A different economic model: 2 – a constant, stable,‘steady state’ economy

George Monbiot suggests that it is time for a government commission on post-growth economics which would invite contributions from those already investigating the possibility of moving towards a steady state economy: one that seeks distribution rather than blind expansion; that does not demand infinite growth on a finite planet.

Localise West Midlands is dedicated to advocating and building such an economy

Such a commission, Monbiot points out, should ask the questions that never get asked:

  • Why are we wrecking the natural world and public services to generate growth when that growth is not delivering contentment, security or even, for most of us, greater prosperity?
  • Why have we enthroned growth, regardless of its utility, above all over outcomes?
  • Why, despite failures so great and so frequent, have we not changed the model?

The Constant EconomyAs MP Zac Goldsmith says, introducing his excellent book, the rainbow-titled Constant Economy: how to create a stable society:

“Since the industrial revolution, our economies have grown at the expense of the natural world. But as pressure mounts on the earth’s finite resources, we can no longer pretend that business-as-usual is a realistic option.

“One way or another we will have to change. The longer we delay, the more our societies will be at the mercy of events and the harsher the eventual adjustments.

“There is an alternative: a constant economy. The constant economy operates at the human scale and, above all, it recognises nature’s limits. In a constant economy:

  • resources are valued not wasted,
  • where food is grown sustainably,
  • goods are built to last,
  • energy security is based on the use of renewable sources,
  • and strong communities are valued as a country’s most effective hedge against social, economic and environmental instability”.

George Monbiot points out that, when the next crash comes, these questions will be inescapable.

See also: A different economic model: 1 – money creation, ‘a long-neglected question’

Energy security, using devices manufactured in this country

prof john a mathews 2Professor John A. Mathews’ areas of expertise include semiconductors, flat panel displays and new energy industries, solar photovoltaics and LEDs.

He wrote in the Financial Times:

“A quite different version of “energy security” involves reliance on the power generated by renewable devices – wind turbines, solar cells – that are manufactured in the country itself.

“What you make is yours, forever.

“Provided a country has abundant resources of renewable energy – wind, water, sunshine –  making itself independent in power needs by manufacturing its energy systems is the best guarantee of long-term (as well as medium-term) security.

“By contrast, continuing dependence on fossil fuels (even alternatives such as shale oil or gas) locks a country in to eventual diminishing returns.

“Adopting the alternative “security through manufacturing” approach has the convenient aspect that it would help to revive manufacturing centres . . .

“And it has the added convenient feature that it reduces the country’s carbon emissions”.

Professor Mathews currently holds the Eni Chair of Competitive Dynamics and Global Strategy at LUISS Guido Carli University, in Rome, and Chair of Strategy, Macquarie Graduate School of Management, Macquarie University, in Sydney.

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