1 presentation to david suzuki foundation frank rotering december 1, 2009
DESCRIPTION
3 "Economists are stupid - they focus on growth and free trade but completely ignore natural limits."TRANSCRIPT
1
Presentation toPresentation to
David Suzuki FoundationDavid Suzuki Foundation
Frank RoteringFrank Rotering December 1, 2009 December 1, 2009
2
Stein Valley Stein Valley Festival, 1989Festival, 1989
3
Stein Valley Festival, 1989Stein Valley Festival, 1989
"Economists are stupid - they focus on growth and free trade but completely ignore natural limits."
4
Simon Fraser UniversitySimon Fraser University
Computer classComputer class
5
Two main questions:•Is the economy at the root of the environmental crisis?•Are economists and their discipline "stupid"?
6
Michael LebowitzMichael Lebowitz- economic history- economic history
Steven GlobermanSteven Globerman- microeconomics- microeconomics
Nancy OlewilerNancy Olewiler- environmental - environmental
economicseconomics
Terry HeapsTerry Heaps- regional economics - regional economics
Zane SpindlerZane Spindler- macroeconomics - macroeconomics
7
Is the economy at the root of the environmental
crisis?• Causes excessive production and consumption• Generates damaging waste flows• Overutilizes natural resources• Drives up population level
8
So:
YES
9
Are economists and their discipline "stupid"?
Ideologically and personally committed to:
• Continuous economic growth• Business and corporations• Free trade and globalization
... and overwhelmingly ignorant of natural limits.
10
So, in Suzuki's sense:
YES
11
Steve Easton - int'l tradeSteve Easton - int'l trade
"Where's your "Where's your model?"model?"
12
pp11DD11 + p + p22DD22 = p = p11xx11 + p + p22xx22
XX22
XX11
13
My overall conclusions: • The economy must be revolutionized• Standard thinkers will resist fiercely• A progressive economics does not exist
Therefore: • Develop the missing economic theory• Find progressive allies • Revolutionize the economy
14
EconomyEconomyGuidingGuidingFrameworkFramework
Transportation Option A
Environmentally Sound?
End Production
End Production
Planning Stage
Planning Stage
Environmentally Sound?
Sustainable?End Production
Implement Phase 1
Environmentally Sound?
End Production
Yes
No Unknown
Yes
Yes
Yes
No
No
No
SetObjectives
Functional Functional FrameworkFramework
AchieveObjectives
15
What to produce, in what quantities What to produce, in what quantities Rates of resource and waste flows Rates of resource and waste flows Rates of habitat destructionRates of habitat destruction Population levelPopulation level
GOAL: Sustainable well-being
OBJECTIVES:
Guiding FrameworkGuiding Framework
16
Economic of Needs and Limits Economic of Needs and Limits (ENL)(ENL)
A guiding framework to help a society set A guiding framework to help a society set economic objectives intended to achieve economic objectives intended to achieve sustainable well-being sustainable well-being
Based on the core attributes of humankind Based on the core attributes of humankind and natureand nature
17
ENL's Core LogicENL's Core Logic
HumanHumanLogicLogic
(Value, Cost)
EnvironmentalEnvironmentalLogicLogic
(Flows, Thresholds)
OptimumOptimumQuantitiesQuantities
LimitsLimits
TargetTargetOutputOutputQuantitiesQuantities
18Positive ValuePositive Value
Negative ValueNegative Value
ENL ValueENL ValueObjective effects of consumption Objective effects of consumption
19
ENL CostENL Cost
Labor CostLabor Cost
Natural CostNatural Cost
Objective effects of production Objective effects of production
20
MarginalMarginalHealthHealth
Q/tQ/t00
Optimum Output QuantityOptimum Output Quantity
ValueValue
CostCost
Optimum Optimum
21
EnvironmentalEnvironmentalBudgetsBudgets
Absorption RateAbsorption Rate
No Species DeclineNo Species Decline
Regeneration RateRegeneration Rate
Renewable Resources:Renewable Resources:Waste Flows:Waste Flows:
Habitat Destruction:Habitat Destruction:
22
MarginalMarginalHealthHealth
Q/tQ/t00
Target Output QuantityTarget Output Quantity
ValueValue
CostCost
LimitLimit= 10,000= 10,000
TARGET:TARGET:Optimum QuantityOptimum Quantity
Ecological Ecological LimitLimit
23
MarginalMarginalHealthHealth
Q/tQ/t00
Target Output QuantityTarget Output Quantity
ValueValue
CostCost
LimitLimit= 6,000= 6,000
TARGET:TARGET:Ecological Ecological
LimitLimit
Optimum Optimum QuantityQuantity
24
needsandlimits.org
25
End Constraints Means
Current Economic Thought
FUNCTIONALFRAMEWORK
GUIDING FRAMEWORK
NEW ECONOMIC THEORY
ENL
26
YouTube video:YouTube video:
"Revolutionizing Economic "Revolutionizing Economic Thought"Thought"
27
Organic ChangeOrganic Change
Economy
FUNCTIONALFRAMEWORK
GUIDING FRAMEWORK
Specifyobjectives
1
28
Organic ChangeOrganic Change
Economy
FUNCTIONALFRAMEWORK
GUIDING FRAMEWORK
Specifyobjectives
1Achieveobjectives
2
29
Organic ChangeOrganic Change
FUNCTIONALFRAMEWORK
GUIDING FRAMEWORK
Specifyobjectives
1Achieveobjectives
2Evaluateresults
3
Economy
30
Organic ChangeOrganic Change
FUNCTIONALFRAMEWORK
GUIDING FRAMEWORK
Specifyobjectives
1Achieveobjectives
2Evaluateresults
3
Economy
31
Organic ChangeOrganic Change
FUNCTIONALFRAMEWORK
GUIDING FRAMEWORK
Specifyobjectives
1
Economy
Achieveobjectives
2Evaluateresults
3
32
Organic ChangeOrganic Change
FUNCTIONALFRAMEWORK
GUIDING FRAMEWORK
Specifyobjectives
1Achieveobjectives
2Evaluateresults
3
Economy
33
Organic ChangeOrganic Change
FUNCTIONALFRAMEWORK
GUIDING FRAMEWORK
Specifyobjectives
1Achieveobjectives
2Evaluateresults
3
Economy
34
Organic ChangeOrganic Change
FUNCTIONALFRAMEWORK
GUIDING FRAMEWORK
Specifyobjectives
1Achieveobjectives
2Evaluateresults
3
Economy
35
Results of Organic ChangeResults of Organic Change A new economy that achieves sustainable A new economy that achieves sustainable
well-beingwell-being Evolved institutions Evolved institutions An unknown economic structure An unknown economic structure BUT: Capitalism has been historically BUT: Capitalism has been historically
supersededsuperseded
36
Kirkpatrick SaleKirkpatrick Sale
19931993
37
"... isolated aberrations within a functioning system, correctable by regulation and enforcement, and not as inevitable by-products of an economic system based on the imperative of growth ..."
(p. 100, underlining added)
K. Sale - Shortcomings of Environmentalism
Environmental problems seen as:
38
"... the environmental movement can never win, can never be anything but a tolerated gadfly, as long as it functions within capitalist society. It's as simple as that." K. Sale: An Illusion of Progress - June 22, 2003
(underlining added)
39
Jonathan Freedland: "... it is not just excessive consumerism but capitalism's very nature that makes it incompatible with the survival of our planet. For capitalism requires constant economic growth, yet the Earth's resources are finite.”
- The Guardian (December 5, 2007)
40
Herman Daly
Bill Rees
EcologicalEconomics:
DEEP DENIAL
41
YouTube video:YouTube video:
"A Critique of "A Critique of Ecological Economics"Ecological Economics"
42
"We work towards balancing human needs with the Earth’s ability to sustain all life." "Our goal is to find and communicate practical ways to achieve that balance.” (Foundation facts)
Website:
Can "practical ways" adequately address growth-bound capitalism and reverse overshoot?
43
44
Standard EnvironmentalismStandard Environmentalism
45
46
Standard environmentalism Standard environmentalism cancan be effective when ...be effective when ...... the solution to a problem is compatible with ... the solution to a problem is compatible with capitalist logic and social relations capitalist logic and social relations Technical fixesTechnical fixes Minor behavioral changesMinor behavioral changes Modest legal or political reformsModest legal or political reforms Production for modified wantsProduction for modified wants
47
It It cannotcannot be effective when ... be effective when ...
... the solution to a problem is incompatible ... the solution to a problem is incompatible with capitalist logic and social relationswith capitalist logic and social relations
Steady-state or contracting economySteady-state or contracting economy End of capitalist-worker relationshipEnd of capitalist-worker relationship Long-term profit erosion Long-term profit erosion Production for needs or reducedProduction for needs or reduced wants wants
49
50
Capitalism must grow
Growth is unsustainable
Capitalism must go