
The growth economy is failing and we have to attempt a steady-state economy. The steady state answer is that the rich should reduce their throughput growth to free up resources and ecological space for use by the poor, while focusing their domestic efforts on development, technical and social improvements, that can be freely shared with poor countries.
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Ecological economists have offered empirical evidence that growth is already uneconomic in high-consumption countries. Since neoclassical economists are unable to demonstrate that growth, either in throughput or GDP, is currently making us better off rather than worse off, it is blind arrogance on their part to continue preaching aggregate growth as the solution to our problems. Yes, most of our problems (poverty, unemployment, environmental degradation) would be easier to solve if we were richer – that is not the issue. The issue is: Does growth in GDP any longer really make us richer? Or is it now making us poorer?
For poor countries GDP growth still increases welfare, at least if reasonably distributed. The question is, what is the best thing for rich countries to do to help poor countries? The World Bank’s answer is that the rich should continue to grow as rapidly as possible to provide markets for the poor and to accumulate capital to invest in poor countries. The steady state answer is that the rich should reduce their throughput growth to free up resources and ecological space for use by the poor, while focusing their domestic efforts on development, technical and social improvements, that can be freely shared with poor countries.
_This article is adapted from Towards a Steady-State Economy, a paper Herman Daly wrote for the UK Sustainable Development Commission in 2008. The complete text can be found at www.theoildrum.com.
http://www.adbusters.org/magazine/81/steady_state_economy.html



