Economics in a full world
- The global economy is now so large that society can no longer safely pretend it operates within a limitless ecosystem. Developing an economy that can be sustained within the finite biosphere requires new ways of thinking.
- The economy must be transformed so that it can be sustained over the long run. It must follow three precepts:
1. Limit use of all resources to rates that ultimately result in levels of waste that can be absorbed by the ecosystem.
2. Exploit renewable resources at rates that do not exceed the ability of the ecosystem to regenerate the resources
3. Deplete nonrenewable resources at rates that, as far as possible, do not exceed the rate of development of renewable substitutes.
- The problem - the economic status quo cannot be maintained long into the future. If radical changes are not made, we face loss of well-being and possible ecological catastrophe.
- A sustainable economy requires a “demographic transition” not only of people but of goods— production rates should equal depreciation rates.
- Free trade would not be feasible in a world having both sustainable and unsustainable economies, because the former would necessarily count many costs to the environment and future that would be ignored in the growth economies
When the economy's expansion encroaches too much on its surrounding ecosystem, we will begin to sacrifice natural capital (such as fish, minerals and fossil fuels) that is worth more than the man-made capital (such as roads, factories and appliances) added by the growth. Evidence suggests that the US may already have enters the uneconomic growth phase. Relying on growth in this way might be fine if the global economy existed in a void, but it does not.
I think the economics might work, but honestly I'm not putting much hope on it because there are many selfish people in the world. They receive benefits from uneconomic growth. The more they've taken, the poor new generation will get.
So what?
- It's very important to know about which ways can create sustainability
What if?
- we followed full world economics?
Says who?
- Hermane E. Daly
What does this remind me of?
- The Lorax
- The economy must be transformed so that it can be sustained over the long run. It must follow three precepts:
1. Limit use of all resources to rates that ultimately result in levels of waste that can be absorbed by the ecosystem.
2. Exploit renewable resources at rates that do not exceed the ability of the ecosystem to regenerate the resources
3. Deplete nonrenewable resources at rates that, as far as possible, do not exceed the rate of development of renewable substitutes.
- The problem - the economic status quo cannot be maintained long into the future. If radical changes are not made, we face loss of well-being and possible ecological catastrophe.
- A sustainable economy requires a “demographic transition” not only of people but of goods— production rates should equal depreciation rates.
- Free trade would not be feasible in a world having both sustainable and unsustainable economies, because the former would necessarily count many costs to the environment and future that would be ignored in the growth economies
When the economy's expansion encroaches too much on its surrounding ecosystem, we will begin to sacrifice natural capital (such as fish, minerals and fossil fuels) that is worth more than the man-made capital (such as roads, factories and appliances) added by the growth. Evidence suggests that the US may already have enters the uneconomic growth phase. Relying on growth in this way might be fine if the global economy existed in a void, but it does not.
I think the economics might work, but honestly I'm not putting much hope on it because there are many selfish people in the world. They receive benefits from uneconomic growth. The more they've taken, the poor new generation will get.
So what?
- It's very important to know about which ways can create sustainability
What if?
- we followed full world economics?
Says who?
- Hermane E. Daly
What does this remind me of?
- The Lorax