economic growth

How can we link monetary systems to the natural world?

by

Money may not grow on trees, but it does grow at a much faster rate – particularly when created by banks as interest-bearing debt. In modern economies, nearly all money is created in this way. To maintain a stable money supply, debtors must repay both the initial loan and the interest on the loan. This means we need either economic growth at a rate in line with the interest on the debt and/or inflation, both of which we’ve had a great deal of in the past century. But back in the real, natural world, there are limits to growth. The ultimate limit is energy, something all production requires. Humans require food to survive and re-produce. To create this food we need energy, energy that comes, ultimately, from the sun.

Economic growth, population growth and climate change

by

Recent work cited in our report shows that the remaining global fossil fuel resources (mainly coal) would produce an enormous 9-13 trillion tonnes of greenhouse gas emissions. If all of it were burnt without capturing the carbon it would be enough to raise the average global temperature some 18 degree C, may be more. This 9-13 trillion tonnes is large compared with the 0.5 trillion tonnes already produced since the start of the Industrial Revolution. Nearly half of this 0.5 trillion tonnes remains in the atmosphere causing serious problems resulting from a warming of only 0.6 degree C. A recent report by independent consultants shows that there are planned mega fossil fuel projects which would add nearly 2 trillion tonnes of carbon by 2020 . Discharging all of this to the atmosphere would set the world on a path to warming 5 -6 degree C, already the stuff of nightmares. Discharging the additional 7-10 trillion tonnes would be an act of insanity.

Sliding down the slippery slope: A truth too big for Obama

by

Now, the good news is, we can make meaningful progress on this issue [climate change] while driving strong economic growth.” With that sentence from his State of the Union address, President Obama capitulated to paltry cynicism. Alas, he will not be the president who finally comes clean on the trade-off between economic growth and environmental protection. Obama is now committed to win-win, green-growth rhetoric.

The richer you are, the happier you are?

by

Today’s column from Allister Heath cites recent research in the field of well-being economics to argue that the best way to promote happiness is to maximise economic growth. While positive to see economic commentators like Heath making use of well-being research, his article, which implies that well-being evidence supports "a single-minded obsession with expanding the economy” approach by government, is completely flawed. Not only does Heath ignore swathes of evidence regarding the factors that contribute to well-being, it is pretty clear that Heath doesn’t understand the research he was referring to.

The siren song of the robot

by

Indeed, the world now faces a double constraint to any further revolutionary gains to physical production: resource scarcity and the diminishing supply of the cheapest global labor, as wages in the Non-OECD have most likely seen their low. That we have reached this juncture probably explains why a new idea has arisen: The advent of robots.

2013: Beginning of Long-Term Recession?

by

We have been hearing a lot about escaping the fiscal cliff, but our problem isn’t solved. The fixes to date have been partial and temporary. There are many painful decisions ahead. Based on what I can see, the most likely outcome is that the US economy will enter a severe recession by the end of 2013.

The Outlook for Steady State Economics in 2013

by

The Center for the Advancement of the Steady State Economy (CASSE) has been the leading organization in advancing the steady state economy as a policy goal for nearly ten years. Maybe that’s not saying much, because CASSE has been the only organization focused on advancing the steady state economy. But times, they are a-changin’.

Conflict and change in the era of economic decline: Part 5 – A theory of change for a century of crisis

by

If groups seeking to make the post-carbon transition go more smoothly and equitably are to have much hope of success, they need a sound strategy grounded in a realistic theory of change. Here, briefly, is a theory of change that makes sense to me.

No place sacred: ENERGY (review)

by

They say a picture is worth a thousand words. With that in mind, the 195 color, mostly full page — often double page — photographs in the Post Carbon Institute’s latest book, ENERGY: Overdevelopment and the Delusion of Endless Growth, speaks volumes beyond its gigantic sized pages about the energy and environmental predicament humanity is immersed in today.