Changing the focus from economic growth
One of the main goals of nations is economic growth, due to the common belief that growth can solve the problems of our modern societies (e.g., poverty, overpopulation, environmental degradation) [5,6,7]. Economic growth entails an increase in the production and consumption of goods and services, which is indicated by an increase in the gross domestic product (GDP) [1,6].
During the last 200 years, the economy has been growing [7]. But the economy does not exist in a void. Rather, it is a subsystem that exists inside the biosphere [7]. For this reason, and as mentioned by Daly, the economy cannot grow indefinitely due to the ecological limits of the Earth [2,9]. Moreover, research has shown that in some countries with a high GDP, the subjective well-being of the citizens does not increase (e.g. happiness) [2]. Other authors have added that the ageing population and high levels of debt will make economic growth impossible [2]. So, there is an urgent need to change the focus from economic growth towards a more sustainable option.
Degrowth
Degrowth is another concept that has attracted the attention of many scholars during the past years. This term has been defined as decreasing economic production and consumption, which causes a decrease in GDP [2,6]. In consequence, degrowth can increase human well-being and bring material and energy use within ecological limits [2].
However, degrowth is not the solution per se for every nation or region. Only in cases where the size of the economy is bigger than the carrying capacity of the ecosystems, degrowth may be needed to achieve a steady-state economy [1,2]. On the other hand, in poor areas where people are not meeting their basic needs (e.g., food, housing, sanitation, education, healthcare), economic growth or redistribution of resources may be necessary [1]. The concept of steady-state economy and degrowth may be seen as complementary, and as alternatives to economic growth [2,6,8].
What might a steady-state economy look like?
The following points describe some of the policy measures that should be taken to implement a steady-state economy worldwide [7,9]:
- Fair distribution of wealth. For example, to solve poverty and promote equity a minimum and maximum income can be set.
- Extend the useful life of products. Products that can be used for more years can entail a reduction in the use of energy and natural resources.
- Redirect financial investment towards replacement and qualitative improvement of products and services.
- Tax based on energy and natural resources use, instead of earned income.
- Regulate international trade to avoid unsustainable practices overseas.
- Create employment in sustainable areas, such as green energies, maintenance and repair, and wildlife conservation.
Tim Jackson: An economic reality check – YouTube
‘It’s a story about us, people, being persuaded to spend money we don’t have on things we don’t need to create impressions that won’t last on people we don’t care about.’
Tim Jackson, ecological economist and professor from University of Surrey
