Enough Is Enough. Why We Need. How We Can Get There. Wes Ernsberger
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1 Enough Is Enough Why We Need a Steady State Economy and How We Can Get There Wes Ernsberger wesernsberger@gmail.com
2 Some Context Strengthen our local economy.. Deep Economy by Bill McKibben Transition Towns movement Permaculture movement Fix the national / global economy.. Agenda for a New Economy by David Korten Beyond Growth by Herman Daly
3 The Center for the Advancement of the Steady State Economy Take a Position!
4 The Economy: Classic View $ Waste products $
5 The Economy: In Reality $$$ $ Resources Resources Waste Waste products products $ $$$ Waste Waste Waste 5
6 Global Ecological Overshoot The World Global ecological footprint is greater than available biocapacity! Number of Earths We are in a state of overshoot Resources are being used faster than they can be regenerated Wastes are being produced faster than they can be assimilated Ecological Footprint Biocapacity Source: Global Footprint Network 6
7 The Alternatives Carrying Capacity Steady State Economy Growth and Collapse Time 7
8 What is a Steady State Economy? Stable population Stable per capita consumption Resource and waste flows are within ecological limits 8
9 steadystate.org/enough-is-enough/
10 Enough is Enough Report: Areas Where Change is Required 1. Limit Resource Use and Waste Production 2. Stabilize Population 3. Limit Inequality 4. Reform the Monetary System 5. Change the Way We Measure Progress 6. Secure Full Employment 7. Rethink Business and Production 8. Improve Global Cooperation 9. Change Consumer Behavior 10. Engage Politicians and the Media
11 Enough is Enough Report: Areas Where Change is Required 1. Limit Resource Use and Waste Production 2. Stabilize Population 3. Limit Inequality 4. Reform the Monetary System 5. Change the Way We Measure Progress 6. Secure Full Employment 7. Rethink Business and Production 8. Improve Global Cooperation 9. Change Consumer Behavior 10. Engage Politicians and the Media
12 5. Change the Way We Measure Progress Currently: Gross Domestic Product (GDP) 12
13 5. Change the Way We Measure Progress Currently: Gross Domestic Product (GDP) The welfare of a nation can scarcely be inferred from a measurement of national income. -- Simon Kuznets (1934) 13
14 5. Change the Way We Measure Progress Currently: Gross Domestic Product (GDP) The welfare of a nation can scarcely be inferred from a measurement of national income. -- Simon Kuznets (1934).. it measures everything, in short, except that which makes life worthwhile. -- Robert Kennedy (1968) 14
15 GDP and Happiness Happiness Index Source: Inglehart and Klingemann(2000) Income per Person ($)
16 Happiness and GDP United States Percentage ve ery happy Real income per person Percentage very happy Source: Layard (2005) 16
17 Example Alternatives to GDP Genuine Progress Indicator Happy Planet Index Bhutan s Gross National Happiness
18 Genuine Progress Indicator Starts with GDP Adds uncounted positive factors Example: volunteer labor Subtracts counted negative factors Example: cost of pollution
19 Happy Planet Index Reported Life Satisfaction x Longevity Environmental Footprint Great Video: Google Nic Marks Happy Planet Index
20 Buhtan sgross National Happiness Combines 72 indicators grouped under 9 domains: 1.Time use 2. Living standards 3. Good governance 4. Psychological wellbeing 5. Community vitality 6. Culture 7. Health 8. Education 9. Ecology
21 Bhutan s Gross National Happiness
22 Countries Switching from GDP to Well-Being Bhutan France UK
23 Maryland s Genuine Progress Indicator Adopted Feb 2010 Part of their Smart, Green, and Growing initiative See Yes! Magazine article at etmsolar.com/gsuu/gs/enough
24 5. Change the Way We Measure Progress Currently: GDP In a Steady State Economy: Replace GDP with an index of well-being Track resource use (to keep within ecological limits) 24
25 1. Limit Resource Use and Waste Production Currently: Few controls In a Steady State Economy: Impose strict resource and emission caps Caps set based on ecological criteria Trade between industries to allow efficient allocation 25
26 2. Stabilize Population In a Steady State Economy: births + immigration = deaths + emigration In developed countries: Birth rates already near or below replacement level Reduce the number of immigrants In poorer countries: Provide education and access to birth control 26
27 3. Limit Inequality In a Steady State Economy: Growing GDP is no longer the goal. New goal: maximize well-being Limiting inequality helps make that happen. 27
28 Richard Wilkinson and Kate Pickett The Spirit Level
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35 Why? Increased inequality results in.. increased social competitiveness and anxiety results in.. increased health and behavior problems. From: The Spirit Level, Chapter 3
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37 6. Secure Full Employment Advances in technology result in increased productivity. How does the economy respond? Currently: Either produce/consume more stuff Or layoffs 37
38 6. Secure Full Employment Advances in technology result in increased productivity. How does the economy respond? In a Steady State Economy: Amount of stuff produced stays the same People work fewer hours at same pay More time for other activities 38
39 Enough is Enough Report: Areas Where Change is Required 1. Limit Resource Use and Waste Production 2. Stabilize Population 3. Limit Inequality 4. Reform the Monetary System 5. Change the Way We Measure Progress 6. Secure Full Employment 7. Rethink Business and Production 8. Improve Global Cooperation 9. Change Consumer Behavior 10. Engage Politicians and the Media
40 Characteristics of a Steady State Economy Sustainable Scale Just Distribution Just Limits Distribution to Inequality Efficient Allocation Efficient Allocation High Quality of Life High Quality of Life Use Energy markets and material Health, only Limits where flows time, to within appropriate inequality prosperity, ecological and limits community 40
41 What Can WeDo? A few thoughts.. Learn more: Sign their position statement Talk to your friends Advocate adoption of a well-being index City, county, state, federal Your ideas?
42 Conclusions We must move to a steady state economy. We live on one, finite planet. The world economy already exceeds carrying capacity In developed countries, economic growth is no longer improving people s lives. First step: Change how we measure progress from GDP to a well-being index A steady state economy can be a far better place to live. This presentation plus links to related resources: 42
43 Acknowledgements Many of the slides are adapted from the following sources: steadystate.org/discover/video-audio-andpresentations/#slideshows Better Not Bigger The Need for a Steady State Economy GDP and Quality of Life
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