From Uneconomic

Growth to a

Steady-State Economy

Herman E. Daly Emeritus Professor, School of Public Policy, University of Maryland, USA and Winner ofthe 2014 Blue Planetprize

ADVANCES IN

Edward Elgar Cheltenham, UK • Northampton, MA, USA Contents

Preface viii

1. Introduction: envisioning a successful steady-state economy 1

PART I EARLY DISCUSSION OF BASIC STEADY-STATE CONCEPTS

2. The economics of the steady State 9 3. In defense of a steady-state economy 18

PART II LATER EXTENSIONSINTO STANDARD ECONOMICS

4. Towards an environmental macroeconomics 39 5. Growth, debt and the World Bank 47

PART III RECENT REVIVAL OF THE GROWTH DEBATE AND POLICES FORA STEADY STATE

6. A further critique of growth economics 59 7. Moving from a failed growth economy to a steady-state economy 74 8. Climate policy: from 'know how' to 'do now' 87

PART IV ETHICAL FOUNDATIONS OF A STEADY-STATE ECONOMY

9. Incorporating values in a bottom-line ecological economy 95 10. Ethics in relationto economics, ecology and eschatology 112

v vi From uneconomic growth to a steady-state economy

PART V SHORT ESSAYS ON CURRENTISSUES RELATED TO GROWTH VERSUS STEADY STATE

A. MEANING OF GROWTH 131

1. Two meanings of '' 131 2. Whatisa 'greeneconomy'? 133 3. Wealth, illth and net welfare 135 4. Limits to growth-40 moreyears? 138 5. Krugman's growthism 142

B. BIOPHYSICAL LIMITS 145

6. Thermodynamic roots of economics 145 7. Dualist economics 147 8. A smarter planet? 152 9. Geo-engineering or cosmic protectionism? 154

C. ETHICAL AND PHILOSOPHICAL LIMITS 157

10. Presuppositions ofpolicy 157 11. Homo economicus versus person-in-community 159 12. The lurking inconsistency 161 13. Renewable ignorance 166 14. Depletion of moral capital as a limit to growth 169

D. REAL-WORLD ECONOMICS 171

15. Not production, not consumption, but transformation 171 16. What is the limiting factor? 174 17. Opportunity costof growth 178 18. Sustaining our Commonwealth of nature and knowledge 181 19. Uneconomic growth deepens depression 186

E. POPULATION 189

20. The big population question 1 gg 21. Open borders and the tragedy of open access commons 195 22. Elitist growth by cheap labor policies 199

[ Contents vii

F. MONETARY REFORM 203

23. Commodity money, fiat money and seigniorage 203 24. Nationalize money, not banks 206 25. The crisis: debt and real wealth 211

G. EMPLOYMENT 215

26. Füll employment versus jobless growth 215 27. Growth and free trade: brain-dead dogmas still kicking hard 218 28. The negative natural interest rate and uneconomic growth 221

H. TAX POLICY 227

29. What should we tax? 227 30. Modemizing Henry George 230

I. MISCELLANEOUS 233

31. Fitting the name to the named 233 32. The fracking of 237 33. A medical missionary's environmental epiphany 239

Index 243