Choosing between our economy and our future

12 02 2015

Christiane Kliemann

A guest post from Christiane Kliemann who writes on postgrowth, alternative economy and societal change. She is a member of the Degrowth 2014 team

The new year has just begun and we’re already inundated with horrible news: two new reports have collected further evidence that human economic activity puts life on Earth at risk, and another shocked us with the fact that the 85 richest people on the planet are as wealthy as the poorest 50% – and that the gap between them is still widening. Not to mention the brutal attack on the Charlie Hebdo office, the ongoing wars and conflicts in the Middle East and Ukraine and the devastating situation of refugees.

At the same time, a lot of effort is being spent to reassure us that economic growth and a capitalist economy are essential for solving what some call the “crisis of civilization”.

Growth is the perennial buzzword of the World Economic Forum – and this year is no exception. Delegates keep assuring us that their own profitability is vital for safeguarding humanity, while we ordinary people go about our day-to-day lives: we happily drive our cars, book flights to our next holiday destination and raise our children as we’ve always done.

It seems that we are in collective denial about the threatening implications of reality. We still trust in the old narratives that growth and competition are good, that technology and experts will fix it and that capitalism is history’s ultimate victor.

Not only ecological limits and growing social inequality, but also the increasing violence of fundamentalists of all sorts indicates that it is high time for a new economic and social narrative. An economy that is essentially based on competition will always perpetuate violence and hatred.

Wanted: new economic narratives

Before a new narrative – degrowth, for example – can gain ground, we have to accept that there are only radical options left. We have to choose between our economy and our future.

Even now, degrowth is already appealing to a growing number of people, as last year’s Fourth International Conference on Degrowth for Ecological Sustainability and Social Equity in Leipzig proved.

It embraces many aspects that are common to a rising number of social and ecological grassroots-initiatives around the globe:

  • Integrating social and ecological issues instead of playing them off against each other
  • Replacing economic growth with a holistic idea of wellbeing
  • Turning away from resource-intensive production and industrial agriculture
  • Claiming more democratic participation and co-creation
  • Preferring small and decentralized solutions with short feedback-loops, re-localization of economic cycles and decentralization
  • Prioritizing sufficiency and resilience
  • Creating resilient livelihoods instead of unstable jobs in fragile globalized supply chains

In circles closer to the mainstream, I have personally observed that criticizing the dependence on economic growth and calling for a social-ecological transformation of the economy is welcomed by many.

Doubts and reluctance stem from the widespread perception that transforming the system is unrealistic, given the powerful interests of the elites.

Ordinary people feel subject to, rather than masters of, their circumstances.

In order for the vision of a degrowth society to become broadly accepted as a realistic option, we need to agree on the following points:

  • Growth and climate stability are incompatible
  • Continuous growth does not increase prosperity
  • Growth will soon come to an end anyway
  • After a certain point, the ecological and social price paid for keeping up growth becomes unacceptable
  • Growth and Western consumption patterns are increasingly resented in the Southern Hemisphere
  • The “trickle down” effect has been proven wrong
  • There is no such thing as “green growth
  • Degrowth does not only mean less, but differently, i.e. meeting everyone’s needs more sustainably and equitably with fewer resources
  • Degrowth is not against innovative technologies, but requires them to be administered democratically and “convivially” based on the precautionary principle

It is high time to shape a broad social movement

Despite what corporate interest groups say, we can all understand that a good life does not require ever more traffic, bigger houses, and greater quantities of waste. We cannot square the benefits of “more stuff” when it threatens our ecosystem and coincides with extreme poverty in some parts of the planet.

A good life requires long-term security in meeting everyone’s basic needs: food, shelter, affection, leisure, protection, understanding, health, participation, creation and freedom. All of these requirements are dependent on a healthy planet.

If we take our oft-cited Western values seriously, there is no doubt that we have to change our ways and ensure that our values come before any corporate or private profit.

It is high time to shape a broad social movement that pressures governments and businesses to help adjust consumption and production habits to allow the good life for everyone. We want cooperation instead of competition, common instead of corporate interest, solidarity instead of greed, strong social relationships instead of meaningless consumption, mindful resource stewardship instead of extractivism and compassion instead of indifference. We demand less traffic, fewer mega-projects and more community-based policy.

It is high time to take our future in our own hands and to realize that our current economy is part of the problem and cannot be part of the solution.

Originally published in the Guardian.

Advertisements




Want to see what Financial Collapse looks like…..?

28 10 2013

Sourced from zerohedge and

Citi’s Matt King’ report recently showed when it comes to stepwise, quantum leap repricings of widely held credits, the revelation is usually a very painful, sudden and very dramatic one.  This can be seen nowhere better than in the default of Lehman brothers, where, while the firm’s equity was slow to admit defeat, it was nothing in comparison to the abject case study in denial that the Lehman bonds put in.

However, as can be seen in the chart below, when it finally came, and when bondholders realized they were screwed the morning of Monday, Septembr 15 when the Lehman bankruptcy filing was fact, the move from 80 cents on the dollar to under 10 cents took place in a heartbeat.

Lehman Repricing

It is the same kind of violent and anguished repricing that all unsecured creditors in the coming wave of heretofore “denialled” municipal bankruptcy filings will have to undergo.  Starting with Detroit, where, as Reuters reports, the recovery to pensioners, retirees and all other unsecured creditors will be…. 16 cents on the dollar!…  or less than what Greek bondholders got in the country’s latest (and certainly not final) bankruptcy.

From Reuters:

On Friday, city financial consultant Kenneth Buckfire said he did not have to recommend to Orr that pensions for the city’s retirees be cut as a way to help Detroit navigate through debts and liabilities that total $18.5 billion.

Buckfire said it was clear that the city did not have the funds to pay the unsecured pension payouts without cutting them.

“It was a function of the mathematics,” said Buckfire, who said he did not think it was necessary for him or anyone else to recommend pension cuts to Orr.

“Are you saying it was so self-evident that no one had to say it?” asked Claude Montgomery, attorney for a committee of retirees that was created by Rhodes.

“Yes,” Buckfire answered. 

Buckfire (what an appropriate name for this…!), a Detroit native and investment banker with restructuring experience, later told the court the city plans to pay unsecured creditors, including the city’s pensioners, 16 cents on the dollar. There are about 23,500 city retirees.

Creditors across all products, aided and abetted by the greatest credit bubble of all time blown by Benny and the Inkjets, will find the kind of violent repricings that Lehman showed take place whenever hope (or more rightly, confidence…) dies, increasingly more prevalent.   And since retirees and pensioners are ultimately creditors, this is perhaps the fastest, if certainly most brutal way, to make sure that the United Welfare States of America is finally on a path of sustainability.The only question is how will those same retirees who have just undergone an 84 cent haircut take it. One hopes: peacefully.  Because among those whose incentive to work effectively has just been cut to zero, is also the local police force.  In which case if hope once again fails, it is perhaps better not to contemplate the consequences.