The Steady State Path to Real Prosperity A Bigger Economy Doesn’t Mean a Better Economy .
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Transcript of The Steady State Path to Real Prosperity A Bigger Economy Doesn’t Mean a Better Economy .
The Steady State Path to Real Prosperity
A Bigger Economy Doesn’tMean a Better Economy
www.steadystate.org
by mattyp
by treehouse1977
The Nature of Growth
Grow \ˈgrō\ verb1.To spring up and develop to maturity2.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: ChildrenRate: Normal
Growth is desirable.
Context 1: Child Rate 1: Very fast
Context 2: AdultRate 2: Slow
Growth isundesirable.
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
Wasteproducts
$
$Wasteproducts
$$$
$$$
Resources WasteResources Waste
Context: Thermodynamic Limits to Growth
Time
GD
P Natural capital allocatedto theeconomy
Naturalcapital allocatedtonature
KC a r r y i n g C a p a c i t y
E c
o n
o m
i c
G r
o w
t h
Context: Ecological Limits to Growth
Context: Disappointing Results of Growth
Income per person
Happiness(index)
Source: Inglehart andKlingemann (2000)
Context: Disappointing Results of GrowthU
.S.
Per
cen
tag
e V
ery
Hap
py
Real incomeper person
Percentage very happy
Source: Layard (2005)
Context: Disappointing Results of Growth
Context: Disappointing Results of Growth
Rate of Increase
World GDP (1990 millions of dollars), source: Angus Maddison
Desirability of Growth
by mattyp
Steady State Economy: Better not Bigger
• Constant (or mildly fluctuating) population
• Constant (or mildly fluctuating) percapita consumption
• Constant (and sustainable) throughputof energy and materials
• Sustainable scale
• Fair distribution of wealth
• Efficient allocation of resources
• High quality of life
• 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?
What Does a Steady State Economy Look Like?
Less of this......and more 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?
Less of this......and more 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?
Less of this......and more of this.
What Does a Steady State Economy Look Like?
Less of this......and more of this.
by treehouse1977
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.
The Transition from Growth to a Steady State
Policy Change – The Right Goal
Policy Change - Exemplary Conservation
"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.”
Copyright: The Onion
?
Policy Change: Technology
Appropriate Use of Technology
Bob Adelman, Magnum Photos
Getting Started
What Can You Do?
1. Publicly voice your opinion.
Sign the Positionon 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.
5. Ask a lot of questions.
What Can You Do?
www.steadystate.org