Thursday, 26 May 2011

A Resorce Limited Economy - fear

I have written before, and it is undeniable that we live in a finite world. We cannot use more resources than we have. That's a fact, not an opinion.

Given that limit, we have the choice to co-operate and conserve, or compete and deplete. I think the big problem is that if we don't know that we've got enough resources to share, the logical position is to get what one can for oneself - ie compete. Yes, there will be those who trust enough to share / co-operate on the grounds that it is fair, but there will be others, starting from a fear of scarcity, who will seek to reserve / own / hoard what they think they need plus a buffer or store against shortages.

Saturday, 14 May 2011

Growth cannot continue for ever

"Anyone who believes in indefinite growth in anything physical, on a physically finite planet, is either mad - or an economist". Kenneth Boulding, JFK's environmental adviser.

Yes money can grow indefinitely, but it is not a physical thing. The amount of money that exists continues to grow, as it must because of interest, but the amount of actual useable resources does not. Therefore our priority must be to make the best  - sustainable - use of them.

Don't be sidetracked by talk of deficit reduction. Reducing the deficit is only reucing the amount of money that's added to the National Debt in a year.