1 presentation to david suzuki foundation frank rotering december 1, 2009

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Presentation toPresentation to

David Suzuki FoundationDavid Suzuki Foundation

Frank RoteringFrank Rotering December 1, 2009 December 1, 2009

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Stein Valley Stein Valley Festival, 1989Festival, 1989

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Stein Valley Festival, 1989Stein Valley Festival, 1989

"Economists are stupid - they focus on growth and free trade but completely ignore natural limits."

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Simon Fraser UniversitySimon Fraser University

Computer classComputer class

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Two main questions:•Is the economy at the root of the environmental crisis?•Are economists and their discipline "stupid"?

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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

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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

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So:

YES

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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.

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So, in Suzuki's sense:

YES

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Steve Easton - int'l tradeSteve Easton - int'l trade

"Where's your "Where's your model?"model?"

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pp11DD11 + p + p22DD22 = p = p11xx11 + p + p22xx22

XX22

XX11

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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

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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

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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

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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

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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

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ENL CostENL Cost

Labor CostLabor Cost

Natural CostNatural Cost

Objective effects of production Objective effects of production

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MarginalMarginalHealthHealth

Q/tQ/t00

Optimum Output QuantityOptimum Output Quantity

ValueValue

CostCost

Optimum Optimum

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EnvironmentalEnvironmentalBudgetsBudgets

Absorption RateAbsorption Rate

No Species DeclineNo Species Decline

Regeneration RateRegeneration Rate

Renewable Resources:Renewable Resources:Waste Flows:Waste Flows:

Habitat Destruction:Habitat Destruction:

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MarginalMarginalHealthHealth

Q/tQ/t00

Target Output QuantityTarget Output Quantity

ValueValue

CostCost

LimitLimit= 10,000= 10,000

TARGET:TARGET:Optimum QuantityOptimum Quantity

Ecological Ecological LimitLimit

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MarginalMarginalHealthHealth

Q/tQ/t00

Target Output QuantityTarget Output Quantity

ValueValue

CostCost

LimitLimit= 6,000= 6,000

TARGET:TARGET:Ecological Ecological

LimitLimit

Optimum Optimum QuantityQuantity

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needsandlimits.org

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End Constraints Means

Current Economic Thought

FUNCTIONALFRAMEWORK

GUIDING FRAMEWORK

NEW ECONOMIC THEORY

ENL

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YouTube video:YouTube video:

"Revolutionizing Economic "Revolutionizing Economic Thought"Thought"

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Organic ChangeOrganic Change

Economy

FUNCTIONALFRAMEWORK

GUIDING FRAMEWORK

Specifyobjectives

1

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Organic ChangeOrganic Change

Economy

FUNCTIONALFRAMEWORK

GUIDING FRAMEWORK

Specifyobjectives

1Achieveobjectives

2

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Organic ChangeOrganic Change

FUNCTIONALFRAMEWORK

GUIDING FRAMEWORK

Specifyobjectives

1Achieveobjectives

2Evaluateresults

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Economy

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Organic ChangeOrganic Change

FUNCTIONALFRAMEWORK

GUIDING FRAMEWORK

Specifyobjectives

1Achieveobjectives

2Evaluateresults

3

Economy

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Organic ChangeOrganic Change

FUNCTIONALFRAMEWORK

GUIDING FRAMEWORK

Specifyobjectives

1

Economy

Achieveobjectives

2Evaluateresults

3

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Organic ChangeOrganic Change

FUNCTIONALFRAMEWORK

GUIDING FRAMEWORK

Specifyobjectives

1Achieveobjectives

2Evaluateresults

3

Economy

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Organic ChangeOrganic Change

FUNCTIONALFRAMEWORK

GUIDING FRAMEWORK

Specifyobjectives

1Achieveobjectives

2Evaluateresults

3

Economy

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Organic ChangeOrganic Change

FUNCTIONALFRAMEWORK

GUIDING FRAMEWORK

Specifyobjectives

1Achieveobjectives

2Evaluateresults

3

Economy

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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

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Kirkpatrick SaleKirkpatrick Sale

19931993

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"... 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:

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"... 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)

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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)

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Herman Daly

Bill Rees

EcologicalEconomics:

DEEP DENIAL

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YouTube video:YouTube video:

"A Critique of "A Critique of Ecological Economics"Ecological Economics"

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"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?

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Standard EnvironmentalismStandard Environmentalism

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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

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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

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needsandlimits.orgneedsandlimits.org

frank_rotering@yahoo.comfrank_rotering@yahoo.com

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Capitalism must grow

Growth is unsustainable

Capitalism must go