Prosperity without Growth

I have been off my blog for a couple of weeks whilst I hit a deadline to finish the manuscript of my next book. That is now with the publisher so I have time to withdraw from my shell and engage with the outside world again, spend time with the family and read what others are writing.

The paperback version of Tim Jackson’s book, Prosperity without Growth: Economics for a Finite Planet landed on my doorstep last week for me to review. This is well timed and I am looking forward to reading again Tim’s ideas. His original report for the SDC (under a similar title) raised a number of important questions about the way we run the economy and the priorities that are set. These are very important questions that need to be debated to discuss how the management of society could be different.

The first stage is to question what we have. Anyone who believes that the economic system is perfect has been living on another planet for the last few years. For those who believe that it is the best system available in an imperfect world, this is a valid viewpoint but at best lacks ambition and at worst is plain wrong.

The rescue of the economy following the financial crisis has been a process of papering over the cracks and restoring confidence. If an estate agent was selling the world economy, the financial edifice would look impressive, large and gleaming with a new coat of paint but buyers should take care to examine the foundations and check what lies behind the new wallpaper. A qualified surveyor would need to be employed to do a full structural survey, who may report that the house appears to be in good order but without access to the basement or the authority to peel back the wallpaper there is no way of being sure. When I talk with economists I get a range of views. I met one in Helsinki who believed that the crisis was now behind and the world economy safe. If you have a role in selling the house, then nothing is wrong, but if you an expert impartial observer you would be very wary of claiming that the crisis is past.

Prosperity without Growth raises important questions; we need to peel back the confidence building statements of central bankers and mainstream economists to look for the answers to how the economy can support a sustainable society.