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Mother Pelican
A Journal of Solidarity and Sustainability

Vol. 11, No. 3, March 2015
Luis T. Gutiérrez, Editor
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A New Economy for a Regenerative Society

Carlos Cuellar Brown

This article was originally published in
Transformation, 30 January 2015
under a Creative Commons License


Most of the products of our growth-addicted economy are useless, obsolete and unnecessary junk that do not contribute to our human purpose; on the contrary they impoverish, deplete and contaminate our eco-livelihood.

0315CuellarFarmersMarket.jpg
Time to end mass consumption. Flickr/Natalie Maynor. Some rights reserved.
Humanity needs a wide set of solutions as it transits the transformative path to a regenerative society. In the enactment of this transition, motivation and heart-felt commitment are central to civil action. As economist Andrew Simms reminds us: “when there is commitment, extraordinary things can be achieved.” These extraordinary things are the kind of spirit and urgency we need to spread as we chart this transition forward. The need to envision a desired endpoint for a new economy is central to this new paradigm.

The old economy based on aggregate growth has become uneconomic and is highly energy reliant and dependent on the endless consumption of Earth’s resources; it is also based on unlimited aggregate quantification that leads to an unmanageable and oversized economy. “Growth economies”, writes Herman Daly, “become an absurdity when their scales grow beyond the biophysical limits of their subsets.”

Unlimited growth is impossible

Modern economists say that a robust economy is one that continues to grow and grow. What they are also saying is that the economic structure needs to keep bursting at its seams, growing imperviously to create new markets. This is impossible in a closed system like Earth. Unlimited economic growth is not only impossible but it is also reckless and not based on biophysical reality. However for two centuries, growth economies have set the course, pegged to standard measurements representing GNP or GDP and other utilities. These economic indicators promote a society whose primary objective is economic expansion, which leads to wasteful hyper consumption.

To facilitate this expansion, our foremost economic architects have persuaded us to diligently and incessantly consume under the illusion that markets demand rules. This belief encourages the idea of limitless energy resources to sustain economic growth ad infinitum. We have come to accept this and unquestioningly go along with this business as usual, maximising consumption and aggregating quantities of industrial products to our national and individual capital debt.

As soon as a society accepts this doctrine and believes that more energy carefully managed will always yield more goods for more people, that society becomes locked in the wheel of consumption. Economic Growth values objects and products over human beings. Most of the resultant products of our growth-addicted economy are useless, obsolete and unnecessary junk that do not contribute to our human purpose; on the contrary they impoverish, deplete and contaminate our eco-livelihood.

If the rest of the world lived by US consumption standards we would need 4.1 Earth footprints worth of land and energy resources to run the operation. Past a threshold of economic growth, ever diminishing marginal utilities lead a society to the underdevelopment of its people; increasing environmental and social costs. As an example we need not look far to the underdeveloped neighbourhoods creeping out of our inner cities and towns as poverty increases proportionally to the growth of the rich corporations and plutocracies running the global economy.

Over-consumption leads to higher demands on non-renewable energy. In this process we have degraded our environment and eroded our social fabric; eternal economic growth is a failed system with biophysical limitations and no understanding of thermodynamic flux. In this sense Andre Simms reminds us of the “tensions between the physics of growth and the economics of unlimited growth.” In theory limitless growth is modelled on an open system, but Earth is enclosed in finite limitations, fluctuating marginally as a planetary ecosystem. The eco-footprint of our over-consumption habits are compromising the balance of this steady state structure. 

Time to talk about consumption

Reformulating our consumption habits and behaviours must be paramount as we go forward with a new economic vision. Embracing the notion that we will gain in humanity while consuming less, focusing on the maintenance and servicing, on the restoration and preservation of what we already have.

Becoming engineers and designers, planters and healers, we have to de-materialise production and promote the maintenance and longevity of products, rethinking consumption and incorporating growth to other sectors that have minimum energy impact and maximum social significance. We have to consider and re-organise industrial production, protect food autonomy, energy self-reliance, and the opportunity for business reorganisation in self-management ventures and quality investment.

We also really need a major “ethos” transformation from the great economic architects of our times; they must help correct the belief that growth economies will solve our precarious economic state. As Ivan Ilich has written, “the belief that economic growth at all costs will eradicate poverty and improve our lives endlessly implies a contradiction in the joint pursuit of equity and economic growth. Energy and social equity grow concurrently only to a point.” The new economy would instead increment subjective wellness standards as we shift the emphasis from money and economic growth to an emphasis on team spirit, stewardship and social equity. In 2009, the German president went some way to summarising this view, implying that “we should stop our fixation on economic growth and learn to live with less.”

The aggregate growth economy reached a certain point and brought improvement to the human experience, beyond which it has now become un-economic. At this place increasing energy consumption lessens substantially the equity of life for all of us.  Signs of this destruction are everywhere on Earth. The perversity of GDP is killing our planet, making humanity less equitable, futureless and on the whole more miserable.

Through this transition to the new economy the oil based power sector will begin to run primarily on renewable energies. In this capacity we have to reformulate energy reliance and integrate more and more renewables into the old system as it readjusts. Big benefits and qualitative growth for society will come when we improve renewable energy transmission lines, eliminating spillage, increasing storage capabilities and smart grid technologies.

Economic growth is not the same as economic development. Economic development has more to do with increasing social equity and human wellness. This social development functions much like knowledge shares in open source economies. These economic activities are low entropy, low energy dependent and work horizontally to develop well-being, general knowledge, self-reliance and problem solving skills. 

For a new economy to develop qualitatively, its baseline must strive for elevating social minimum and lowering drastically maximums for privilege. It must measure what really matters. Our goal as a healthy society is to have an economy that maximises well-being. Social equity comes in many forms, beginning with the securitisation of education and knowledge, health care, shelter, food autonomy and other liberties.  But how do you measure qualitative development, wellbeing, or happiness? How do we adjust regional, national and global economies to measure personal, social and environmental well-being?

Some economists are using new ways to measure equity in their societies. Happiness indexes are now being used in many countries. For example instead of GDP or GNP standards, the small Himalayan country of Bhutan is measuring personal, social and environmental well-being with an indicator known as “Gross National Happiness”. In the new rationale for economic development we will re-enact the classical views, which saw human kind as adapting gracefully to finitude interdependent with a steady state planet.

The perversity of GDP

So we need to get off the GDP or GNP system and begin to adopt this new economy where growth only functions in the realm of qualitative development, and this might take the form of downshifting and de-materialising production. This involves us making efforts to “grow, gather, preserve and cook; to repair, reuse, recycle and mend. Going back to making (and making do) this heralds a return to higher levels of purpose and thus wellbeing” – unlike in the growth economy where we buy stuff so we can impress people we don’t care about. In the new qualitative economy we will rediscover the nurturing and caring of our neighbours and communities, and we will harvest and make stuff to give away, for the better whole of our extended families.

The new rationale of downshifting the economy includes the structures of business and government whom will shrink their jurisdictions and breakup into smaller self-regulating constituents. The neighbourhood scale of the new economy will need a political system involved in reshaping and empowering local forces of production. From this seed we can include regional, national and global sectors and components of a larger society: “the new system begins with self government of small communities, village by village, town by town, region by region.” On this scale, communities will re-discover the participatory democratic subsets that keep personal interest in check.

These fundamental points and others need to be summoned as we engage in the transition to a new economy; notable economists of our times – names like Meadows, Daly, D’Escoto, and Bello have given us lists and axioms from which to start. Although incomplete and in need of further discussion, I will attempt to summarise 10 points worth discussing.

1) Develop a new economic “ethos” that stands for the common good of Humanity and Earth.

2) Bring the economy back to its due place in the complexity of society, with internal markets that return the epicentre of business to community.

3) Develop technology that is sustainable and retrofitting. Ecological tax-reform with the implicit notion that resources extracted from nature deplete our bio-system and should internalise external costs. To ensure social equity we must put limits on resource mining. 

4) Shift and reorganise production to re-use, maintain, restore, re-cycle, and design robust products with high product lifetimes, revitalising production of goods at the community scale.

5) Drop our consumption habits and moving away from an oil, coal, nuclear-based economy, improving energy strategies that help transition to a renewable based power grid. We can achieve high penetration of renewables by improving energy storage, transmission infrastructure, new resources, variability and grid flexibility; eliminating spillage by increasing our storage capacity.

6) Move to 100% reserve requirements, eliminate the fractional reserve banking and downgrade central banks, putting capital in the hands of community and lending cooperatives and away from private banks and clearing houses. Enclose the remaining commons of rival natural capital in public trusts and management.

7) Democratise all orders and social subsets, generating participatory democracies inside each circle. Self-determination will flourish in a civil society who controls and supervises the private sector and state.

8) Limit use of resources to rates that ultimately result in levels of waste that can be absorbed by the ecosystem. (Daly 2005) Create biotechnology that harvests waste, regenerates biomass, biodiversity and atmosphere, creating top soils and healthy water systems. 

9) Prevent war economics and predatory derivations. This includes redistribution of privilege capital and an honest revision of private property.

10) Empower a spiritual vision of the world that gives back a sense of transcendence and wonder. Engage in our formidable creative labour during this rather brief and minute transit aboard diminutive planet Earth.  

ABOUT THE AUTHOR

Carlos Cuellar Brown is a New York City time-based artist and essayist who has written on media art, social theory and metaphysics. He is currently a columnist for Second Sight Magazine out of the Netherlands and blogs here.




Potential New Allies in the Effort to Achieve
a Sustainable True Cost Economy


Brent Blackwelder

This article was originally published in
The Daly News, 11 February 2015
under a Creative Commons License

Those who want a true cost, steady state economy need some new, powerful allies. We need allies that stretch across the political spectrum, from liberal to conservative. We need allies that can speak from a values perspective to bring moral considerations to bear on the discussion.

Neither the environmental movement nor the progressive movement possesses enough political strength to overcome the most powerful economic interests in the world. These potent interests include the oil and coal industries, banks, agribusiness, mining and chemical companies, Wall Street, etc. Congress will not act on big economic changes because too many members depend on election money from these very same economic interests.

Faith-based communities could play an important role because they can reach across the conservative-liberal spectrum, have member congregations that convene on a weekly basis, and can speak with a moral voice that moves people to action. Such an approach may work well with the growing number focused on serious environmental problems because the root cause of many of such problems is the system of cheater economics that dominates today’s economy.

During the 1970s and 1980s, some of us worked with churches on various environmental concerns. These efforts have been expanding and today, the environment is a common topic among the faithful. For example, consider the mission statement of Interfaith Power & Light, established over a decade ago by Reverend Sally Bingham:

The very existence of life–life that religious people are called to protect–is jeopardized by our continued dependency on fossil fuels for energy. Every major religion has a mandate to care for Creation. We were given natural resources to sustain us, but we were also given the responsibility to act as good stewards and preserve life for future generations.

Interfaith Power & Light has engaged hundreds of congregations, has affiliates in 38 states, educated thousands of people of faith about the moral mandate to address global warming, and helped pass California’s landmark climate and clean energy laws. Christian environmentalists such as Matthew and Nancy Sleeth have formed an educational group, Blessed Earth, to equip faith-based communities to become better stewards of the earth and have written books about the duty of caring for creation, including Almost Amish; The Gospel According to the Earth; and Go Green, Save Green. To illustrate this point, I present a sample of five defects in today’s unsustainable economy, followed by the kind of response faith-based communities could make.

  • Defect: Assigning future generations close to zero value and obsessively focusing on the quarterly return. Rapacious commercial logging, for instance, can wipe out forests that are needed to sustain future generations with water, fuel, fish, and wildlife.

    Moral Response: We care about future generations and have a responsibility to care for the environment and not leave a polluted earth for our children and grandchildren.

  • Defect: Pushing for massive expansion of the consumer economy. Today’s economy is involved in a relentless drive to sell a never-ending array of consumer goods.

    Moral Response: Most denominations preach against excessive materialism. (“Lay not up for yourselves treasures on earth where moss and rust doth corrupt and where thieves break through and steal.” Matthew 6:19)

  • Mt-Top-Removal-James-Holloway.jpg
    Faith-based communities can become powerful allies in the fight to stop growth at all costs, including the once forested Kentucky mountains. Photo Credit: James Holloway

    Defect: Offering economic justifications for extraordinary environmental destruction, such as mountain-top coal removal mining.

    Moral Response: Such practices are an attack on the earth and cause serious harm to local residents–their health, their water supply, and their homes, leaving the once biologically forested mountains of West Virginia with a Martian landscape.

  • Defect: Permitting enormous pollution externalities to be shoved off on fellow competitors and on the public. Today’s economy tolerates cheater economics in which products do not reflect the real ecological costs of their manufacture and usage.

    Moral Response: We are charged with loving our neighbors, not poisoning them. Prices of consumer goods should reflect the damages being done to obtain the raw materials and energy used in their production and in their usage or consumption.

  • Defect: Counting population growth as an asset when in most places it is a liability that pushes localities as well as states to exceed the carrying capacity of their environment. None of the great challenges to the health of the earth’s life-support systems are made easier by having more people. World population today exceeds 7 billion and is headed to between 9 and 11 billion by 2050. The tax code in many places encourages more population growth and the global economy depends on a growing supply of cheap labor.

    Moral Response: While there is a large rift among religious denominations over the question of abortion, the population question is directly addressed in Chapter 1 of Genesis. The blessing “be fruitful and multiply” is first given to every kind of animal, including crawling things, then to humans. Thus, humans must take their blessing in the context of the previous blessings by God and live so that the earth is flourishing with many kinds of life.

In summary, those who seek a true cost, steady state economy should work with faith-based communities to discuss how the crucial linkage between serious problems like climate disruption and new economic policies to achieve a sustainable economy fit into their work.

By raising objections to cheater economics, to pollution externalities, and to phony benefit-cost analyses used to justify grotesque environmental practices (such as tar sands oil and mountain top removal), faith-based communities will make a difference. These coummunities can speak with moral authority about caring for future generations, about caring for God’s creation, and about loving one’s neighbors–not polluting them.

ABOUT THE AUTHOR

Brent Blackwelder recently retired as the president of Friends of the Earth where he was renowned for speaking truth to power. He testified in front of the U.S. Congress on pressing environmental issues more than 100 times. He also was a founder of American Rivers, a top river-saving organization. As a leader in the effort to safeguard rivers, Brent helped expand the National Wild and Scenic Rivers System from eight rivers in 1973 to over 250 today. On the economics front, he initiated campaigns to reform the World Bank and succeeded in getting Congress to enact a series of significant reforms directing the Bank to pay more attention to the environment.

ABOUT CASSE

The Center for the Advancement of the Steady State Economy (CASSE) is a research group on economic sustainability located in Arlington, Virginia, USA. The mission of CASSE is "to advance the steady state economy, with stabilized population and consumption, as a policy goal with widespread public support."


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