We've been reading thru the great book, "Beyond Growth, the Economics of Sustainable Development" by Herman Daly. We would like to place excerpts from the book in the blog on occasion since as a trained economist Mr Daly is much better than us at discussing the new way the world economy should be structured.
How will we lift poor people out of poverty?
The answer is simple: by population control, by redistribution of wealth and income, and by technological improvements in resource productivity. In sum, not by growth, but by development.
Interesting how he makes a distinction between growth and development. In fact he mainly speaks of SUSTAINABLE DEVELOPMENT
His description of a Sustainable Economy is as follows:
The whole idea of sustainable development is that the economic subsystem must not grow beyond the scale at which it can be permanently sustained or supported by the containing ecosystem
Internalizing pollution and man made costs of production is a favorite of ours and Daly preaches it often as below:
...internalization of environmental costs into prices so that the polluter and the depleter pay. One powerful move in this direction is to shift the tax base from income(value added) to throughput(that to which value is added). Why tax what we want more of-employment and income? Why not tax what we want less of?--depletion and pollution?
We'll continue to republish parts of the book on occasion
Conservastore.com believes in sustainable development