Economy In a Full World Article
By: Herman E Daly and Richard A. Easterlin
1. Growth of an economy is widely believed to be the solution for all economic problems such a poverty.
2. Humans aim for endless growth which directly contrasts with their need for a more healthy and sustainable way of living.
3. John Stuart Mill (1848)- believed in sustainability "Of The Stationary State"
4. Economists believe that sustainability is pointless and focus mainly on the growth of the economy despite consequences.
5. In able to have some control humans must be able to reach equilibrium when it comes to the birth and death rates.
6. To balance costs; the activity of humans must be weighed between its benefits and consequences.
7. Macroeconomics = Study of economy as a whole.
8. GDP = Sum of natural and man-made capital.
9, Satisfaction of wants= level of well being of population.
10. Cap-and-Trade System= free market policy vs government policy
11. U.S. faces demographic transition to non-growing population; due to this, there will be more retirees that there are workers.
12. Free trade is not possible in world where sustainable and unsustainable economy is present simultaneously.
13. Taxes must be adjusted depending on how the economy will thrive.
14. A sustainable economy will probably not maintain full employment.
15. There is a belief that human insatiability equates happiness, hence happiness is a reason for the unsustainable growth of economy.
16. Psychologists suggest that happiness has a limit that it corresponds to human consumption; at some point happiness flat-lines.
Summary:
Economy makes the world go round. It is because of economy that poverty, GDP, mass production, trade, and depletion of resources occur. Money is root for the need for growth in economy. The whole subject is so much more complex than that however. It is the population, the variety of said population, and even the distribution of money throughout this population is a key to understanding economy. The employment, of a community also relates to the taxes that are collected from the population as a whole; in order to provide for the retirees. Furthermore, this whole system expands into a worldwide connection of each nation. Where the relative wealth of a nation is correlated to the amount of money the country has and the debts in which is has taken. It is blamed on happiness, that pollution occurs; the greed that humans harbors are so beyond saving that they are on a path to destruction.
Opinion:
The subject that caught my attention most, is the correlation of happiness to the need for economic growth. The insatiability of human consumption being the root of the problem; and although this is correct people assume that happiness is synonymous to satiability. Both concepts are relative to the individual however; happiness may come from endless consumption of goods, or it could be achieved through a simple and sustainable way. Psychologists admit that money is somewhat correlated to the idea of happiness, however it is also realized that there is a limit to wealth to happiness correlation. That there is a line in which happiness plateaus despite the wealth of person. Happiness can be achieved without more materialistic wants. Humans cannot blame their destructive behavior to an emotion, or a need to be happy. It is their own greed that has lead us to our own demise.
2. Humans aim for endless growth which directly contrasts with their need for a more healthy and sustainable way of living.
3. John Stuart Mill (1848)- believed in sustainability "Of The Stationary State"
4. Economists believe that sustainability is pointless and focus mainly on the growth of the economy despite consequences.
5. In able to have some control humans must be able to reach equilibrium when it comes to the birth and death rates.
6. To balance costs; the activity of humans must be weighed between its benefits and consequences.
7. Macroeconomics = Study of economy as a whole.
8. GDP = Sum of natural and man-made capital.
9, Satisfaction of wants= level of well being of population.
10. Cap-and-Trade System= free market policy vs government policy
11. U.S. faces demographic transition to non-growing population; due to this, there will be more retirees that there are workers.
12. Free trade is not possible in world where sustainable and unsustainable economy is present simultaneously.
13. Taxes must be adjusted depending on how the economy will thrive.
14. A sustainable economy will probably not maintain full employment.
15. There is a belief that human insatiability equates happiness, hence happiness is a reason for the unsustainable growth of economy.
16. Psychologists suggest that happiness has a limit that it corresponds to human consumption; at some point happiness flat-lines.
Summary:
Economy makes the world go round. It is because of economy that poverty, GDP, mass production, trade, and depletion of resources occur. Money is root for the need for growth in economy. The whole subject is so much more complex than that however. It is the population, the variety of said population, and even the distribution of money throughout this population is a key to understanding economy. The employment, of a community also relates to the taxes that are collected from the population as a whole; in order to provide for the retirees. Furthermore, this whole system expands into a worldwide connection of each nation. Where the relative wealth of a nation is correlated to the amount of money the country has and the debts in which is has taken. It is blamed on happiness, that pollution occurs; the greed that humans harbors are so beyond saving that they are on a path to destruction.
Opinion:
The subject that caught my attention most, is the correlation of happiness to the need for economic growth. The insatiability of human consumption being the root of the problem; and although this is correct people assume that happiness is synonymous to satiability. Both concepts are relative to the individual however; happiness may come from endless consumption of goods, or it could be achieved through a simple and sustainable way. Psychologists admit that money is somewhat correlated to the idea of happiness, however it is also realized that there is a limit to wealth to happiness correlation. That there is a line in which happiness plateaus despite the wealth of person. Happiness can be achieved without more materialistic wants. Humans cannot blame their destructive behavior to an emotion, or a need to be happy. It is their own greed that has lead us to our own demise.