William Rees - The Dangerous Disconnect Between Economics and Ecology
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The world economy is depleting the earth's natural resources, and economists cling to models that make no reference whatsoever to the biophysical basis that underpins the economy. That's why ecological economics is needed, says William Rees in this INET interview. http://ineteconomics.org/video/interview/william-rees-dangerous-disconnect-between-economics-and-ecology
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Here is how we do it. Introduce a new Economic Indicator that is not the GDP but is a better indicator of true value. It could be called the Gross Value Product. (GVP) It would be calculated like the GDP but dollar transactions that do not produce anything of true value would not be added in. So the GVP would not include the dollars that flow as a result of Fashion, Pro Sports, Motor Racing, Gambling, Recreational Drugs etc. (Wants)
Dollars that flow for purposes of food, shelter, Health Care, Education, Energy, Transportation, etc. (Needs) will be added into the GVP. This could be done in greater detail by setting up a "needs-wants spectrum". According to this classification, things like Art, Entertainment, Recreation could be added in at some percentage. ie dollars that flow for recreation purposes could be added into the GVP at 50%. (If you think this looks too complicated, just look at our present economic model and method of Taxation.)
Also, there would be amounts that would be subtracted from the GVP. These would be dollars that circulate because of Crime, Disasters, Car Accidents etc.
Also, there are other changes that need to be made, to transform the Economy. Each Sector of the Economy needs to be reexamined. Some Sectors are working well now so don't need changing. Others like "The RealEstate Sector" are not working and need a major renovation.
Over time, the new GVP would replace the GDP as the major economic indicator.
I have a name for my new system. It is called "Henry Ford Capitalism." (HFC)
I call it this because we need to eliminate certain things in our current system that are anti-Capitalism and destructive. These are things like Lobbying, selling short, subsidies on Fossil Fuels, etc. Also, the name, HFC, is less scary to many people. In fact, our present system is only ~50% Capitalism and the new system could also be ~ 50% Capitalism. It is my idea that we need some of the negative feedback loops that are found in the basic structure of our present model. These negative feedback loops make the system somewhat self-regulating and that is a good thing.
So... What is the alternative? Huh? How else can we achieve the necessary changes? . . .. .
Dictatorship? Yes, this would work but people don't like Dictatorships.
See how "Mobilization of the Economy for War" in ~1939 was a Dictatorship, and it worked to achieve the goal.
After all, this is the degree of change that we need. Is it not?
In a Dictatorship, the Government could stop the manufacture of Fossil Fuel powered vehicles. For example.
The Government could order that Coal Power Plants be shut down, as is happening in Germany, today.
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All of these things are possible because the Economy is just something that we fabricated out of thin air.
We can make up a new and better one. -
Rees is talking about what Marx called the "metabolic rift" two centuries ago.
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The flippant chatter following the recent Paris "Talks" in every media and talk show discussion on climate change failed to recognize an obvious disconnect: All the self-important and highly polluting nations leading the discussions were the very same governments burning up millions of gallons of fuel everyday pursuing vicious military invasions, igniting t multiple human tragedies while spreading toxins across the oceans and globe. They can't ever be taken seriously while sponsoring, training, and arming terrorist activities that increase carbon emissions far beyond peacetime uses.
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The fusion power is already on its way and it could definitely improve our life standard, but if the policies of today's economics don't change, then we as humans are getting in for a hell of a spiral ride.
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Exactly! :)
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great conversation, certainly much needed in today's world.
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Thank you Bill.
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Trickle down economics is a myth perpetuated to convince the lower and middle class that tax breaking to the rich will create more jobs for them. It is a demonstrated failure. The additional money the rich get is used to outsource and automate jobs instead.
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It should be mentioned that along with all of the suggestions made by Dr. Rees, considerable efforts should be directed at lowering populations. William Ryerson is doing such work, although a recognition of the necessity of community-directed birthrate reduction programs is very rare, and Dr. Ryerson is reduced to doing his best to implement birth control education programs for young women in Africa. Dr. Rees is somewhat more hopeful than myself that international cooperation will occur.
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The decoupling of economic growth from ecological resources will only end with UP TOP regulation & taxation, instead of trickle down economics, coupled with over regulation of the 99%. Believe it or not, most of the disenfranchised already understand this now, without attending Ivory tower universities we can't afford.
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I still have my ecology sticker from the 1970's - too late. Nice ideas - this will be a world war instead.
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