Has the Economy Outgrown the Planet?
Spoiler alert ... Yes.
This past week, my friends over at the Degrowth Institute published a brief titled Has the Economy Outgrown the Planet?
The brief introduces degrowth and is aimed at folks working in environmental and social advocacy. It’s a great intro to degrowth and easily digestible, unlike a 50+ page report people from degrowth thinktanks expect you to read.
The Degrowth Institute is based in Chicago and will be hosting Deschool (Degrowth School) in late July, if you are interested in participating.
I will be there.
Matt, it's great that you will be doing a presentation on Post-Growth Finance at this event. While you are there you might like to pose a question that most Degrowth academics and activists don’t directly confront (and not fully covered in your excellent 50 page report).
Background: Degrowth requires many sectors of the economy to shrink, e.g. tourism, fashion, retailing, finance, advertising, industrial agriculture, manufacturing of non-essentials, much of the car industry, etc. The shrinking of those sectors will cause the loss of many jobs and the loss of wealth of ordinary people who have investments in those sectors via their superannuation, shares, etc. The standard Degrowth response includes universal basic services, a UBI, etc.
Assumption: Given the failure of international agreements such as those resulting from the COP meetings (too little too late) there is no chance of a global agreement to reduce those sectors. Therefore, one or a small group of countries must be first movers.
Question: How can those sectors be reduced quickly enough to (possibly) avoid irreversible climate tipping points, given that such reductions will cause the stock market to crash, currency to devalue, capital flight from that country, and probably a run on the banks?
I have my own answer but I'd rather hear other ideas because my suggestion is risky and unlikely (but it’s the only way I can see enough Degrowth happening quickly enough).
You need to do this in Canada!
I will no longer travel to the US.