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by kbenson
1019 days ago
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I don't deny that it's likely an exceedingly had thing to do, to transition, and that it's likely harder the longer you wait, just that when you're dealing with exponential growth that opting out too early is likely disastrous in it's own way. I think it's a mistake to assume stability in nations and a strong self governing community between them can be assumed at all points in the future, especially if there is some stop to exponential growth at some point (but not only because of that). Economic power is somewhat fungible with mitary power, and lack of power in a possible future less stable system of nations could be very problematic. In short I think the safest and most conservative path for any nation to protect it's future is to take advantage of as much growth as it safely can for as long as it lasts. Another way to look at is that is the U.S. was to opt out of growth right now, how long would it take for us to become irrelevant on the world stage, and how long after that before we were (and our citizens) negatively impacted by trade deals because of lack of leverage (which is probably a best case scenario of negative possibilities IMO). It's the job of a government to avoid that scenario. Transitioning is hard, but I'm not sure it's harder than the alternative, depending on how far out we are to it being forced on everyone. That said, I'd be happy to read whatever info you have on the topic to expand my thinking. |
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To that extent, "rapid growth" seems largely a matter of "reaching your ultimate potential earlier". And the post-rapid-growth phase turns out to have ... interesting challenges: environment, politics, demographics, and more, many of which emerge after sheer growth alone can no longer paper over conflicts or issues which had been present all along.
There's also of course the argument that GDP doesn't measure actual net wealth or common weal, which is a criticism that dates back to the origins of GDP/GNP, and even its creator, Simon Kuznets. There are numerous alternative measures that are proposed. One aspect I've not seen much addressed is that GDP is largely a tool for managing macroeconomic monetary dynamics, that is, as total monetary exchange grows or shrinks, then the monetary base itself must be adjusted, which is the remit of central banks. Those banks can create or destroy money at will (pursuant to policy goals and prime directives), because money itself is not wealth. The knock-on effects are felt profoundly in asset markets, that is, goods or securities whose principle or significant function is to serve as an inflation-resistant store of wealth: stocks, bonds, real estate, precious metals, collectables (art, wine, cars, etc.), and the like. Asset value inflation is not itself economic productivity. It may reflect economic productivity (that's at least the fig leaf covering stock markets), but far more often, asset inflation simply follows national and global monetary policy, most especially rising in times of loose money or easy loans (largely equivalent terms). John Kenneth Galbraith's The Great Crash 1929 remains an excellent post mortem of one such event. To that extent, measuring GDP growth alone provides distorted view of actual wealth growth, both at the level of individuals (say, median, bottom quintile), and of net national power and stability, though of course how distorted is the stuff of legendary disagreements.
There is a history of countries burning through growth potential with immense rapidity, most especially in the case of natural resources extraction. Instability in the Levant following the mid-2000s has been tied to loss of net-exporter status among oil producers (Syria, Egypt, Libya), as well as food scarcity through both climate-related crop shortages and reduced imports as oil revenues decline. One of the more spectacular cases is the Pacific island nation of Nauru, which underwent a birdshit apocalypse after (briefly) highlighting as the world's richest nation (per capita) after what proved to be a highly limited resource reached its limits. <https://www.nytimes.com/1995/12/10/world/a-pacific-island-na...>
The country's recovered somewhat by entering into the hospitality business. That is, it runs internment camps for the refugees Australia would prefer to pretend don't exist and sends elsewhere: <https://devpolicy.org/nauru-riches-to-rags-to-riches-2021041...>
To the extent that contemporary economies run on the basis of extraction (petroleum, coal, natural gas, minerals, groundwater, topsoil) and sink exhaustion (the ozone layer, heavy metal contamination, greenhouse gasses, plastics and endocrine disruptors, habitat and species disruption, ...), none of which are costed into either market transactions or national wealth/income statistics ... well, we're all on busses headed toward various cliffs, some nearer, some further.
One option is to expend resources on things which presently have relatively low value but would be exceedingly useful in a post-carbon / post-collapse society. That includes basic skills, sustainable practices, sustainable infrastructure, and the social patterns which can effectively utilise these. Keep in mind that this runs directly contrary to market signalling as markets have an overwhelming present-bias in assigning values, as anyone caught holding the bag after a crash can tell you. Potential future utility simply isn't considered, and in general, non-market mechanisms seem to be required to encourage such investments.
(There are other systems which similarly fail to consider long-term value, and it's long been a favourite trope to note the immense ecological contamination and pollution which occurred in the Soviet bloc. However similar desecration was seen both earlier and simultaneously under market systems ... both are poor at delivering ecological equity. Ultimate reforms have tended to emerge through social movements, legislation, and legal recourse, none of which are market-based.)
My final argument is that much of the advantages attributed to economic growth can be had at relatively low levels of same. That is, equity and distribution count for far more than total gross production or consumption. Invest in infrastructure, healthcare (with a strong emphasis on basic access and preventive measures rather than heroic interventions), education, affordable housing, social safety nets, and sustainable development of transport, built infrastructure (at individual building, community, regional and national levels), resource preservation and enhancement (e.g., water, soil, forest, and wildlands cultivation), actual productivity, mitigation of undesired consequences, and the like, and ... I think you might see a path which whilst it might not register on mainstream metrics is actually preferable over the long run.