Wednesday, January 27, 2010

Economic growth - not for all

We need to stop using (infinite) economic growth as the foundation of our society, both locally and globally. There's this myth that (infinite) economic growth will benefit everyone, that it will increase the living standard for all, make it possible for every single person on Planet Earth to enjoy such things as flat-screen TVs, jacuzzis, iPods, fancy vacations to exotic locations and the latest blockbuster in stunning 3D. It won't.

Since the economy is tied to natural resources, economic growth will peak once all natural resources are claimed. Sure, you can refine those resources, adding value to them by invested labour but eventually we are forced to start artificially create scarcity and demand to drive up the value.

In fact the current economic system running on supply-and-demand, presupposes scarcity. Without scarcity, value would drop. There is something paradoxical here. The system works on scarcity, yet is thought to generate abundance. It goes without saying that this cannot work.

The next step is to shift the distribution between the participants in the economic system, effectively allowing economic growth for fewer and fewer people, until theoretically one peron owns everything - including every other person. Here I think we've got the crux of the matter. Our economic system is fundamentally a system of exploitation, control and dominance of nature and everything in it, including human beings.

Suggested further reading: BBC News - Economic growth 'cannot continue', and the full report Growth isn't Possible

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