Presenting the Steady State Economy

Addressing the economic and ecological problems of the 21st century

The human family is about to get a little bigger. According to the United Nations, the global population will reach seven billion this Halloween – on October 31, 2011. It would be too easy to say that the coincidental alignment of this milestone with Halloween should be cause for fear. We don’t need to be afraid of a few more babies; birthrates are even decreasing in some parts of the world. What we should be deeply concerned about is the likelihood that these babies will one day aspire to Western lifestyles at a time when the planet simply can’t handle any more materially opulent aspirations.

Our way of life in the West not only puts immense pressure on the environment, it has also become a catalyst for economic volatility on a scale we’ve never seen before. We have designed our economic system to – as economist Tim Jackson describes – “spend money we don’t have on things we don’t need to create impressions that won’t last on people we don’t care about.” Unlike what most mainstream economists will tell you, that’s a recipe for disaster, not prosperity.

Take a moment to consider how the global economy is performing. Oil prices reached $113 a barrel earlier this year, contrasted with a low of $13 a barrel in 1999 (today they hover around $86). Stocks have seen unprecedented volatility; so too have the prices of grains and other essential foodstuffs. Major economies still haven’t fixed a broken financial system that inflates the prices of assets (such as mortgages) and permits a wasteful kind of “gambling” with legitimately earned money. If investment banking was working properly it would be facilitating much-needed investment in green infrastructure, not phony new financial products that consume rather than produce capital.

If this is what a “growing economy” looks like in the 21st century, we should clearly be aiming for something better! It’s time to start being rational rather than dogmatic about the word “growth.” We need to shake ourselves out of collective denial and engineer an economy that is more practical, meaningful and truly prosperous. Recent global protests such as Occupy Wall Street represent an awakening economic consciousness and a backlash against the status quo. They are revealing the cracks of a deeply broken system. But they’re not yet specific and productive.

I invite you to join me in applying specific solutions to these problems by engineering a new economy with a firm foundation. Fostering economic degrowth towards a steady-state doesn’t mean recession; it means fostering a balanced, manageable level of resource flows. It doesn’t mean going back to the dark ages; it means a life more happily and meaningfully lived.

Using the power of entrepreneurship and innovation, we need to find common purpose in the realignment of our overarching social and economic goals — not toward yesterday’s notions of solidarity or neoliberalism — but towards pragmatic and meaningful capital maintenance for prosperity without growth.

Join us on October 27th at 7pm at the Eastman Education Centre to learn more about how we can engineer prosperity without growth.

by James Johnston of the Centre for the Advancement of the Steady State Economy (CASSE)

Is Growth Always Good?

I recently had a conversation with a local farmer who reflected that the farm work he is able to complete before breakfast today, would have taken his father, in his time, the best part of a week to complete. Bigger, better-designed machines have made this possible. But that’s not all. Indeed the 400 HP tractor replaced the 40 HP tractor, but farmers and researchers also found ways of increasing crop yield more than four fold.

This is just one example of the efficiencies we have gained  in the last 100 years. So how have we all benefited from this increased efficiency? A single farmer today replaces ten farmers of yesteryear. What are the nine “surplus farmers” doing? Something good, I hope! Well some of these “farmers” are now working in a factory where they are building the tractors today’s farmer needs. Others are building roads, and others are marketing farm produce. That all seems to be good.

However, many of the displaced farmers are now working in factories making widgets we do not need. Others are working in the advertizing sector where they are trying to persuade us that we need the widgets that are being produced. And others are working at landfills where these widgets end up very shortly after they have been bought. Some have become doctors, doctors that deal primarily with diseases brought on by overeating and inactivity.

There are two ironies in the situation I have described. First, surely increased efficiency ought to result in increased leisure. Surely, time spent at leisure is better than time spent making unneeded widgets. That increased leisure should give parents more time with their children, teachers more time with their students and nurses more time with their patients. But we all know this has not happened. Parents, teachers and nurses all seem to have less time to do the things they know to be important.

The second irony is that as humans become more efficient in the use of their time, they of necessity replace human resources with other resources. Unfortunately most of the resources we end up using more of are of a finite nature, whether that be fossil fuel, steel, or some other resource. Tragically, as we humans become more efficient in the use of our time, we also become more effective in diminishing the resources our children will need if they are to enjoy the same good life we enjoy.

Those are the down sides. Nevertheless, apparently we believe all economic growth has been good for us and we want to keep it that way. The only alternative we know to economic growth is recession with unacceptable levels of unemployment and worse. So we avoid even thinking of alternatives.

Fortunately, there are an increasing number of economists and other thinkers exploring alternatives. One place alternatives are being explored is at the Centre for the Advancement of the Steady State Economy (CASSE).

James Johnston, an associate with CASSE will be making a presentation at the Eastman Education Centre October 27, 7:00PM. Join us and learn with us.

Eric Rempel

Inspiration to Rethink Lifestyle

In the course of history, there comes a time when humanity is called to a new level of consciousness, to reach a higher moral ground. A time when we have to shed our fear, to give hope to one another. That time is now.

Activities that devastate the environment and societies continue unabated … The Norwegian Nobel Committee has placed the central issue of the environment and its linkage to democracy before the world.

The challenge is to restore this home … and give back to the children a world of beauty and wonder.

The world needs lifestyle rethinkers. Consider the example of this courageous and brilliant Kenyan woman.

With humble beginnings in a small village, she became the first East African woman to earn a PhD, then taught in a Kenyan University. From her position of relative privilege, she was moved especially by the poverty of rural women and the scarcity of water and fuel to found the Green Belt movement, a grass roots organization, which to date has planted more than 35 million trees in Kenya and nearby countries.

Empowering rural women to believe they could be foresters led them to challenge the forest destruction fuelled by post colonial greed and corruption. In the 1980s and 90s, she and others were beaten and imprisoned for speaking out in defense of democracy and the environment. She lost her academic position.

But by 2004, when she said the above words in her Nobel Peace Prize acceptance speech (the first African woman to be so honoured), trees planted by the first Green Belt women’s groups were being harvested for lumber, arid and dry lands were reforested, streams were again flowing, and soldiers were planting trees alongside villagers.

The inspiring story is told in a documentary video, Taking Root: the Vision of Wangari Maathai. Who?? Most of us have never heard of her. She was a lifestyle rethinker, and her thinking led to practical action … the simple act of collecting tree seeds, propagating them, establishing local nurseries, and then planting and tending the seedlings, eventually by the millions All accomplished by dozens of women’s groups throughout the country. The Kenyan countryside is being transformed and revived by these simple, practical activities and the Green Belt movement has spread throughout East Africa.

Initially, the women did not believe they were capable. Many were illiterate. Their cultural tradition did not include tree planting among women’s tasks. “You need a diploma to plant a tree” professional foresters told them.

But Maathai doggedly questioned all the assumptions – the women’s, the foresters’, the corporations’, the governments’ – and pushed for change. Why were forest lands being clear-cut, why were parks and preserves being logged, why were people being jailed and mistreated for challenging government corruption?

There was push back by those in power - beatings, death threats, imprisonment – but changes came. And finally recognition and acceptance for Wangari Matthai. She died of cancer September 25 at age 71.

Some lessons for me emerge from her story ….

I need to watch more good documentary and fewer “entertainment” videos. Like Wangari Maathai’s story, they inspire! This video and others are available from SETI.

 

I can sit back and let the “powers” run the show, but eventually my family and I will feel the environmental impact of greed, mismanagement and bad policy.

Look around. What is obviously incongruent in our lifestyle? What is clearly destructive and unsustainable? I need to respond with personal lifestyle changes, but I need to also question and challenge government and corporate practice and policy.

Take this link to the movie web site.

Take this link to the Green Belt web site.

 Tim Kroeker

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Election Timidity

Surely, it is reasonable to ask why it is that those currently vying for political office in Manitoba are studiously avoiding the truly important issues we are facing. The important question any thinking person must be asking is: what leadership is our government giving with respect to our addiction to energy consumption and our oblivion to the pollution we are creating.

In 2008, amidst much fanfare, the then Doer government announced its “Climate Change and Emissions Reduction Act”. The government committed then to reduce greenhouse gas emissions to six percent below 1990 levels by 2012. Well we have not come even close to reaching that target. Doer suggested in 2008 that if we did not reach this target, this would be a good and adequate reason to defeat the NDP at the polls.

But dismally, the only opposition party that has shown any interest in this failure is the Green Party. The other two parties, it seems could not care less. One can only assume that if they form the government, they expect to do even less with respect to greenhouse gas emissions and the squandering of energy.

This is no trivial matter. In spite of windmills and ground source heat pumps, our dependence on fossil fuel in continuing to increase. We do not need statistics to know that. We build more efficient cars, but we drive more. Look at our highways. We have more efficient furnaces, but we build bigger houses. Our grocery shelves continue to burgeon with produce transported from all parts of the world. We mandate biofuels, but do nothing to decrease consumption. A holiday is not holiday if it is not fueled by energy.

Remember, we have already consumed the readily accessible oil. Were this not the case, we would not be extracting oil from the bitumen deposits in Alberta. The bitumen deposits may be vast, but not all the deposits are as easy to get at as the stuff we are extracting now. Inevitably, we will move from the more accessible bitumen to the less accessible stuff. Were the oil found below the shallow waters of the Gulf of Mexico not gone, we would not be drilling for oil deposited one mile below the surface of the ocean. The easy to get oil is gone. Puff! After we have extracted the oil deposited below a mile of ocean, we will drill for oil below two miles of ocean. And this trend will go on until the energy required to extract the oil is equal to the energy available from the oil.

To believe that we can have cheap energy forever is a fantasy. To believe that we are entitled to cheap energy is utterly and disgustingly self-serving.

There is only one policy that will break our addiction to energy, and that is a carbon tax. British Columbia has a carbon tax, although it is a very small tax at this time. BC has taken a small step in the right direction.

Oh, that Manitoba politicians had such courage and vision!

Eric Rempel

Why South Eastman Transition Initiative

Many people are concerned about the impact our lifestyle has on others, both “others” as those living elsewhere in this world now, as well as “others” as future generations. They doubt that resources we take for granted and consume as if they are inexhaustible will still be there when our children and grandchildren need them.

So we have this concern, so what? So what can we, what do we, do about it? As individuals anything we do will have little effect. If we wait for government, it is likely to be too late. But if we form a group, where we act together, we may be able to do something as a group that will make a difference.

There are, of course, already many groups that speak to our concern. Some names are very familiar to us: Greenpeace International, the David Suzuki Foundation, and Al Gore’s Climate Crisis initiative quickly come to mind. Some of my favorites are The Post Carbon Institute, the Center for the Advancement of Steady State Economy, the Carbon Tax Center and the New Economics Institute.

I appreciate the contribution all these groups are making to the conversation we all need to have about responsible living. Having said that, I may not agree with everything these groups do, say or advocate. Nevertheless, I think we need much more dialogue and knowledge about the ideas these groups are putting forth. We need to take the actions they are advocating.

But none of them focus on southeastern Manitoba.

In contrast to these large international groups, there are several intentional communities in the Southeast that focus very much on responsible living. In the southeast, I am aware of the Northern Sun Farm, the Prairie’s Edge Eco Village, and the Ploughshares Community Farm. Each of these communities is made up of people very committed to responsible living and who have concluded that responsible living can best be done in a community. I find their logic quite convincing and their gentle way of living commendable, but personally, I am simply not ready to commit to that lifestyle. I suspect in this regard many others are like me.

This means that we need a group that brings together residents of southeastern Manitoba who share this concern about the way we live. The group facilitates conversations and allows for the possibility of group actions that will have a greater impact on our community than each of us acting individually. The South Eastman Transition Initiative tries to be such a group.

Currently the South Eastman Transition Initiative is lead by a steering committee consisting of four people. However, the initiative needs direction from a broader base. There is a need for people of like mind to come together, to evaluate what we have done so far, and consider what we ought to be doing down the road.

Such an evaluation/planning event is scheduled for September 22, 7:00 PM at the Eastman Education Centre, 385 Loewen Blvd. Please join us. 

Eric Rempel

Simply in Season

In 2005, Mennonite Central Committee published a cook book called, “Simply in Season.” It is a delightful work that gently invites us to eat fresh, seasonal foods instead of relying on the mono-culture of produce found in supermarkets year-round.

Here in Southeastern Manitoba, we have four very distinct seasons. I lived in a tropical climate for a number of years where temperatures and daylight hours varied only slightly throughout the year. After a few years I found this quite monotonous. When I came back home I gained a renewed appreciation for the ever-changing seasons in this part of the world.

As I reflect on the many tidbits of writing scattered throughout, “Simply in Season,” I am reminded that a sustainable lifestyle requires two things of us all – living more simply and making the most of each season.

Living more simply is not as simple as it sounds. Every day we are bombarded with messages telling us that in order to be happier and more fulfilled we need to buy more stuff, travel more widely, participate in more activities and eat “fast” and “processed” food. Mostly we believe these lies.  

Yet, if we are to survive as a human race with any degree of social justice, we will need to move toward simplified lifestyles. Our earth simply does not provide enough resources for all of its citizens to live the consumptive lifestyles we have become used to in the western world.

Living more simply will mean different things for different people. For my Ruth and me, it means walking or biking more, down-sizing to become a one-vehicle family, growing most of our own vegetables and, if at all possible, purchasing whatever else we need locally. That may not seem like much, but we are in transition. 

And that brings me to the idea of making the most of each season. Supermarkets and shopping malls have pretty much obliterated seasons for most of us. Apart from seasonal changes in the clothing stores, most everything remains the same all year round. We can buy California lettuce and “notional” tomatoes any day of the year, plus fruit from the farthest corners of the world. And no matter what the weather, we are accustomed to climbing into our climate-controlled vehicles and burning precious fuel to get ourselves around.

So the lifestyles we have adopted have gradually removed us from living well “in season.” A simpler lifestyle re-connects us with the diverse challenges and delights that each season brings. My favorite season is autumn. It is the time of the year when we eat mostly from our garden. All year I look forward to biting into that first vine-ripened tomato as well as other organically grown vegetables fresh from the garden. And the colors of autumn never cease to amaze me.

I am convinced that the more we simplify our lives the more we will get in touch with our four distinct seasons – a blessing we cannot really afford to miss.

Jack Heppner

It Is Time to “Raid” Manitoba Hydro

Manitoba Hydro is important to Manitobans. It has allowed us to harness the vast energy potential of our rivers, so is a so it is not surprising that the routing of the BiPole III and talk of privatizing Hydro are already significant election issues. The PCs speak to inefficiencies at Manitoba Hydro. Jon Girrard blogs that Manitoba Hydro should not be treated as a “milk cow”.

Unfortunately, what is missing is any discussion as to what role energy, or more precisely cheap energy should have in the development of Manitoba. Because of its many rivers, and because of the infrastructure developed by Manitoba Hydro, Manitobans have access to an incredible amount of electric energy. The question is what how should that energy be used.

Unfortunately, we have all come to believe that we are entitled to cheap energy – yes, cheap gasoline, but also cheap electricity. Note the size of the homes and public edifices we are building, the exorbitant lighting we all take for granted, and our passion for perfect temperature control, both summer and winter. We have come to believe we are entitled to all of this, and that it will be there for us – always.

So we have a cheap energy policy. That is, because the production of hydro electricity is cheap in Manitoba, we believe we should also have low electricity rates. I believe this is unfortunate because it results in an unnecessary, potentially harmful dependency on cheap electricity. Cheap energy encourages the consumption of energy, and then, inadvertently, the wastage of energy.

Manitoba Hydro advocates for more efficient light bulbs, better insulation, and promotes energy efficient appliances, but the economic incentive to follow these recommendations is weak – because of our cheap energy policy.

If we believe that using more efficient light bulbs and more insulation is good, Manitoba needs to change its policy with respect to energy pricing.

Consider that most of us have become quite comfortable with a consumption tax on alcohol and tobacco. We have accepted that income taxes and property taxes are necessary. However, we resist a tax on energy. This makes no sense.

Consider a hypothetical firm paying $1,000 tax on profit and $1,000 for electricity. Now, because of a policy change, the tax on profits becomes $1,500 and the cost of electricity becomes $500. Such a policy change would create an incentive to do what? Hire another accountant to look for ways of reducing the tax. This is hardly desirable behaviour from a social point of view.

Now what if the policy change results in a tax on profits of $500 and the cost of electricity becoming $1,500. The incentive now is to reduce electric consumption. This is desirable behaviour.

Manitoba has an amazing resource in its hydroelectric potential. Manitobans are entitled to benefit from that resource, but that benefit should not be in the form of cheap energy. The benefit should be in the form of lower income and property taxes.

Eric Rempel