Editorial

Adbusters' Person of the Year

Herman Daly's ideas might help us claw our way out of the economic and environmental mess we're in.

Adbusters' Person of the Year

feature article
Big Idea: A Steady-State Economy
by Herman Daly.

Herman Daly isn't your average neoclassical economist, though he may well have been were it not for certain key events in his life. Like most graduate students of economics, Daly once believed that growth was the key to solving humanity's problems. But while earning his doctoral degree under one of the most respected economists of the day, Nicholas Georgescu-Roegen, Daly's confidence in growth was shaken.

Despite having made significant contributions in the field of neoclassical economics, Georgescu-Roegen, at the time of becoming Daly's mentor, had started to uncover a critical flaw in neoclassical theory: it failed to take into account how economic processes consume resources and generate wastes. Further growth meant a quicker rate of resource extraction and ever more waste. That seed of doubt that Geoegrescu-Roegen managed to plant in Daly's young mind began to grow when Daly read Silent Spring, a groundbreaking book that warned of the dangers of industrial chemicals in the food chain. After accepting a teaching position in Brazil in 1968, Daly observed firsthand how population growth was negatively impacting the local environment. His faith in growth had eroded. In its place sprung a grave concern over the apparent indifference his fellow economists displayed to the relationship between the economy and the environment.

In the 1960s and 70s, it was practically unfathomable that an economist would question the growth model. Yet once Daly realized that the economy is a growing subset of a non-growing planet, he had no choice but to sound the alarm. Humanity, he argued, had to shift to a steady-state economy, one in which demands placed on the ecosystem would remain safely in bounds. This would imply shifting economic policy from a focus on stoking growth, where the scale of physical demands on ecosystems perpetually increased, to a focus on development, meaning humanity would have to learn to make wiser use of a modest and more stable level of materials taken from the environment. Daly was able to make little headway among fellow economists, but his views were recognized as key insights by natural scientists and the emerging environmental movement.

For four decades, Daly has worked tirelessly to challenge the growth dogma that modern society has so enthusiastically imbibed. Publishing several books and more than 100 articles, Daly has even tried to effect change from within, spending six frustrating years at the World Bank, where he observed how misguided policies emerged from "an unrealistic vision of development as the generalization of Northern over-consumption." In 1994, Daly left the World Bank for the University of Maryland. To date, he has received the Right Livelihood Award as well as the Heineken Prize for Environmental Science awarded by the Royal Netherlands Academy of Arts and Sciences.

Thanks to the overwhelming evidence natural scientists have amassed demonstrating that if we want to avoid catastrophic climate change, humanity must stop pumping CO2 into the atmosphere, mainstream economists are grudgingly coming to accept the fact that there are ecological limits to our growth after all. While the majority have yet to admit that growth is a false idol, once one limit is accepted, the likelihood that there are others quickly follows. Once these limits are accepted, the whole plausibility of continued growth crumbles. Herman Daly has long been working to move the goalposts, and his brilliant economic insights are changing how the game is played. He has shown ways to tame the global economy's insane appetite for resources. In a world where we must make more modest demands on nature, he has focused on ensuring that we use those limited resources to produce real wealth that addresses real human needs. Herman Daly is a game changer and a paradigm shifter. He is illuminating the path that will lead us away from ecological and economic crises. Thus, at this critical juncture in our history, Adbusters has chosen him as Person of the Year.

Continue to read
Big Idea: A Steady-State Economy
by Herman Daly.

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January
30, 2009
05:48 am
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Similar to the Cradle-to-cradle theories, has anyone heard of The Venus Project? It's a system where the government is replaced by science, by technology that can calculate a kind of resource equilibrium for our consumption. This system also renders the entire monetary system redundant. So everything's free. No job, no savings, no debts, no dodgy motivations. I mean, think about it, what would you do if everything was free? Everything is naturally sustainable because science shows we cannot survive in the long term without it. Heaps of information about it at www.thezeitgeistmovement.com — billy
December
30, 2008
11:24 pm
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Great choice!!!!!!!!!!! Thank You!!!!!!!!! William Daniels — William Daniels
December
29, 2008
03:01 pm
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I am not sure why adbusters continues to suggest that consumerism is inherently bad for our eco-system. They need to look into "cradle to cradle" theory of design. Consumerism could ensure the future of sentient life, the products merely have to be designed more effectively. Waste must equal food. This could emerge naturally within an anarchist society. However if we give the fictional "government" more power to try and legislate ecology, we will be ensuring a totalitarian state. Keep on working people, you are the figures of change that are necessary for social progress. — Anonymous
December
28, 2008
01:22 pm
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Infinite growth isn't possible in nature, because sooner or later nature itself steps in to keep growth in check. Humans are just as subject to that natural law as any other organism on the planet is. So where did we ever get the idea that infinite economic growth was ever possible? Our current economic, environmental and social malaise is probably an early sign that Nature is getting ready to lower the hammer on us. — Anonymous
December
28, 2008
11:23 am
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This article goes along with one posted years ago where the main subject was how modern economy was wrong, wrong because its economic models where designed not taking under consideration the environment. Once this economic models were approved and "successful" they were applied to the environment, in most of the cases the environment had to be forced, manipulated, shifted, altered in order to accept this models and function. A clear example of non steady economy, of geometrical growth, which in the end will make our planet explode. There is so much the planet can take. Hope this helps. — ale
December
27, 2008
05:11 pm
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When we look into the economy, all we see is complexity. The only information we can source appears dense and complex. For someone like me who understood very little of the academic and economic world Its really difficult to understand what is going on. This induces a fear, for we fear what we do not understand. Im starting to wonder if this is the point? For deception and corruption can 'only' hide in shadows cast by this complexity. If this information where made simple and transparent, as it truly is...fear subsides to motivation. Motivated people are bad for business. There is a lot more to the economy than the misguided law of growth. Like money.. The federal bank is an institution, run by a handful of men. It is the source of 'money' for the government. The government knocks on it doors and says, " hey we want $10 million bucks from the Fed, So the Government gives the Fedral bank 10 million bucks worth of IOU's called bonds. The Fedral Bank prints for the Government 10 big ones in currency... that comes... 'OUT OF THIN AIR' since the gold standard was abolished (value of note backed by an proportion of 'gold' owned by the country) and replaced with 'Legal Tender' (value achieved by decreasing value of current dollar) or (Inflation) The crazy thing is...The Federal Bank CHARGES INTEREST!!! So If all america's money comes from the Federal bank at interest (10%) How does one pay the Federal bank back..........."Thats the point" Truth is... If all the debt in the world was payed back, there would not be a cent in left in circulation. Are these people that stupid, or are they that smart? (Reference Zietguiest), Free to watch http://www.zeitgeistmovie.com/ You might even learn that there is NO law demanding that its people file a Tax Return in America.. Because it is 'unconstitutional'. People only do it because they think they have too. Bring me the economist of the layman's. all we need is the knowledge. nothing more. — Geoff (NZ)
December
30, 2008
11:20 pm
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Second in a series. FINANCE IS NOT ECONOMICS Webster’s defines economics as “a social science concerned chiefly with description and analysis of the production, distribution and consumption of goods and services”. Contrary to popular belief, none of these take money. Nature has never demanded money for sunshine, oxygen, crude oil, water, growing plants or ANYTHING else that humans use in our economy. Nature DOES require that we observe it’s laws, and these laws don’t change. For example, plants need a certain amount of sunlight, moisture, nutrients, space, etc., and airplanes require a specific amount of lift for each ton of cargo. There is constant and recurrent upset in financial matters because it is not science and the rules are changed and violated continuously. Humans have tried slavery, feudalism, communism, socialism and capitalism. None of them have or can work long term. They are all out of sync with nature and therefore obsolete. The economy is composed ONLY of technology. The resources of the economy are materials, energy, time, labor and know-how. The purpose of the economy is to support life and do it to an ever increasing standard (standard of living). Buckminster Fuller looked at life support from seven aspects: Food, Shelter, Health care, Education, Communication, Transportation and Recreation. The only APPROPRIATE measure of the economy is “the sustainable increase in standard of living for human beings”. Instead what we currently measure is how much money we make and what the Gross Domestic Product is. Money/finance is used to manage the economy, get access to it and to make it easier to trade unequal things, for example, artwork made by one person for a car made by 1000 people. Money is also used to make money and for “winning”. It is used for control. Once most everyone is convinced “it takes money to live”, those who control the money control people, on both the societal and the interpersonal level. If the sun stopped shining or seeds stopped sprouting, the economy could not continue. Life itself would end. The reverse is not true. If money suddenly disappeared from the entire world, the economy could go on as before. There is a very revealing example that we can look at. The United States started a war with Iraq in 2003. There was no money to do it so it has never been in the budget. But this is a perfect proof that it doesn’t REALLY take money. It takes resources: Materials like guns, airplanes, tents and food; Energy like electricity, gasoline and nuclear power for ships; Time to move material and people around in order to accomplish the goal; Labor to develop all the weapons and strategies and carry them out; and Know-how to do all these things better than the enemy in order to win. Wars aren’t un-fought for lack of money, they are un-fought for lack of resources, period. The idea that we can’t “afford” (don’t have the money) to feed everyone or provide shelter or health care is simply nonsensical when looked at in this way. There are many people and organizations that are genuinely and actively working to bring about a higher standard of living for more people. These efforts will become far more successful when the clear difference between money and economics is recognized. It has been well said that “we don’t ask for too much in life, but far too little”. Some people have fear of “spreading the wealth”. The opportunity we have before us is to “unleash the wealth”. This opportunity is truly about EVERYONE benefiting. William Daniels Copyright. Please distribute this freely for non-commercial purposes. 503-314-6902 I am available to speak, write on to specific topics, etc. wdinpdx@yahoo.com see: BillionsofBillionaires.blogspot.com; BFI.org; “Critical Path” by 11/26/08 R. Buckminster Fuller — William Daniels
December
26, 2008
04:12 pm
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It is nice to believe in a solution to the words problems of consumption, and I am sure that eventualy there may be a radical change in the way we think as a concerned colective, I just do not see the people of power and means jumping on this wagon and with out the money and resorces it will be hard to stop the downward spiral of this country never mind the world. fourty years ago when I lived in southern Calif. it was foretold of the empending downfall of the words enviromental eco system the L.A. basins smog was proof, and today you still cant see the san bernidino mountains from 5 miles away. so what generation are we talking? mabey my great grandchilderns if we havent blown ourselves up by then! 82,000 people is not a large base, how many of them have this money and power to make these changes? Oh I for got the other concern 40 years ago was over population of the world. how are we doing with that and the thousands that die each day from lack of food and clean water? should their need be ignored for the sake of our greed, I guess so because it certenly hasn't changed it. enviroment or survival today which do you think people will choose? good luck — Anonymous 2
December
26, 2008
12:18 am
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Read the book "Cradle to Cradle" By William McDonough & Michael Braungart. It describes essentially the same thing. But the authors do not decry growth; instead they advocate a revolution in design and infrastructure that would enhance growth by imitating the natural systems around us. The book itself was produced in such a manner that it can be re-used (with different content) after its natural life has ended. The following is from http://www.mcdonough.com/cradle_to_cradle.htm "In addition to describing the hopeful, nature-inspired design principles that are making industry both prosperous and sustainable, the book itself is a physical symbol of the changes to come. It is printed on a synthetic 'paper,' made from plastic resins and inorganic fillers, designed to look and feel like top quality paper while also being waterproof and rugged. And the book can be easily recycled in localities with systems to collect polypropylene, like that in yogurt containers. This 'treeless' book points the way toward the day when synthetic books, like many other products, can be used, recycled, and used again without losing any material quality—in cradle to cradle cycles." Do yourself a favor: google "cradle to cradle" — Anonymous
December
19, 2008
10:46 am
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Click on BIG IDEA: A STEADY STATE ECONOMY at the end of the posting for an in depth article about Herman Daly's ideas. — Anonymous
December
19, 2008
01:40 am
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Yes, the posting is content-free. We'll have to research the man himself:
  1. Wikipedia: Herman Daly
  2. Herman Daly: Towards A Steady-State Economy
  3. Steady-State Economics
  4. Amazon Books: Herman Daly
— Michael Poremba
December
18, 2008
11:55 pm
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This article means well, but lets be honest, the title is a little miss leading. I didn't learn a thing, all the article talked about but was Herman Daly's past. In a time like today who cares about someone's past, lets hear about there ideas. Im not sure if anyone really knows what is the best thing for the world right now or has any answers. And to the response above, the corporate money machine has been getting away with continued growth because of the current government policies and institutions. A true capitalistic business cycle does not look like the business cycle the world is used to seeing. Who's responsibility is it to start a social revolution? — Anonymous
December
18, 2008
11:26 pm
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Great article. What's needed is a new and ecological definition of growth - for example, the grass dies off every year, and grows back every year, in a very stable process. If human economies were to grow as the grass grows, and then rest and fall back, only to grow again, we'd have a stable system. What the corporate money machine doesn't allow, however, is rest. It's like grass that never stops growing, never sets seed and waits for the spring. Eventually, the grass will exhaust its resources, which nature continually renews, only slowly. The old grass dies and leaves behind nutrients and root-broken soil for the new seeds, and that process has been going on for millions of years now. That's the process we need to emulate, but human greed appears to have no limits, nor does human foolishness and lack of foresight. We need a new kind of social evolution if we are to survive as a species, if you ask me. — cargocult
December
21, 2008
10:28 am
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"If human economies were to grow as the grass grows, and then rest and fall back, only to grow again, we’d have a stable system." Uhh, this is how the economy works particularly before the reforms of the Great Depression. It grows, then dies off (recession or depression) and then grows again. Depression era reforms help reduce the severity of economic downturns, but they still occur. — Anonymous
December
18, 2008
11:57 pm
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This article means well, but lets be honest, the title is a little miss leading. I didn’t learn a thing, all the article talked about was Herman Daly’s past. In a time like today who cares about someone’s past, lets hear about there ideas. Im not sure if anyone really knows what is the best thing for the world right now or has any answers. The corporate money machine has been getting away with continued growth because of the current government policies and institutions. A true capitalistic business cycle does not look like the business cycle the world is used to seeing. Who’s responsibility is it to start a social revolution? — Anonymous
December
19, 2008
08:11 am
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You did not learn anything Anonymous? You know all this? I think most people can understand the concept of a steady state economy that relies on a bound set of resources as opposed to geometrical growth. When most people are told this they get it; our society can not keep growing with a finite amount of resources. It is the responsibility of those who understand this to explain it to those who. Those who understand are responsible. — Extylerm

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