Prosperity Without Growth: Economics for a Finite Planet

[Gordon]

The book Prosperity Without Growth: Economics for a Finite Planet by Tim Jackson (published 2010; a paperback edition is due out in March 2011) was reviewed by Jeremy Leggett in the Guardian 23 January 2010. This book draws attention to the unsustainability of our economic system based on ever expanding gross national products (and populations). "Is more economic growth the solution?" asks Jackson "Will it deliver prosperity and well-being for a global population projected to reach nine billion?"
Legget summarises the argument:

Endless growth is a ridiculous notion to the typical ecologist because we live on a planet with finite resources ... But the typical economist believes we can "decouple" GNP growth from resource use through the increased efficiency that tends to be intrinsic to capitalism: that we can grow our economies and reverse environmental degradation too. ...
Jackson argues compellingly that such "decoupling" is a myth.

Jackson's stance is outlined in his blog

I realise that this is a challenging position. It’s meant to be. It raises quite explicitly the question of whether the richest nations may already be living beyond their means, and in the process making it impossible for others to live at all. If it’s impossible for us all to aspire to such material wealth, then it’s irresponsible for some of us to. Live simply that others may simply live, is the way that Gandhi put this. And in the same token, my position is also designed to challenge the idea that living well is simply a matter of having more material things. More Ferraris, in Daniel’s currency, don’t necessarily make for a better life

[Gordon]

I have now read this book (available from Devon public libraries) and thoroughly recommend it. Maybe we aren't all doomed - perhaps there is a solution. However radical changes are needed to our present economic systems based on growth.

The impossibility of continuous economic growth on a planet with finite resources was first emphasised by Malthus in "An Essay on the Principle of Population" (1798). However, he did not allow for massive technological changes by which the means of subsistence outgrew the increase in population even with increasing affluence. More recently, Meadows, Meadows and Randers ("The Limits to Growth" 1972 and "Beyond the Limits" 1992) revisited this impasse and concluded that to avoid collapse we must move toward sustainability. World population has risen from about 2.6 billion in 1950 to a present value of 6.9 billion and may reach more than 9 billion by 2050. Over the period 1950-2009, the world economy has grown by a factor of 5.

Tim Jackson in "Prosperity without Growth" believes that "A world in which things simply go on as usual is already inconceivable. But what about a world in which an estimated 9 billion people all achieve the level of affluence expected in the OECD nations? Such an economy would need to be 15 times the size of today’s economy (75 times what it was in 1950) by 2050 and 40 times bigger than today’s economy (200 times bigger than in 1950) by the end of the century. What on earth does such an economy look like? What does it run on? Does it really offer a credible vision for a shared and lasting prosperity?" Obviously not; we are limited by the Earth's resources (water, minerals, oil, agricultural land, ...) and sinks (carbon - global warming, absorption of our waste, ...). The titles of Jackson's chapters indicate his analysis and solution: "Prosperity Lost", "The Age of Irresponsibility", "Redefining Prosperity", "The Dilemma of Growth", "The Myth of Decoupling", "The 'Iron Cage' of Consumerism", "Keynesianism and the 'Green New Deal'", "Ecological Macro-economics", "Flourishing - Within Limits", "Governance for Prosperity". He points out that "prosperity is not synonymous with material wealth ... Rather prosperity has to do with our ability to flourish: physically, emotionally and socially" (but material growth is desperately needed in many developing countries).