Last week, Capital Institute network organization Demos released a striking report and series of graphics on the myth that economic growth equals progress. The report lays out the argument for rethinking our national accounts while the graphics visually detail the failures of GDP as a measurement of progress.
“Mismeasuring our Lives: Why GDP Doesn’t Add Up,” a panel discussion held at Columbia University on December 7, brought four distinguished economists together for an open conversation that began with the need for policymakers to look beyond GDP as a standard economic measure to address both ecological constraints and human well-being but moved to the central challenge of our time: can economies continue to grow without degrading the ecosystem and if not, what are the alternatives?
Sponsored by the public policy research and advocacy organization Demos, the event featured panelists Alan B. Krueger, most recently the US Treasury's Chief Economist and currently Bendheim Professor of Economics and Public Affairs at Princeton University; Glenn-Marie Lange, Senior Environmental Economist at the World Bank; Juliet B. Schor, Professor of Sociology, Boston College; and Joseph Stiglitz, Nobel Laureate and Co-Chair of the Committee on Global Thought at Columbia University.
CASSE Issues Enough is Enough: Ideas for a Sustainable Economy in a World of Finite Resources - A Report from the First Steady State Economy Conference
The Center for the Advancement of the Steady State Economy (CASSE) held its first conference, in Leeds, UK, on June 19, 2010, with a focus on finding alternatives to current models of economic growth. Featuring members of the Capital Lab-sponsored 3rd Millennium Economy steering committee Tim Jackson and Peter Victor, the conference brought economists, scientists, business leaders, government officials and the NGO community together to help mold the vision of a steady state economy.
While most global leaders and economists extol the virtues of unfettered economic growth, conference speakers made the point that the economy is a subsystem of the earth’s ecosystem and is a human construct. Despite these known facts and the recent global financial meltdown, exponential economic growth continues to be almost universally perceived as a desirable outcome.
"It has always been so obvious to me that if you change the scorecard you change the game," says Hazel Henderson.
Capital Institute owes much to the thought leaders who have helped frame our perspective on “the purpose of capital," and Hazel Henderson is among those to whom we are most indebted. Hazel never ceases to amaze me. Susan Witt, Executive Director of the E. F. Schumacher Society, once described Hazel as a "national treasure." It's true. Never formally trained in economics, Hazel's grasp of the subject, particularly its shortcomings, is remarkable. Hazel is a systems thinker, with a unique grasp of the multiple disciplines necessary to be able to see, holistically, the systemic challenges we face. Yet it's Hazel's intellect, energy, passion, generosity, and drive, often against the grain where it can be lonely, year after year, "self inflicted" I might add, that is so special. I owe a great personal debt to my teacher, advisory board member, and inspirational friend, Hazel Henderson. —John Fullerton, Founder, Capital Institute