In Defense of Degrowth
Photo by Paul Sableman | CC BY 2.0
The economist Branko Milanovic recently wrote a blog post titled “The illusion of degrowth in a poor and unequal world.” He penned it, he says, following a conversation he had with a proponent of degrowth.
As it turns out, that proponent was me.
First, let me say that I have a lot of respect for Milanovic’s work on inequality. I cite him all the time. But unfortunately he doesn’t have a strong grasp of degrowth. Let’s look at his argument in detail:
Milanovic rejects degrowth because he believes it is unfeasible. He notes, correctly, that if we were to cap global GDP at its present level then the only way to eradicate poverty would be through redistribution: reduce the income share of the richest and shift it to the poorest. He thinks this is a terrible idea. If we bring all of the poorest up to $5,500 per person per year (the global mean income), then in order to stay within the GDP cap everyone above this level (almost all of whom live in the West) will have to take an income cut, with the richest taking the biggest hit. This would also require “gradual and sustained reduction of production” in rich nations, with economic activity slashed to one-third of its present size.
Milanovic calls this “the immiseration of the West,” and he dismisses it as “not even vaguely likely to find any political support anywhere.” Forget about it, he says; we need growth. Let’s focus instead on reducing our consumption of emissions-intensive goods and services by taxing them, and “think about how new technologies can be harnessed to make the world more environmentally friendly.”
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