and materials needed to maintain and replace our artifacts has also vastly increased
- Establishing and maintaining a sustainable economy entails an enormous change of mind and heart by economists, politicians and voters, one might well be tempted
- To implement such an economy, we must specify just what is to be sustained from year to year. Economists have discussed five candidate quantities: GDP, "utility", throughput, natural capital and total capital (the sum of natural and man-made capital)
- The sustainable economy must at some point stop growing, but it need not stop developing
- Two broad types of capital exist -natural and man-made
- The right to deplete sources such as the atmosphere is no longer a free good but a scarce asset that can be bought and sold on a free market, once its initial ownership is decided
- The cap-and-trade system is an example of the distinct roles of free markets and government policy
- GDP growth. Because of qualitative improvements and enhanced efficiency, GDP could still grow even with constant throughput-some think by a great deal
- The Financial sector. In a sustainable economy, the lack of growth would most likely cause interest rates to fall
- Trade. Free trade would not be feasible in a world having both sustainable and unsustainable economies
- Taxes. A government concerned with natural resources more efficiently would alter what it taxes
- In a sustainable economy, maintenance and repair become more important
- Happiness is one of the driving forces of unsustainable growth has been the axiom of insatiability-people will always be happier consuming more
Summary
The reliance of the growth for the global economy and seeing that it is a subsystem of the finite biosphere that supports it. Most contemporary economists don't agree that the US economy and others are heading into uneconomic growth, largely ignoring the issue of sustainability and trust that because we have come so far with growth. Growth seems to be a very big deal as Neoclassical Economists consider sustainability to be a fad as they have become overwhelmingly committed to this change. Everything matters especially as humans take very big concern in their ecological footprint. The key point that they are trying to maintain is a sustainable economy entails an enormous change of mind and heart by economists, politicians and voters, one might well be tempted. The goal is to be able to have a sustainable economy with growth stop at one point yet still continue to develop. To be able to achieve a great economy, we must figure out what needs to be sustained from year to year starting slow and later moving onto more.
Opinion
In my opinion this is a big concern as this shows the future of planet Earth with our standings. Our global economy has gotten so large now that society won't be able to pretend that it truly operates within a limitless ecosystem. We have to work on maintaining a great environment that will in the end be sustainable while keeping a balance. The important thing to do is making the right choices for our future as we need to reduce each and everyone of our ecological footprints. Establishing and maintaining a sustainable economy entails an enormous change and should be seen as a crucial part to get anywhere. We must spread awareness of what is going on and focus on our planet.