We Speak For Earth

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Posts tagged "economy"

Listen to the news today and you would think that economic growth was the only answer to all our problems. But 40 years ago The Limits to Growth, written by a group of scientists at the Massachusetts Institute of Technology and published by The Club of Rome, broke a modern taboo: it suggested that growth itself might be the problem.

It wasn’t the first time someone had suggested that an economy endlessly expanding in scale was neither possible nor necessarily desirable. As long ago as 1821, David Ricardo wrote of the ultimate equilibrium to which economic development led. And, in his Principles of Political Economy, 1848, John Stuart Mill raised and answered the question like this:

“Towards what ultimate point is society tending by its industrial progress? When the progress ceases, in what condition are we to expect that it will leave mankind? It must always have been seen, more or less distinctly, by political economists, that the increase of wealth is not boundless: that at the end of what they term the progressive state lies the stationary state, that all progress in wealth is but a postponement of this.”

Why, then, did The Limits to Growth shock in 1972, and why does questioning growth today still provoke incredulity and anger? The report itself became something of an albatross for the green movement. The view entered folklore that it contained predictions about resource use that were alarmist and plain wrong. But, as New Scientist magazine reported recently, it was the critics of the book who turned out to be mistaken.

Here’s a perfect article for the back-to-work-week doldrums:

Millions of Americans have lost control over the basic rhythm of their daily lives. They work too much, eat too quickly, socialize too little, drive and sit in traffic for too many hours, don’t get enough sleep, and feel harried too much of the time. It’s a way of life that undermines basic sources of wealth and well-being—such as strong family and community ties, a deep sense of meaning, and physical health.

Earn less, spend less, emit and degrade less. That’s the formula. The more time a person has, the better his or her quality of life, and the easier it is to live sustainably.

Imagining a world in which jobs take up much less of our time may seem utopian, especially now, when a scarcity mentality dominates the economic conversation. People who are employed often find it difficult to scale back their jobs. Costs of medical care, education, and child care are rising. It may be hard to find new sources of income when U.S. companies have been laying people off at a dizzying rate.

But fewer work hours for people with jobs is a key step toward solving the unemployment crisis—while giving Americans healthier lives. Fewer hours means more jobs are available to people who need them. Living on less pay usually means consuming less, making more of the things one needs at home, and living lighter, whether by design or by accident.

thecommunes:

The Economics of Happiness - Trailer

Economic globalization has led to a massive expansion in the scale and power of big business and banking. It has also worsened nearly every problem we face: fundamentalism and ethnic conflict; climate chaos and species extinction; financial instability and unemployment. There are personal costs too. For the majority of people on the planet, life is becoming increasingly stressful. We have less time for friends and family and we face mounting pressures at work.

The Economics of Happiness describes a world moving simultaneously in two opposing directions. On the one hand, an unholy alliance of governments and big business continues to promote globalization and the consolidation of corporate power. At the same time, people all over the world are resisting those policies, demanding a re-regulation of trade and finance—and, far from the old institutions of power, they’re starting to forge a very different future. Communities are coming together to re-build more human scale, ecological economies based on a new paradigm – an economics of localization.

The overuse and waste of valuable natural resources is threatening to produce a fresh economic crisis, the European Union’s environment chief has warned.

Janez Potočnik, the EU commissioner for the environment, linked the current economic crisis gripping the eurozone with potential future crises driven by price spikes in key resources, including energy and raw materials.

“It’s very difficult to imagine [lifting Europe out of recession] without growth, and very difficult to imagine growth without competitiveness, and very difficult to be competitive without resource efficiency.”

Unless consumers and businesses take action to use resources more efficiently – from energy and water to food and waste, and raw materials such as precious metals – then their increasing scarcity, rising prices and today’s wasteful methods of using them will drive up costs yet further and reduce Europe’s standard of living, Potočnik warned.

He said: “We have simply no choice. We have to use what we have more efficiently, or we will fail to compete. Resource efficiency is a real competitiveness issue for European companies.”

climateadaptation:

Good to see CNN pick up the green cities question.

Everything. I believe that what’s needed is a radical solution, by which I mean from the roots upwards. Our entire political thinking seems to me to be based upon medieval precepts. These things, they didn’t work particularly well five or six hundred years ago. Their slightly modified forms are not adequate at all for the rapidly changing territory of the 21st Century.

We need to overhaul the way that we think about money, we need to overhaul the way that we think about who’s running the show. As an anarchist, I believe that power should be given to the people, to the people whose lives this is actually affecting. It’s no longer good enough to have a group of people who are controlling our destinies. The only reason they have the power is because they control the currency. They have no moral authority and, indeed, they show the opposite of moral authority.

In the sixth issue of Dodgem Logic, I remember doing an article and I was trying to think of possible ways in which our society might be altered for the better. I’m not saying that any of these ways would necessarily be practical but it’s important that we try to think these things through. It’s probably more important now than it ever has been. There is a sense that we don’t have an infinite amount of time to get these things right.

cwnl:

Why Do Women Still Earn Less Than Men?

Imaged Above: August 26, 1970 Women’s Equality Day

By Laura Fitzpatrick

Last year’s tax returns may already be signed, sealed and delivered, but April 20 is the day the average American woman will finally finish earning her 2009 salary — at least, the one she would have received if she were a man. That’s because U.S. women still earned only 77 cents on the male dollar in 2008, according to the latest census statistics. (That number drops to 68% for African-American women and 58% for Latinas.) To highlight the need for change, since 1996 the National Committee on Pay Equity, an advocacy-group umbrella organization, has marked April 20 as Equal Pay Day. There are some signs of progress: the first bill Barack Obama signed into law as President targeted the U.S. pay gap, and the Senate is considering a bill that is meant to address underlying discrimination. But the question remains: Why has it taken so long? Nearly half a century after it became illegal to pay women less on the basis of their sex, why do American women still earn less than men?

The answer depends on whom you ask — and so does the size of the gap. Some say 77% is overly grim. One reason: it doesn’t account for individual differences between workers. Once you control for factors like education and experience, notes Francine Blau — who, along with fellow Cornell economist Lawrence Kahn, published a study on the 1998 wage gap — women’s earnings rise to 81% of men’s. Factor in occupation, industry and whether they belong to a union, and they jump to 91%. That’s partly because women tend to cluster in lower-paying fields. The most-educated swath of women, for example, gravitates toward the teaching and nursing fields. Men with comparable education become business executives, scientists, doctors and lawyers — jobs that pay significantly more.(Read about a new wave of women in Europe’s boardrooms.)

Still, workers don’t choose their industry in a vacuum. “Why do you think [male-dominated industries] are sex-segregated?” says Terry O’Neill, president of the National Organization for Women. “Very often women aren’t welcome there.” Real or perceived, discrimination in certain sectors could discourage women from seeking employment there. A dearth of role models might, in turn, influence the next generation of girls to gravitate toward lower-paying fields, creating an unfortunate cycle.

But industry doesn’t tell the whole story. Women earned less than men in all 20 industries and 25 occupation groups surveyed by the Census Bureau in 2007 — even in fields in which their numbers are overwhelming. Female secretaries, for instance, earn just 83.4% as much as male ones. And those who pick male-dominated fields earn less than men too: female truck drivers, for instance, earn just 76.5% of the weekly pay of their male counterparts. Perhaps the most compelling — and potentially damning — data of all to suggest that gender has an influence comes from a 2008 study in which University of Chicago sociologist Kristen Schilt and NYU economist Matthew Wiswall examined the wage trajectories of people who underwent a sex change. Their results: even when controlling for factors like education, men who transitioned to women earned, on average, 32% less after the surgery. Women who became men, on the other hand, earned 1.5% more.

Skeptics who deem the 77% estimate too optimistic also note that the figure only counts women working full-time (35 hours a week or more, for the full year) and doesn’t account for the fact that women are far more likely to take time off to start a family or work part-time while rearing one. Over a period of 15 years, according to a 2004 study by the Institute for Women’s Policy Research (IWPR), a full 52% of women in the prime earning age range of 26 to 59 go through at least one full calendar year earning nothing at all, compared with just 16% of men. Those choices make a difference: over that span, female workers earn just 38% of what men make — making the wage gap twice as large as the census figure. (And despite the earnings premium that comes with greater education, women with bachelor’s degrees earn less over 15 years than men with a high school diploma or less, according to the IWPR study.)(Read 1982 cover story “How Long Till Equality?”)

Yet no matter how you interpret the numbers, there are a few stubborn percentage points that can’t be explained away. Economists and advocates alike speculate that these are the products of slippery factors like discrimination — conscious or not. A 2000 study, for instance, famously found that after symphony orchestras introduced blind auditions, requiring musicians to perform behind a screen, women became more likely to get the gig. “I think discrimination has declined,” says Cornell’s Blau. “But I’m not yet seeing or believing that it’s been completely eliminated.”

Ensuring an end to discrimination would benefit more than just women, as advocates who resist the characterization of equal pay as a zero-sum game are quick to point out. When Iowa instituted wage adjustments to combat pay discrimination, men accounted for 41% of the beneficiaries. And considering that nearly 40% of American mothers are the primary breadwinner in their households, America’s children would benefit as well. Women’s wages have increased just half a penny on the dollar for the past four decades. How much longer can it possibly take for equality to arrive?

(via ikenbot)

It remains to be seen whether the Occupy Wall Street protests will change America’s direction. Yet the protests have already elicited a remarkably hysterical reaction from Wall Street, the super-rich in general, and politicians and pundits who reliably serve the interests of the wealthiest hundredth of a percent.

And this reaction tells you something important — namely, that the extremists threatening American values are what F.D.R. called “economic royalists,” not the people camping in Zuccotti Park.

Consider first how Republican politicians have portrayed the modest-sized if growing demonstrations, which have involved some confrontations with the police — confrontations that seem to have involved a lot of police overreaction — but nothing one could call a riot. And there has in fact been nothing so far to match the behavior of Tea Party crowds in the summer of 2009.

Nonetheless, Eric Cantor, the House majority leader, has denounced “mobs” and “the pitting of Americans against Americans.” The G.O.P. presidential candidates have weighed in, with Mitt Romney accusing the protesters of waging “class warfare,” while Herman Cain calls them “anti-American.” My favorite, however, is Senator Rand Paul, who for some reason worries that the protesters will start seizing iPads, because they believe rich people don’t deserve to have them.

Michael Bloomberg, New York’s mayor and a financial-industry titan in his own right, was a bit more moderate, but still accused the protesters of trying to “take the jobs away from people working in this city,” a statement that bears no resemblance to the movement’s actual goals.

And if you were listening to talking heads on CNBC, you learned that the protesters “let their freak flags fly,” and are “aligned with Lenin.”

The way to understand all of this is to realize that it’s part of a broader syndrome, in which wealthy Americans who benefit hugely from a system rigged in their favor react with hysteria to anyone who points out just how rigged the system is.

Last year, you may recall, a number of financial-industry barons went wild over very mild criticism from President Obama. They denounced Mr. Obama as being almost a socialist for endorsing the so-called Volcker rule, which would simply prohibit banks backed by federal guarantees from engaging in risky speculation. And as for their reaction to proposals to close a loophole that lets some of them pay remarkably low taxes — well, Stephen Schwarzman, chairman of the Blackstone Group, compared it to Hitler’s invasion of Poland.

And then there’s the campaign of character assassination against Elizabeth Warren, the financial reformer now running for the Senate in Massachusetts. Not long ago a YouTube video of Ms. Warren making an eloquent, down-to-earth case for taxes on the rich went viral. Nothing about what she said was radical — it was no more than a modern riff on Oliver Wendell Holmes’s famous dictum that “Taxes are what we pay for civilized society.”

But listening to the reliable defenders of the wealthy, you’d think that Ms. Warren was the second coming of Leon Trotsky. George Will declared that she has a “collectivist agenda,” that she believes that “individualism is a chimera.” And Rush Limbaugh called her “a parasite who hates her host. Willing to destroy the host while she sucks the life out of it.”

What’s going on here? The answer, surely, is that Wall Street’s Masters of the Universe realize, deep down, how morally indefensible their position is. They’re not John Galt. They’re people who got rich by peddling complex financial schemes that, far from delivering clear benefits to the American people, helped push us into a crisis whose aftereffects continue to blight the lives of tens of millions of their fellow citizens.