Transcript Slide 1

A Bigger Economy Doesn’t
Mean a Better Economy
The Steady State Path to Real Prosperity
www.steadystate.org
by mattyp
by treehouse1977
The Nature of Growth
Grow \ˈgrō\ verb
1.To spring up and develop to maturity
2.To increase in size
Desirability of growth depends upon...
1. The entity that’s growing: e.g., a human body
2. The context: e.g., stage of life
3. The rate: e.g., slow, normal, fast
Context: Children
Rate: Normal
Growth is desirable.
Context 1: Child
Rate 1: Very fast
Context 2: Adult
Rate 2: Slow
Growth is
undesirable.
Growth of Economic Activity
For economic growth to occur, what exactly is getting bigger?
 Production and consumption of goods and services (more stuff
and more activity)
 Gross domestic product (GDP), the final dollar value of goods and
services produced
 Population, consumption per person, or both.
USA – 14,260,000
Japan – 4,924,000
China – 4,402,000
Germany – 3,668,000
France – 2,866,000
UK – 2,674,000
Italy – 2,399,000
Russia – 1,757,000
Spain – 1,683,000
Brazil – 1,665,000
Canada – 1,564,000
India – 1,237,000
Source: CIA Factbook
GDP Growth
Context for GDP Growth
Context: Thermodynamic Limits to Growth
$$$
$
Resources
Resources
Waste
Waste
$
products
products
$$$
Waste Waste
Context: Ecological Limits to Growth
GDP
K
Carrying Capacity
Natural
capital
allocated
to
nature
Natural
capital
allocated
to the
economy
Time
Context: Disappointing Results of Growth
Happiness
(index)
Source: Inglehart and
Klingemann (2000)
Income per person
U.S. Percentage Very Happy
Context: Disappointing Results of Growth
Real income
per person
Percentage
very happy
Source: Layard (2005)
Context: Disappointing Results of Growth
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
1947
12.0
GDP
10.0
Unemployment
8.0
6.0
4.0
2.0
0.0
1954
1961
1968
1975
1982
1989
1996
2003
Context: Disappointing Results of Growth
Rate of Increase
World GDP (1990 millions of dollars), source: Angus Maddison
60,000,000
50,000,000
40,000,000
30,000,000
20,000,000
10,000,000
1
1600
1870
1940
1952
1955
1958
1961
1964
1967
1970
1973
1976
1979
1982
1985
1988
1991
1994
1997
2000
2003
2006
0
Desirability of Growth
by mattyp
Steady State Economy: Better not Bigger
Features of a Steady State Economy
• Constant (or mildly fluctuating) population
• Constant (or mildly fluctuating) per
capita consumption
• Constant (and sustainable) throughput
of energy and materials
Aims of a Steady State Economy
• Sustainable scale
• Fair distribution of wealth
• Efficient allocation of resources
• High quality of life
What Does a Steady State Economy Look Like?
Not too big, not too small – just right!
• Right-sized
• Smaller population
• New measures of success
• Different labor/capital mix
• Shorter working hours/more leisure
• More nature
• Fewer status goods
• Healthier food systems
• Better use of technology
• More locally supplied goods and services
• Science-based decision making
• Less debt
• Less production, more maintenance
What Does a Steady State Economy Look Like?
...and
more
of this.
Less
of this...
What Does a Steady State Economy Look Like?
...and
more
of this.
Less
of this...
What Does a Steady State Economy Look Like?
...and
more
of this.
Less
of this...
What Does a Steady State Economy Look Like?
...and
more
of this.
Less
of this...
What Does a Steady State Economy Look Like?
Less
of this...
...and
more
of this.
What Does a Steady State Economy Look Like?
...and
more
of this.
Less
of this...
by treehouse1977
The Transition from Growth to a Steady State
1. Start with given conditions.
2. Employ gradualism.
3. Change policies.
• Exemplary network of conservation lands
• Cap-auction-trade systems for basic resources
• Limits on the range of inequality in income distribution
• Ecological tax reform
• Move to 100% reserve requirements
• Elevate the commons sector
• Reform national accounts
4. But don’t put the cart before the horse.
• We need widespread public support.
• We need all those analytical economic minds working on the new paradigm.
Policy Change – The Right Goal
Policy Change - Exemplary Conservation
Copyright: The Onion
"Last year's introduction of Dentyne Ice Cinnamint gum, right on the heels of
the extinction of the Carolina tufted hen, put product diversity on top for the
first time.”
Policy Change: Technology
Economic growth
(increasing population
and consumption)
Limits to growth
(dwindling
resource base)
Technological
method of
managing limits
?
Breathing room
Appropriate Use of Technology
Getting Started
Bob Adelman, Magnum Photos
What Can You Do?
1. Publicly voice your opinion.
Sign the Position
on Economic Growth.
What Can You Do?
2. Get informed.
www.steadystate.org
What Can You Do?
3. Get involved with CASSE.
Become a member.
Become an outreach volunteer.
What Can You Do?
4. Think and act like a steady stater.
What Can You Do?
5. Ask a lot of questions.
www.steadystate.org