Reconsidering our economic system – a conversation with Jesse Mulligan

Photo courtesy RNZ

This week I spoke to RNZ’s Jesse Mulligan about the conversation our political leaders aren’t having. The fact that we live on a finite planet, and we cannot sustain an economy that is dependent on exponential growth (whether we label it “green” or not).

Instead, we should be talking about the alternative, and only viable future pathway: an economy centred on wellbeing, which operates within safe ecological limits. Listen to our conversation here.

Sufficiency and the pathway to a post-growth economy – recording available

In August I presented a seminar, hosted by Massey University, on what I believe to be the single most important issue we face today. That is, how to reconcile our growth-based economy and energy-intensive way of life with the polycrisis that means a liveable planet hangs in the balance.

In the talk, I argue that we simply cannot reconcile these two things – contrary to what we are led to believe by the proponents of green growth. Instead, we must let go of growth as the central goal of our economy and focus instead on what a society needs to deliver to achieve wellbeing for all, within the limits of a finite planet.

I argue that a key policy goal must be “sufficiency” – with the right vision, it is an idea that people from across the political spectrum are likely to coalesce around, unlocking the pathway to a better future.

For those who missed the seminar, here is a link to the recording (passcode: 0U3PW@sA).

The perpetual myth of perpetual growth

Leaf blowers made from recycled materials or designed to last for 10 years are still products that no one actually needs, produced using scarce energy and resources, with the sole purpose of making a profit. Newsroom

In this piece on Newsroom, I argue that just as the architects of our current economic system designed the system around perpetual growth, we can redesign the economy around delivering wellbeing to all, within planetary limits

“Every civilisation has had its irrational but reassuring myth. Previous civilisations have used their culture to sing about it and tell stories about it. Ours has used its mathematics to prove it.”

The economist and writer David Fleming was speaking about our civilisation’s myth of perpetual economic growth. And the mathematics, along with the graphs, models and analyses supporting this myth have become increasingly elaborate – inscrutable to the average person, who dares not question their truth. But now, it is not just mathematics used to assert the validity of a growth-based economy, we have added words to our arsenal of myth-making.

Continue reading on Newsroom.

Why green growth won’t save the world

I originally pitched this short opinion piece to Stuff to follow on from an earlier piece on degrowth. However, when I submitted the finished piece, the editor declined to publish, stating that ‘it was too like other pieces published lately’ and that the audience had reached saturation point on green growth and degrowth issues. (A deeply ironic statement given that almost everything published in mainstream media is supportive and unquestioning of a growth-oriented narrative.) I also felt it would be prescient given the upcoming debate on degrowth versus green growth hosted by University of Victoria.

In light of Stuff publishing this opinion piece in response to the debate, in which the author seems to be calculatedly stirring up Red Menace anxieties reminiscent of the Cold War era by selectively cherry-picking the likes of Marxist scholar Kohei Saito’s writings as if representative of degrowth scholarship, I thought I needed to get my original piece out there one way or another.

As I have argued previously, for the future of our country and our planet, we urgently need a mature and evidence-based discussion. This kind of fear-mongering (degrowth is a thinly-veiled Marxist plot and without growth we will no longer have cancer drugs or dialysis machines) and sneering academic elitism (‘degrowth is intellectually chaotic’ – not to mention one of its main advocates is an anthropologist who believes he has expertise on the economy!?) certainly fulfils mainstream media’s desperation for click-baity headlines, but does nothing to progress a reasoned, open-minded debate on arguably the most important issue of our time.

As I have argued elsewhere, every New Zealander has a right to have a say on the future of our economy and our planet – this should not be be the preserve of economists institutionalised within government or academia. So here is the piece that Stuff refused to publish.

A growing number of New Zealanders are expressing deep concern about climate change, particularly as recent extreme weather events on our shores show that this is no longer a remote issue that only affects people in other countries. It is affecting us here, now: destroying homes and livelihoods, disrupting communities, causing heartbreak and distress, and in the most tragic cases, loss of life.

But despite our growing concern, many of us remain quietly optimistic about the future – reassured by daily offerings from mainstream media filled with stories of innovators developing new technology that will instantly create clean energy, suck up carbon dioxide by the truck-load, and turn waste into energy or other useful things like car-seat covers. The message is, we can carry on living the energy- and resource-intensive lives we do now because clever scientists, innovators and tech geniuses will find a way out of this.

Green growth adds to the bright shiny promise that we can keep on living the way we do now (using resources at a rate equivalent to one and three-quarter Earths). Green growth promises that we can carry on pursuing growth (after all, if we don’t have growth, how will we pay to fix all the damage we are causing?) – all we need to do is decouple it from greenhouse gas emissions and other environmental harm. This can be done, green growth advocates tell us, by increasing productivity and efficiency, moving to a more circular economy, and reducing waste. All without making a dent in growth!

And indeed, relative and even absolute decoupling has been achieved in some countries for a period of time – though in many cases at least in part due to the ‘offshoring’ of carbon-intensive industries. (Happily, there is always a developing country ready to take a wealthier country’s dirty industry!) Nevertheless, this decoupling is not happening at anything close to the scale and speed required to keep warming within the 1.5 C limit. In fact, global emissions continue to go up year on year.

Through the Intergovernmental Panel on Climate Change (IPCC), climate scientists have delivered their final warning: we need to take bold action urgently to avert the untold environmental and human tragedy of irreversible climate breakdown. So, if the promise of green growth (or its affable cousin, ‘sustainable growth’) hasn’t been realised yet and there is no evidence that it will at the rate and scale required, isn’t it time we gave up on that idea and moved on to something that does give us – and more importantly, our children and their children – a chance?

That ‘something’ is degrowth. If that sounds a bit subversive, steady-state economy, doughnut economics or wellbeing economy are other economic models that embrace the same foundational principle: that is, an economic system that puts human wellbeing and ecological balance at the centre, not the blind pursuit of growth.

As discussed in this earlier piece published on Stuff, degrowth does not advocate for the carte blanche downscaling of the economy as a whole – rather it argues for the upscaling of the parts of the economy that will enhance human wellbeing while reducing our impact on the planet. These sectors include renewable energy generation, public transport, education and health and care sectors, sustainable food production, energy-efficient homes and repairable long-lasting goods. At the same time, it argues for the downscaling of the parts of our economy that are damaging to the environment, with little or no benefit for our collective wellbeing – such as single-use products and designed-in obsolescence, private vehicles, air travel, fast fashion and industrialised meat and dairy production.

And it is important to remember too, that while perpetual, compounding growth, as measured by GDP, has become the central goal for which all ‘modern’ economies strive, it has only been so since the 1950s. Since then we have become entranced by it glittering promises of ever-growing wealth for all; simultaneously blinded to all the damage that our ever-expanding global economy is doing to our planet’s seas, forests, freshwaters, atmosphere and – ultimately – to our descendants’ chances of being able to lead flourishing, fulfilling lives.

Isn’t it time we found another guiding star for our economy – that of wellbeing for all, including the living things we share this planet with?

Why our economy is too important to leave to the experts

Image courtesy Newsroom

In this latest piece on Newsroom, I argue that it is time we democratised economics and work towards designing an economy that works for people and the planet, not the other way around.

Imagine a day when you tune into the financial news and the announcer reports:

“Share markets have plummeted to historic lows overnight with more of the world’s mega-corporations losing investor confidence. Investors are flocking instead to promising social enterprises, citing pressure from grandchildren who would rather inherit a liveable planet than a private jet.

“In New Zealand, the Domestic Happiness Index (DHI) is continuing its strong upwards trajectory and our national contribution to the Planetary Overshoot Index (POI) is trending downwards. This mirrors global trends, and leading ecological economic commentators are bullish, predicting that we may still have a liveable planet in 2050.”

Just imagine.

This scenario may not be as far-fetched as we first think. But for it to happen, we must be part of redesigning an economy fit for the 21st Century.

Continue reading on Newsroom.

A post-growth future: the pathway away from environmental collapse

Many of us are aware by now that we are facing multiple crises: climate change being just one – warming and acidifying oceans, depleted soils, global habitat and biodiversity loss are among the others in this ‘polycrisis’. The Auckland floods have made us acutely aware of how vulnerable our cities are to the ravages of extreme weather, events predicted to become more extreme and frequent as the effects of climate change bed in.

We know that this is not going to get better any time soon. There will be more floods, droughts and other weather events that will cause destruction, economic loss and human distress on a scale that we cannot yet imagine. Even the issues that affect us day to day, such as the cost of living, have at their root the unsustainability of our current economic system.

The realisation is dawning among many of us that we cannot solve this problem following the same path that led us here – that is, an extractive growth-oriented economy dislocated from the realities of a finite planet.

Read the article on Newsroom.

Energy descent will shape our future – our choices now will determine whether it’s a liveable future

Image courtesy Newsroom

Our current economy and way of life is built on a one-off windfall of energy-dense fossil fuels. While this will not run out any time soon, all evidence points to the fact that it has peaked. But irrespective, if we have any hope of averting the worst extremes of climate breakdown and ecological collapse, we will need to reduce our energy and resource use.

This article, published in Newsroom, explains why and how – by embracing ‘degrowth’, in which we redesign the economy to put human and environmental wellbeing at its centre.

“In years gone by, you may have heard the words ‘peak oil’, often intoned with a sense of foreboding, warning us that before long oil would run out and things would never be the same.

But we don’t hear the term so much any more. Is that because the ‘doomsters’ were all wrong? Because, in fact, we have plenty of oil – and, even better, it’s never going to run out?
Unfortunately – or fortunately, if you care about what we are doing to our climate and biosphere – the answer to all those questions is ‘No. As Isaac Asimov said in his influential address ‘The future of humanity’ in 1974:

When I was 13, I started thinking …
Major premise: The Earth’s volume is finite.
Minor premise: The total volume of coal and oil on the Earth is less than the total volume of the Earth.
Conclusion: The volume of coal and oil are finite
.”

Continue reading at Newsroom.

Food security at the heart of our cost of living crisis

Here is my second recent article, published on Newsroom. It argues that if we believe the cost of living crisis is more than a momentary blip, we need policy that will strengthen NZ’s own food security and encourage bioregionalism.

New Zealanders have been finding their supermarket shop a painful experience for some time now, but in December many reached their pain threshold as food prices increased by 10.6 percent compared with 2021. Fresh produce was a whopping 24 percent more expensive – at a time of the year when it is usually plentiful and cheap. Economists reassure us this is just a momentary blip in an otherwise smoothly running economic system – prices will ‘soften’, inflation will ‘moderate’ and ‘better times will come’. These reassurances are comforting and most of us are happy to be soothed by this narrative.

But what if empty supermarket shelves and high prices are symptomatic of something much bigger? A sign of a broken system, now starting to show the tell-tale fissures of climate disruption, ecological collapse, energy descent and increased resource scarcity.

The immediate causes of surging food prices are familiar to most of us: high shipping costs, supply chain disruption, a tight labour market, disrupted weather patterns, spiralling on-farm costs such as fertiliser and diesel.

But all these factors are more connected than we might think. 

Read the rest of the article here.

The bleak realisation of failure – parenthood in the face of a climate-disrupted future

Me with Carter, aged 11 months

[Originally posted on http://www.catherineknight.nz on 18 November 2022]

I have made a bleak realisation. I am a failure. I have failed at the single most important role in my life – to safeguard the future for my children.

This has been an awful realisation to make, and it crystallised when my 14-year old son, after listening to some climate-related report on the radio said, ‘We are doomed, aren’t we, Mum?’. Unusually for him, there was not even a hint of facetiousness or irony – he was quite sincere.

At that moment, a bit of my heart shattered into pieces.

Carter and Caitlyn with Rosie the chicken. What will their future hold?

We now face the growing certainty that we will breach the 1.5 degree warming threshold that may have enabled us to avoid catastrophic and irreversible climate change. We have been warned that accelerating climate breakdown will lead to more severe and frequent climate disasters, ecological collapse, economic and social breakdown and unimaginable human suffering, including starvation, illness, displacement and death.

Or as UN Secretary-General Antonio Guterres so starkly put is a few days ago, ‘we are on a highway to climate hell’ with the option to cooperate or, enter a collective suicide pact, and perish.

A girl carries a goat through floodwaters in Bangladesh. Climate Outreach.

Even if my children do not experience the worst of this ‘climate hell’ first-hand, they will see it unfold in parts of the world, including the ‘global south’, most vulnerable to climate disruption.

Carter playing his beloved uke, Pippa by his side, under the macadamia nut tree.

As parents, we have worked to equip our children with the skills and attributes they will need when their time comes to navigate the adult world, and hopefully help make it a better place: critical thinking skills, a basic understanding of democratic process, compassion and empathy, and self-belief, especially when they hold views different from others.

And as a parent, I can only hope that this will be enough to weather the climate storm ahead.

Protecting our future: do we need to fundamentally re-evaluate the way we live our lives?

Photo: Pexels – Pixabay

[First published on www. catherineknight.nz on 16 November 2022]

Is it time we re-evaluated our obsession with perpetual growth and shifted our focus to building a society that puts human wellbeing at its centre?

The signs that we have breached multiple biophysical boundaries are becoming harder to ignore. Climate scientists say that we have missed the opportunity to limit global warming to below 1.5 degrees and predict that the world will breach this critical threshold in the next few years. Unprecedented biodiversity loss, marine and freshwater degradation are well-documented. In recent weeks, researchers reported that 75% of fish caught in New Zealand’s southern seas contained microplastics.

For a while now, we have been reassured that if we cannot reduce our emissions as much as we need to, offsetting will take care of the rest – mainly through tree-planting. But this is a fairytale – a convenient one for industry and consumers alike. A tree planted now will not be sequestering carbon at anywhere near its peak rate for many years; meanwhile we continue to pump out climate pollution. Forests are also at increasing risk of fire due to a heating climate, or can simply be harvested – wiping out their sequestration capacity. Recently, Climate Commissioner Rod Carr condemned this strategy as ‘plant and pollute’.

But we can just switch our fossil-fuel guzzling habits to other more sustainable energies, and all will be well, right? Not quite, because there is the issue of net energy. At peak abundance, it took something like one unit of energy to produce 100 units of oil, but alternative energy sources – including hydropower, solar and wind – have a significantly lower energy return. Biofuels perform especially poorly – at 3 or less units of energy for every one consumed by some assessments. So producing enough energy to maintain our energy-hungry lifestyles will require a huge expansion of the energy sector, with all its associated environmental costs.

Photo: Pexels – Jose Francisco Fernandez Saura

Meanwhile, in New Zealand, our per capita energy consumption (in oil equivalent terms) has been on a relentless rise – tripling since the 1960s – despite all our ‘energy-saving’ devices.

The reality is simple. The continued pursuit of growth is not viable; we cannot continue consuming and throwing stuff away at the rate we are. We are already in breach of multiple biophysical limits – climate being just one – and the technological salvation we have been waiting for is nowhere in sight.

To a growing number of New Zealanders, the way forward is clear. To reduce emissions and our environmental impacts, we must reduce our consumption. Some call this idea de-growth, but this has the obvious disadvantage of sounding like a deficit. In my eyes, this is the wrong way to think about it. I believe that a shift from our obsession with economic growth and its mythical ‘trickle down’ effect, to one where human and environmental wellbeing is central, would be a path to plenitude – of improved wellbeing, time with family and friends, connection with community, time to move, have fun and be in nature.

I grew up in the 1970s. Our family had no car, we walked or biked everywhere, and occasionally took a bus; most of our clothes were hand-me-downs; we grew our own vegetables; if something broke we fixed it; we spent most of our time playing creatively or outside – not with expensive devices. Did I feel deprived or hard done by? No – we had everything we needed for a good life.

I am not suggesting we turn back time and eschew technology, Amish-like, but rather think about what we really need for a good life. When looking back on their lives, few people will regret not having the latest Smart TV or getting that status-enhancing but stress-inducing promotion. Most people will regret things like not spending more time with their kids, or not prioritising their health over work.

Photo: Pexels – Creation Hill

Whatever we call it: degrowth, steady state economy, wellbeing economy or ‘new economics’, the time to fundamentally reassess what is important to us, both individually and as a nation, is now. Is it growth, mass consumption, convenience; or is it wellbeing, connection, and time to spend with those we love?