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Capitalism and (De)Growth

Capitalism and (De)Growth

By Christopher Laughton
What is capitalism?
A kind of state?
An institution?
Some values?
A power structure?
Ideology?
A Culture?

What governs capitalism?
Supply and demand
Invisible hand
Enclosure of land
The drive to expand
Market mechanism
Class schism
Racism
The moral virtue of productivism.

Innovation!
Invest!
Impress!
Progress!
Entrepreneurial quest for
Technological success in
Pursuit of profit.

Laissez faire!
Free market
Free trade
Free enterprise
Freedom to buy
Wage slavery
And debt.

Individual self-interest!
Ambition
Addiction
Friction
Cut throat competition
Eat or be eaten
Grow or die.

I think about capitalism as a moment. A blink in time. Organic life has thrived on earth for4 billion years. Modern humans have been walking around for some 200,000 years, looking a lot like you and me. That magical moment of capitalism dawned just 500 hundred years ago with European colonial expansion that enabled the rise of fossil-fueled industrial economies.

Vital to that rise are hierarchical systems of class, gender and race that interact with markets to engineer—and to justify—unequal exchange .Those who engage in markets from superior positions get more for their money. Ecological value flows toward them and wealth accumulates. Those who sell labor and other resources from inferior positions tend to get drained. Degraded. Deforested. Eroded. Impoverished. Exhausted.

Net cultural exchange has flowed in the other direction: capitalist practices, values and myths have been impelled far and wide, with scant return of other traditions. Cultural features of capitalism now seem so omnipresent that it is difficult to imagine and to forge alternatives. The most ingenious maneuver of modernity is to propagate the perception that this moment fills all horizons. As a result, political left and right, pro-growth and degrowth, slug it out in a confined capitalocentric arena.

The biggest challenge faced by degrowth is the shallow historical depth and narrow cultural scope that circumscribe contemporary debates. How to break out?

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Degrowth by designed disaster?

How the conflation with neoliberalism and austerity unfairly reduces the idea of degrowth to absurdity – and where the degrowth movement can turn for answers to the crisis.


The degrowth movement has been developed in response to neoliberal reality, neoliberalism’s comically reductive view of human nature, its ecological blindness and the rise in social inequality it has brought about. Austerity politics embodies one of the most aggressive manifestations of neoliberalism, but curiously, the degrowth movement has been exposed to criticism from the (both liberal and Marxist) Left associating it with such politicsThis prompted many degrowth activists to insist that “your austerity is not our degrowth.” Despite the ideological variety and the occasional intellectual ricochets within the movement, I considered this so self-evident that I was somewhat bewildered to see an actual advocate of degrowth openly claim more or less the opposite. In his article on “Austerity and Degrowth” André Reichel attempts to redeem the ideas of neoliberalism and austerity from a degrowth perspective, suggesting that its mode of economic reasoning facilitates a transition to degrowth. I would like to seize this opportunity to reflect on the relationship between capitalism, austerity politics and degrowth.

The crisis as a dilemma for the degrowth movement

Reichel’s point of departure happens to be a formidable challenge for the degrowth movement bringing up the following questions: What would be an appropriate degrowth response to the economic crisis in Greece? Could Greece reasonably enter a degrowth path now – or do we have to grudgingly accept the need for growth-oriented Keynesian solutions for the time being, in order to avoid further economic hardship for the Greek population?

…click on the above link to read the rest of the article…

Exit from the Megamachine

Exit from the Megamachine

Why a social-ecological transformation is impossible without changing the deep structures of our economy

Opening a newspaper or listening to the radio news exposes us to a flood of catastrophic messages: devastating droughts, failing states, terrorist attacks, and financial crashes. You can look at all those incidents as unconnected singular phenomena, which is exactly what the common presentation of news suggests. From another angle, however, they appear as symptoms of a systemic crisis, with different branches that have common roots.

But in how far are we part of a larger system? Definitely, a Kenyan peasant and a Wall Street banker; a German Secretary of State and an Iraqi policewoman have totally different living environments – and yet they are connected by a global system that ensures that the Secretary of State can drink coffee from Kenia and that the banker’s penthouse is heated with oil that flows through pipelines guarded by the Iraqi police. This system accommodates flows of goods and financial capital as well as flows of information and ideas on how the world is and how it should be. This complex network has – like all social systems – a history. It has a beginning, an evolution and – eventually – also an end.

The megamachine

The global system that connects us is known under various names: Some call it “the modern world-system”, others “global capitalism”. I use the metaphor of the megamachine, coined by the historian Lewis Mumford. The modern megamachine emerged in Europe around 500 years ago in long-lasting social struggles and has spread around the globe with explosive speed ever since. From the beginning, it provided a fabulous increase in wealth for a small minority. For the majority, by contrast, it has meant impoverishment, radical exploitation, war, genocide and the destruction of natural resources.

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Limits to growth: policies to steer the economy away from disaster

The earth is a finite place. 

The existing economy is already environmentally unsustainable. It is utterly implausible to think we can “decouple” economic growth from environmental impact so significantly, especially since recent decades of extraordinary technological advancement have only increased our impacts on the planet, not reduced them.

Moreover, if you asked politicians whether they’d rather have 4% growth than 3%, they’d all say yes. This makes the growth trajectory outlined above all the more absurd.

Others have shown why limitless growth is a recipe for disaster. I’ve argued that living in a degrowth economy would actually increase well-being, both socially and environmentally. But what would it take to get there?

In a new paper published by the Melbourne Sustainable Society Institute, I look at government policies that could facilitate a planned transition beyond growth – and I reflect on the huge obstacles lying in the way.

Measuring progress

First, we need to know what we’re aiming for.

It is now widely recognised that GDP – the monetary value of all goods and services produced in an economy – is a deeply flawed measure of progress.

GDP can be growing while our environment is being degraded, inequality is worsening, and social well-being is stagnant or falling. Better indicators of progress include the Genuine Progress Indicator (GPI), which accounts for a wide range of social, economic and environmental factors.

…click on the above link to read the rest of the article…

Critical Self-Reflection as a Path to Anti-Capitalism: The Degrowth-Movement

Although growth-critique is currently in vogue and degrowth is mentioned favorably even by the pope in his most recent encyclical, there is as yet almost no scientific research on degrowth as a social movement.

We can now present the first empirical findings on the character of this movement, based on a survey we did at the 2014 Degrowth-Conference in Leipzig, in which 814 conference participants took part, and a cluster analysis of their responses. 

The main argument in our longer essay in German language is that degrowth is an emerging but heterogeneous social movement representing in its essence a critique of capitalism and social domination that makes self-transformation and current collective practices the starting point for a broad societal transformation. Our conclusions can be summarized in four propositions:

Disputes around degrowth and growth critique

Whether degrowth should be considered a social movement or merely a platform for the discussion of alternatives is controversially debated, as is the emancipatory substance and transformative potential of growth critique. Moreover, degrowth is often criticized as merely reflecting the post-materialist discomfort of the wealthy, educated and privileged who needn’t worry about issues of justice and distribution. Therefore, it is portrayed as a superficial and primarily cultural argument that avoids a critique of capitalism and, accordingly, confrontational political positions and practices.

In contrast to this, Ulrich Schachtschneider has recently shown in an analysis of the Leipzig conference program that at least the community gathered there does seem to be united in emancipatory approaches and a critical view of capitalism. Several other authors have attempted to further categorize the heterogeneity of growth-critical actors in order to specify the rightful addressees of such criticism.

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My Journey toward degrowth

Growth means a process of increasing in physical size. When we think of economic growth, it is difficult to fathom what exactly grows, since ‘the economy’ is an invented concept that describes billions of human interactions as if they were one giant entity.

But gross domestic product is a rate — the total money value of economic activity per year — and thus growth really means acceleration. Degrowth, according to this understanding, is slowing down. 

In 2015, I slowed down a lot. I moved from Seattle to London to Barcelona predominantly by bicycle and entirely upon the surface of the earth. This physical journey was the culmination of an intellectual journey from my undergraduate education in market-focused environmental economics to a newfound passion for what my supervisor Giorgos Kallis calls political ecological economics.

Setting aside some of my big ambitions — studying, writing, trying to amass twitter followers — to simply move slowly evolved my understanding of how to degrow. Maybe degrowth doesn’t mean constantly, insistently pressing to spread and advance our small movement. And maybe that’s okay.

The bicycle is a tool for degrowth

Critical philosopher Ivan Illich writes that bicycles enable people to “become masters of their own movements without blocking those of their fellows.” Of all modes of transport, the bicycle consumes the least energy carrying humans a given distance.

Choosing to travel by bicycle disobeys the growth economy’s unwritten mandate to continually speed up the pace of life. Political scientist-anthropologist James C. Scott might call it an act of everyday resistance — especially if we ride bikes every day.

Cycling to our jobs, schools, errands, and gatherings demands that we reorganize our lives to accommodate longer travel times and the occasional soaking rain, while cycling to destinations on the other side of the world requires letting go of other aspirations for months at a time.

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Let’s define Degrowth before we dismiss it

Let’s define Degrowth before we dismiss it

The reluctance of degrowth-critics to define growth makes for poor debate

Diverse commentators such as Samuel Farber, Paul Krugman, and Leigh Phillips are arguing that economic growth is necessary to protect existing, and future well-being.

Diverse leftist commentators such as Samuel Farber, Paul Krugman, and Leigh Phillips are arguing that economic growth is necessary to protect existing and future well-being. But rarely do they define what they mean by economic growth.

Recently there’s been a wave of arguments defending economic growth from a leftist perspective. People are increasingly reacting to the rise of ‘degrowth’: a diverse movement calling for, among other things, scaling back the total material and energy use of the global economy.

One particularly vigorous example is the work of Leigh Phillips, where he accuses degrowthers—who he claims have become “hegemonic” (file under: things I wish were true but aren’t)—of undermining classic leftist pursuits such as progress, well-being, and strengthening of social services. Similar arguments could be seen in a recent article that appeared in Jacobin Magazine, in which growth was posited as necessary for progress. And Keynesian economists like Paul Krugman have come out against degrowth, claiming that economic growth is actually necessary to address climate change, and lumping degrowthers together with the Koch Brothers, as they both seem to seek to dismantle the state.


When two sides of an argument have a totally different definition of the concept that’s being debated, and if one side even refuses to define it, constructive discussions tend to turn into uncompromising squabbles.


Many of their points have been valid and necessary—serving to complicate the simplistic ‘are-you-for-capitalism-or-a-Luddite?’ narrative. Preaching the benefits of technology and criticizing the current economic system are not mutually exclusive. But there are some recurring problems with these arguments that I want to highlight.

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Collaboration and changing beliefs are two keys for a degrowth economy

Collaboration and changing beliefs are two keys for a degrowth economy

Brazil is an amazing country, full of natural richness and blessed with many beauties. It has, however, a terrible sin on his shoulders: the thought that everything has to be done in a different, shorter, and faster way – in a way that takes advantage of everything. This is also why Brazil is currently undergoing a huge economic and political crisis, particularly reflected by the lack of confidence of our people in our government. At the same time, this is precisely what makes people overthink their values, and so a silent revolution is happening.

I work with the Transition Town Movement in Brazil from the moment it has started in our country. Being one of the people who brought it here, I feel like a witness of how its seeds are growing and how we start thinking about another way of living that is more sustainable and resilient.

In the early times of the movement we talked a lot about peak oil and climate change and about how we can degrow our consumption and stop climate change. Today, however, with the passing of the years and the growth of the movement, we feel that one of the biggest contributions of the movement to our society is incentivizing cooperation between people and encouraging creativity to find solutions to these problems.

This collaboration is even creating new ways of doing business in Brazil, the “collaborative economy” or “reconomy” where growth and consumption are not the highest priority, but the pursuit of a meaningful and much happier life. In the light of this, there are suddenly many beautiful business proposals around where collaboration and not consumption is the key to this new way of living. Some of these innovative business ideas I would like to share with you here.

…click on the above link to read the rest of the article…

What is Degrowth? Envisioning a Prosperous Descent

What is Degrowth? Envisioning a Prosperous Descent

This is a transcript of my keynote address presented at the ‘Local Lives, Global Matters’ conference in Castlemaine, Victoria, 16-18 October 2015. Other keynote speakers included Rob Hopkins, David Holmgren, and Helena Norberg-Hodge.

INTRODUCTION

Thank you for that introduction, Jacinta, good morning everyone. I would like to begin by acknowledging the traditional owners of this land and to recognise that these have always been spaces of teaching, learning, sharing, and conversation. It is a real honour to be part of this conversation today.

When I was a boy, if ever I were amongst a group of people congregating at 9am on a Sunday morning it was because I was at Church. For better or for worse, I am now a lapsed, or rather, I should say, a collapsed Catholic, although I remain a seeker. But as I look around the world today, especially from my Western perspective, it seems clear enough that God, if he is not yet dead, as Friedrich Nietzsche declared, is, at least, increasingly absent. There seems to be a tension between our spiritual sensibilities and the cultures and systems within which we live. As the poet-musician, Tom Waits, would shout in the voice of a husky wolf: ‘God’s away on business.’

But the absence of God should not imply an absence of religious thinking in our culture or cultures. In fact, I would argue quite the opposite; that our Western religiosity has become ever more intense in recent decades, and what has happened is that we simply switched idols, no longer worshipping the God of Christianity, and instead worshipping at the alter of growth, singing praises to the God of GDP, our saviour, for only in growth will we find redemption. Our high priests now take the peculiar form of neoclassical economists, bankers, and national treasurers.

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The Left should embrace degrowth

The Left should embrace degrowth

Stop sign and poppy [Related Image]
Only if we stop the cycle of endless growth will our planet prosper, argue Degrowthers. Jenny Downing under a Creative Commons Licence

Degrowth is a frontal attack on the ideology of economic growth. Some call it a critique: a slogan or a ‘missile word’. Others talk of the ‘theory of’ – or the ‘literature on’ – degrowth; or of degrowth policies’. Many see themselves as the ‘degrowth movement’ or claim they live ‘the degrowth way’. What is degrowth and where did it come from?

Origins

Intellectually, the origins of degrowth are found in the Continental écologie politique of the 1970s. Andre Gorz spoke of ‘décroissance’ in 1972, questioning the compatibility of capitalism with earth’s balance ‘for which … degrowth of material production is a necessary condition’. Unless we consider ‘equality without growth’, Gorz argued, we reduce socialism to nothing but ‘the continuation of capitalism by other means – an extension of middle-class values, lifestyles and social patterns’.

‘Demain la décroissance’ (‘tomorrow, degrowth’) was the title of a 1979 translated collection of essays of Nicholas Georgescu-Roegen, a Romanian émigré teaching in the US and a proto ecological economist who argued that economic growth accelerates entropy. These were the times of the oil crisis and the Club of Rome. For continental ‘red-green’ thinkers, however, the question of limits to growth was first and foremost a political one. Unlike Malthusian concerns with resource depletion, overpopulation and collapse of the system, theirs was a desire for pulling the emergency brake on the train of capitalism, or, to quote Ursula Le Guin, ‘put a pig in the tracks of a one-way future consisting only of growth’.

The slogan ‘décroissance’ was revived in the early 2000s by activists in the city of Lyon in direct actions against mega-infrastructures and advertising. Serge Latouche, a professor of economic anthropology and vocal critic of development programmes in Africa, popularized it with his books, calling for an ‘End to sustainable development’ and ‘a long life to convivial degrowth’.

…click on the above link to read the rest of the article…

What is Degrowth? Envisioning a Prosperous Descent

What is Degrowth? Envisioning a Prosperous Descent 

What is Degrowth? Envisioning a Prosperous Descent

This is a transcript of my keynote address presented at the ‘Local Lives, Global Matters’ conference in Castlemaine, Victoria, 16-18 October 2015.Other keynote speakers included Rob Hopkins, David Holmgren, and Helena Norberg-Hodge.

Introduction

Thank you for that introduction, Jacinta, good morning everyone. I would like to begin by acknowledging the traditional owners of this land and to recognise that these have always been spaces of teaching, learning, sharing, and conversation. It is a real honour to be part of this conversation today.

When I was a boy, if ever I were amongst a group of people congregating at 9am on a Sunday morning it was because I was at Church. For better or for worse, I am now a lapsed, or rather, I should say, a collapsed Catholic, although I remain a seeker. But as I look around the world today, especially from my Western perspective, it seems clear enough that God, if he is not yet dead, as Friedrich Nietzsche declared, is, at least, increasingly absent. There seems to be a tension between our spiritual sensibilities and the cultures and systems within which we live. As the poet-musician, Tom Waits, would shout in the voice of a husky wolf: ‘God’s away on business.’

But the absence of God should not imply an absence of religious thinking in our culture or cultures. In fact, I would argue quite the opposite; that our Western religiosity has become ever more intense in recent decades, and what has happened is that we simply switched idols, no longer worshipping the God of Christianity, and instead worshipping at the alter of growth, singing praises to the God of GDP, our saviour, for only in growth will we find redemption. Our high priests now take the peculiar form of neoclassical economists, bankers, and national treasurers. Daniel Bell once wrote in his landmark text, The Cultural Contradictions of Capitalism: ‘Economic growth is the secular religion of advancing industrial nations.’

…click on the above link to read the rest of the article…

The decoupling debate: can economic growth really continue without emission increases?

 

A year ago, in one of our most popular web articles, our group, Steady State Manchester took issue with claims from New Climate Economy (NCE) that there was no conflict between climate change mitigation and continued economic growth. NCE argued that by taking action on climate change economic growth could be boosted. While NCE marshalled a lot of useful information on the how of emissions reduction, emphasising the role of cities, investment in clean energy, and adopting more efficient technologies in aviation and shipping, their argument relies on the idea that economic (i.e. GDP) growth can be decoupled from the growth in GHG emissions. While the emphasis here is on the relationship between GDP and GHG emissions, similar analyses are needed for the material flows underpinning transgression of the otherplanetary boundaries, in addition to climate change.

There are two kinds of decoupling1Relative decoupling means that the rate at which emissions increase is lower than the rate at which GDP decreases. That is not a lot of help in the climate crisis, since under relative decoupling, if there is economic growth, then GHGs continue to accumulate in the atmosphere, contributing to the already high risk of runaway global warming. Absolute decoupling on the other hand would mean that as the economy grew, emissions didn’t. If it could be demonstrated, then we might want to rethink our critique of endless economic growth.

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Austerity and degrowth – dealing with the economic crisis and the ecological crisis together

Austerity and degrowth – dealing with the economic crisis and the ecological crisis together

This article arises from increasing frustration and irritation about the way that the debate about Greece, and in general about austerity, is framed. My frustration is not only with the policy thugs who are implementing austerity, but also, to a degree, with their critics – which includes the failure of most of the critics of growth to actually get involved in this controversy and argue their own point of view. There have been attempts, for example by Nicola Hinton of the Post Growth Institute. It seems like a tough one to argue for degrowth in the context of the Greek crisis and as an alternative to austerity – but then all the more reason to try. Otherwise a movement for degrowth will never get out of the university lecture rooms into the real world. It will never become a guide or a narrative for the future of society to be realised in practical and popular politics.

Austerity – elite terrorism against ordinary people

So let’s start by reframing the debate about austerity. When Yanis Varoufakis describes what has happened to Greece as “Fiscal Waterboarding” he is part way in the direction that I mean. His description of austerity as a form of terrorism is also right.

The purpose of austerity is to create insecurity and instill fear in the general population in order to protect the finance and banking sector from popular rage against the crimes the participants of this sector have committed against ordinary people. This rage ought to have given rise a long time ago to legal actions and desperately needed fundamental reforms to take away from bankers the right to create money, a right which they have abused at tremendous cost to ordinary people.

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Post-Development Discourse: Lessons for the Degrowth Movement (Part 1)

Is degrowth only conceivable in the context of “oversaturated” industrial societies while the global “South” remains dependent on growth? In two installments, this article questions such assumptions. In this first part it introduces positions critical of development which refuse to adopt the Western model of prosperity; the second part will focus on the analysis of these positions with a view to their relevance for the European degrowth movement and the growth debate here.

A common objection against visions of degrowth is raised with regard to the material needs of large parts of the global population – those who live in so-called “developing” or “underdeveloped” countries under conditions of extreme poverty. This group, so the argument goes, essentially depends on growth in order to improve their living conditions.

Interestingly, this argument is often brought forward in order to justify further growth in the global “North,” i.e., growth which in the first instance would benefit much more privileged groups. This line of argument has been easily refuted by the degrowth movement which emphasizes that in view of increasingly scarce natural resources, further material growth in richer industrial countries would rather diminish the prospects for development in poorer regions. The claim that wealth generated in the “North” would somehow “trickle down” to the “South” – the traditional argument of radical free-market theorists extrapolated to the global level – has been too thoroughly discredited over decades of empirical evidence to deserve further attention here.

But even explicit critics of growth, in pursuit of the laudable goal of global justice, often argue that economic development requires further growth in the “South.” Indeed, their demand for an end to growth in OECD countries is often motivated by the desire to enable “sustainable development” in poorer regions. From the perspective of post-development theory, however, the assumptions underlying such demands are quickly revealed to be rooted firmly in Western ideas of progress and growth.

 

…click on the above link to read the rest of the article…

Learning beyond Growth

Deschooling as a Path to Social-Ecological Transformation

 

“Deschooling is at the root of any movement for human liberation”, wrote Ivan Illich, today almost forgotten but once a world-renowned critical thinker, in 1971. With books like “Deschooling Society” and “Energy and Equity” he inspired in the 1970s both the emerging environmental movement and the renewed interest in progressive education. But where are the connections between growth critique and critique of school education? And how could a world beyond alienated learning and growth pressure actually look like?

Growth, we keep hearing from politicians and business leaders, is indispensable in order to guarantee prosperity, peace and liberty. However, fewer and fewer people believe these incantations, as it has become too obvious that growth does not benefit all, but only a small class of the rich and super-rich. In many countries the damages caused by growth already outweigh its benefits: environmental destruction, stress, noise, loneliness and social divide. In the global competition for increasing the Gross Domestic Product (GDP), much of what makes life worthwhile is destroyed. On top of this, economic growth is ruining the ability of global ecosystems to regenerate – thereby threatening the long-term survival of humanity. In the face of these destructive consequences of growth, an intensive quest for alternatives to growth started in the 1970s, a debate which has been revived over the last years with the term “degrowth”.

Degrowth in this sense is not a static concept for an alternative system but rather an umbrella for a bunch of uncountable initiatives run by people who want to bring change to our day-to-day life: politically active people who oppose the continuous destruction of our environment and our societies as well as scientists who ponder how particular sectors of the economy or the infrastructure, e.g. transport or public health, could be designed in an ecologically and socially compatible way. These ideas have in common that they rely on the potential of alternative forms of social organization rather than on merely technical solutions. Nonetheless, the issue of learning and schooling is hardly ever discussed in this context, although it is deeply connected to the topic of growth.

 

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Olduvai IV: Courage
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Olduvai II: Exodus
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