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Changing the economy:inner versus outer growth

 
 
sarek
 
Reply Wed 19 Nov, 2008 07:17 am
Anyone who has eyes to see can observe that humanity has gotten itself into a serious structural crisis.
I am not speaking of the current financial crisis but of a permanent crisis in the real economy with far greater scope.

Our economic system is simply based on growth. Before, that has never been a problem. Humanity has historically been rather insignificant compared to the mondial ecosystem we live in. There was always room to spare and more oil to find.

But that situation has already changed and is still changing rapidly. We have created technologies that can process our natural resources at appalling rates. We are now clearly beginning to see that those resources are structurally limited.

The combination of traditional growth based economics and accelerating technological capabilities will inevitably lead to cannibalisation of our own planet. It is a simple mathematical outcome. If we go on like we have done before we will not last this century.

The root problem is that human beings are preprogrammed to seek improvement relative to their competitors. Those competitors mainly being other humans, such preprogramming will express itself in a growth based economy. We need to take such predispositions into account when envisioning a new economic structure.

Clearly, such a new economy must also be based on the fulfillment of those evolutionarily preprogrammed needs in order to be compatible with basic human nature.

So, why not restructure the economy for another kind of growth. But this time growth must be directed inward. I am envisioning a concept of growth that is expressed not as increased production but as increased efficiency. Creating the same with less.

The key to establishing such an economic system is to transform the indicators of economic success so that greater efficiency is rewarded while greater production is at best mildly discouraged.

A car manufacturers yearly report should reflect in jubilant terms how the company has managed to reduce consumption of raw materials, energy and even labour instead of advertising how many more cars have left the factory.
It is all about building the economic controls around 'less is more'

We need to identify our basic primary resources(energy, labour) and insure that using them in the production process becomes sufficiently expensive. As a last resource we may even need to establish maximum production levels of certain items.

If a company introduces a new system of automation and fires a thousand employees, the current economic system considers that a bad thing because those workers become unemployed. All kinds of social problem ensue.
Under the new economy such a development would actually be profitable. You can reallocate skilled labour to another task. You may also be able to save on commuting time and costs. The bottom line is simply that using fewer resources and manhours on reaching the same production does constitute an increase in efficiency.
The central problem is how to change society so that it no longer frowns on (temporary)unemployment but recognizes it as the opportunity it can mean.

Products should be designed for longevity.
Why shouln't a car be good for fifteen or more years of heavy duty use? Why replace an entire computer every three years if you can just exchange the processor?
Why not manufacture entire apartments in a factory just like you build cars?

I am not saying restructuring the economy in such a way will be easy. But if mankind is to survive I believe it to be essential.
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Type: Discussion • Score: 1 • Views: 1,017 • Replies: 11
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xris
 
  1  
Reply Wed 19 Nov, 2008 07:25 am
@sarek,
Growth is the killer its killing us and the planet...its a stupid mind set the goverments can not escape from ..democracy has no answer to the important changes we need to make we need totalitarian rule by common necessity..
Mr Fight the Power
 
  1  
Reply Wed 19 Nov, 2008 08:22 am
@xris,
Malthus, I don't particularly share your concern. Efficiency is rewarded.
xris
 
  1  
Reply Wed 19 Nov, 2008 08:31 am
@Mr Fight the Power,
but growth is encouraged in every field ..
0 Replies
 
Theaetetus
 
  1  
Reply Wed 19 Nov, 2008 08:31 am
@xris,
xris wrote:
Growth is the killer its killing us and the planet...its a stupid mind set the goverments can not escape from ..democracy has no answer to the important changes we need to make we need totalitarian rule by common necessity..


Growth is not the problem it is unwise growth that is the issue. Totalitarian rule will make things worse because there is no way to question the decisions of the decision makers.
xris
 
  1  
Reply Wed 19 Nov, 2008 08:40 am
@Theaetetus,
Theaetetus wrote:
Growth is not the problem it is unwise growth that is the issue. Totalitarian rule will make things worse because there is no way to question the decisions of the decision makers.
growth is the problem sorry but it is..The world can not survive increase growth year after year and democratic goverments need to encourage growth to stay in power..Individual needs must be placed after the necessity to stop us destroying the planet..2% increase in growth world wide increase global warming by 1% and requires sixty more major nuclear power stations...
0 Replies
 
sarek
 
  1  
Reply Wed 19 Nov, 2008 03:44 pm
@sarek,
Malthus, if you will. But can you deny the validity? What other way out is there? I agree Malthus was proved wrong in his time. But was his basic thinking incorrect? Resource usage will still increase along mathematical lines.

The kind of growth we are seeing now is by definition the unwise kind. That is because of the historically unique combination between asymptotically accelerating technology and basic human biological programming. It has nothing to do with any system of government.
Any limited supply of resources will be consumed within a historically short period. Oil is just the primary example.

To keep things pure I am not, and never will be advocating any kind of totalitarian or worldwide government. IMNSHO that is the very worst thing that could ever happen to us. If you want to see oppression such as you have never seen before, by all means go that route. But count me out.

Even today the worldwide system of checks, regulations and balances has evolved far beyond the conventional systems of government.

It is highly conceivable a mixed worldwide regulatory system will eventually evolve. Organizations like the G20, OPEC or OAU or more likely their future equivalents will all play a role in this, both in cooperation and maybe also in competition with each other.
A genuine problem is assuring that democratic control over these institutions is maintained.
xris
 
  1  
Reply Wed 19 Nov, 2008 03:50 pm
@sarek,
you think democracy can solve this greed...its self indulgent self preserving party politics and if you think we have a voice in its direction then your fooling yourself...Commerce is the king and we feed at its trough..
0 Replies
 
BrightNoon
 
  1  
Reply Mon 15 Dec, 2008 01:54 am
@sarek,
The current order is not sustainable, but it cannot be changed in an orderly manner except via totalitarianism; if the choice be between that and malthusian catastrophe, I choose the latter and hope for luck.
xris
 
  1  
Reply Mon 15 Dec, 2008 04:05 am
@BrightNoon,
BrightNoon wrote:
The current order is not sustainable, but it cannot be changed in an orderly manner except via totalitarianism; if the choice be between that and malthusian catastrophe, I choose the latter and hope for luck.
Ide vote for that..:sarcastic:
BrightNoon
 
  1  
Reply Mon 15 Dec, 2008 04:31 pm
@xris,
You'd rather live in a fascist state than take your chances in anarchy? To each his own...
xris
 
  1  
Reply Tue 16 Dec, 2008 05:17 am
@BrightNoon,
BrightNoon wrote:
You'd rather live in a fascist state than take your chances in anarchy? To each his own...
Twos a joke facists state..vote...:sarcastic:
0 Replies
 
 

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