Prosperity Without Growth Money Quotes

It's rare that you see a government agency in this country or any speak the truth when "conventional wisdom" is so diametrically opposed to what needs to be said.  In this case, the "conventional wisdom" is that we can continue to seek constant economic growth in a sustainable way.  It's a myth all of us repeat to each other almost as though our existence depended on it, because the signs are all around us that this simply is not possible.  I guess constant reinforcement is necessary to maintain mass hallucinations.

Despite all that, our cousins in the United Kingdom have had a commission reporting directly to the Prime Minister that is attempting to do just that.  You can read the whole report here, but I'm going to share some of the money quotes.

In these circumstances, a return to business as usual is not an option. Prosperity for the few founded on ecological destruction and persistent social injustice is no foundation for a civilised society. Economic recovery is vital. Protecting people’s jobs – and creating new ones – is absolutely essential. But we also stand in urgent need of a renewed sense of shared prosperity. A commitment to fairness and flourishing in a finite world.

Imagine a political leader in the US saying something like that.  It goes against almost everything we've been raised to believe as Americans.  Suggesting that the primary function of government IS NOT constant expansion of material gain for its citizens would be political suicide in this country; and that's just in the foreword.

Prosperity consists in our ability to flourish as human beings – within the ecological limits of a finite planet. The challenge for our society is to create the conditions under which this is possible. It is the most urgent task of our times.

The 12 steps to a sustainable economy summarized:

1. Developing macro-economic capability
2. Investing in public assets and infrastructures
3. Increasing financial and fiscal prudence
4. Reforming macro-economic accounting
5. Sharing the available work and improving the work-life balance
6. Tackling systemic inequality
7. Measuring capabilities and flourishing
8. Strengthening human and social capital
9. Reversing the culture of consumerism
10. Imposing clearly defined resource/emissions caps
11. Implementing fiscal reform for sustainability
12. Promoting technology transfer and international ecosystem protection

The report touches on our current economic issues and how we got here.  In summary, debt driven consumerism.  It points out that for the US to have a negative savings rate, someone else must be saving a lot.

Not all economies were equally susceptible to this dynamic. Indeed it’s a feature of the system of debt that for one part of the global economy to be highly indebted, another part must be saving hard. During the first decade of the 21st Century, the savers were largely in the emerging economies. The savings rate in China during 2008 was around 25% of disposable income, while in India it was even higher at 37%.

A point made throughout the report is that it's only been in recent years where prosperity was defined in purely economic terms.  In fact, in some ways economic expansion has been detrimental to the well being of humans.  So how to redefine it?

Accordingly, this chapter searches for a different kind of vision for prosperity: one in which it is possible for humans beings to flourish, to achieve greater social cohesion, to find higher levels of wellbeing and yet still to reduce their material impact on the environment.

Damned Commies.

But from at least the time of Aristotle, it has been clear that something more than material security is needed for human beings to flourish. Prosperity has vital social and psychological dimensions. To do well is in part about the ability to give and receive love, to enjoy the respect of your peers, to contribute useful work, and to have a sense of belonging and trust in the community. In short, an important component of prosperity is the ability to participate freely in the life of society.

Imagine that, a source of happiness other than money.  I know it's hard to imagine but it's slightly less depressing putting on shoes some Chinese kid made for 1/100th of a penny. 

But ultimately this is what it's all about.  While changing our behavior at such a basic level sounds frightening; like it's all about sacrifice and perhaps vaguely dystopian, but there is actually a bright side.

The rewards from these changes are likely to be significant. A less materialistic society will be a happier one. A more equal society will be a less anxious one. Greater attention to community and to participation in the life of society will reduce the loneliness and anomie that has undermined wellbeing in the modern economy. Enhanced investment in public goods will provide lasting returns to the nation’s prosperity.

I feel better already.

PS  What the heck does "anomie" mean?

Related articles by Zemanta

• Prosperity without economic growth! (isiria.wordpress.com)