Monday, October 26, 2009

Blackboard Reading: Economics In A Full World

Economics In A Full World

  • a. growth is thought to be the solution to everything
  • b. wealth “will” trickle down
  • c. don’t try to “redistribute” wealth
  • d. lower interest rates > new jobs
  • e. rely on the Kuznets curve, pollution will decrease


Finite Biosphere

  • a. the economy is a subsystem of a finite biosphere
  • b. natural capital: fish, minerals, fossil fuels
  • c. man made capital: roads, factories, appliances
  • d. “uneconomic growth”: negative externalities are produced faster than goods
  • e. humankind must make the transition to sustainable economy
  • f. there are inherent biophysical limits of the global ecosystem
  • g. an ecological catastrophe would sharply lower living standards
  • h. mainstream/neoclassical economists consider sustainability to be a fad
  • i. the biosphere is finite, non-growing, and a closed system
  • j. subsystems such as an the economy


Lifetime

  • a. in 67 years, the human population 3x
  • b. total energy used has increased per person
  • c. microeconomics: costs & benefits to different behaviors
  • d. an ever-growing economy is unsustainable
  • e. 1) GDP, 2) utility, 3) throughput, 4) natural capital, 5) total capital: natural + man-made capital
  • f. GDP: development + growth
  • g. well-being/satisfaction of wants isn’t measured by GDP
  • h. low-entropy resources are taken from nature & made into high-entropy wastes
  • i. man-made capital isn’t superior to natural capital
  • j. strong sustainability: more boats won’t create more fish
  • k. cap & trade: regulate the ability
  • l. free markets is incompatible with sustainability
  • m. higher taxes needed for Social Security
  • n. need more durable products
  • o. products need to be recycled @ the end of their lifespan
  • p. the wealthy spend most of their $ on houses, cars, trips
  • q. investment in a sustainable economy, for replacement & qualitative improvement, not speculation
  • r. trade has to be regulated
  • s. high incomes & luxuries should be taxed
  • t. labor intensive industry, higher employment
  • u. wealthy countries: more consumption is not increasing happiness
  • v. need to think in terms of physical resources

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