Perpetual growth in a finite world is a hopeless equation

So…back to the topic economic growth.

Economic growth (to keep the machinery spinning) as we know it today, money creation by loan and interest, also requires abundant resources of coal, oil, metals, forest, meat etc. We are put in a leg hold trap of economic growth, as even more of these resources are needed, as we must grow the economy even faster to pay off debts and interests. In economic calculations, however, the scarcity and finite of these resources have been neglected.

The diminishing inventory has been neglected in the global bookkeeping.

Critics have not only appeared in magazines such as Financial Times, but recently in the book Bankrupting nature by Anders Wijkman och Johan Rockström.

The perpetual growth in a finite world is a hopeless equation but has never bothered equity analysts.

The book not only criticizes, but also highlights changes that could be done to shift the direction of the sinking ship. These include:

  • Scrap GDP target as measurement of economic development
  • Put a more accurate price on carbon
  • Give value to the natural capital
  • Reform the financial markets
  • Circular economy, which means better reuse and recycling of materials, plus new business plans which are not built on a throwaway culture.
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Comments
One Response to “Perpetual growth in a finite world is a hopeless equation”
  1. Haitress says:

    My late father used to dscribe as a car hurtling toward a cliff edge, speeding up rather than slowing down. Thanks for this.

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