Category Archives: Economics

The New – and Improved — Economy

The core of EcoOptimism is that, contrary to popular and political belief, we have solutions that can simultaneously address economic and ecological problems – and, what’s more, land us in a better place than we started. If you’re into biomimicry, think of these solutions as our attempts at symbiosis.

So when a couple of items lauding examples of symbiotic solutions landed here, it seemed more than appropriate to conjure an EcoOptimism post out of them.

EconomicsGraph

illustration: Lori Greenberg/Bergworks

 

 

 

 

 

 

 

 

 

From The Nation, an article titled “It’s the New Economy, Stupid” explains “What many progressive advocates are calling a “new economy” framework emphasizes not just new jobs but also new policies that simultaneously create a fair economy, a clean environment and a strong democracy.” In the new economy, conventional production and consumption are rethought in favor of alternatives that result in goods rather than “bads,” satisfying jobs with futures, and lifestyles that allow us to flourish.

win-win-smAn example: that article in The Nation refers to a Tellus Institute study that concluded “the United States could create more than 2 million jobs by 2030 by transforming our waste management from incinerators and landfills to recycling and composting. Many of the jobs could shift from large private corporations to municipal unions. [T]his shift would tackle the environment, equity and racial justice all in one shot.” A no-brainer, no?

Another example arrived as an op-ed in The New York Times this week: In “Going Beyond Carbon Dioxide,” the authors address a serious roadblock in solving global warming: CO2 is persistent and reversing its impact is often compared to stopping a train or a cargo freighter. “[E]ven if we are able to [reduce CO2 emissions by as much as half by 2050] over the next 40 years, we would not slow the rate of warming enough by midcentury to moderate consequences like rising sea levels, the release of methane and carbon dioxide from melting arctic permafrost, and a rise in extreme weather.”

Pretty pessimistic stuff. But, they write, there is a viable short-term alternative:

We can slow this warming quickly by cutting emissions of four other climate pollutants: black carbon, a component of soot; methane, the main component of natural gas; lower-level ozone, a main ingredient of urban smog; and hydrofluorocarbons, or HFCs, which are used as coolants. They account for as much as 40 percent of current warming.

Unlike carbon dioxide, these pollutants are short-lived in the atmosphere. If we stop emitting them, they will disappear in a matter of weeks to a few decades. We have technologies to do this, and, in many cases, laws and institutions to support these cuts.

The article continues, pointing out both the feasibility of these actions and the very positive environmental results.  But then the authors go on to point out that, in addition to halving the rate of global warming, there are multiple other benefits such as preventing “an estimated two to four million deaths from air pollution and avoid[ing] billions of dollars of crop loss annually….Many of these actions would improve public health and crop yields in the countries making the reductions, and perhaps encourage them to go further.”

There is a risk, of course, in that pursuing this approach we might fool ourselves into rationalizing that we can avoid dealing with CO2, but that’s not a valid reason to skip what appears to be a clearly win-win program.

Why aren’t we already on these paths? The answer brings us back to the previous EcoOptimism post. As The Nation authors comment “For this movement to grow, it needs three things: a more compelling story of the new economy, more support for local pilot projects and strategic wins at the national level.  When it comes to building a narrative, a more attractive new-economy vision has to be constructed….” Which is the point I was making when I wrote in a recent post “Now we need to make [this vision] concrete and present it in a form people can relate to in order to convince an understandably skeptical populace.  This requires the merging of policy wonk-dom with the visioning and communicating designers can provide (with perhaps some added oomph from the PR and advertising worlds).”

So maybe I don’t really need to quote myself, particularly when there seems to be a growing clamor – and ample quotes from others — along the same lines. When the dust settles after the end of semester grading crunch, I hope to “relax” with a few more books including Gus Speth’s America the Possible: Manifesto for a New Economy and Alex Steffen’s Carbon Zero: Imagining Cities That Can Save the Planet. I’m hoping the backlog on my reading list represents a sort of critical mass portending the inevitability of a new economy.

Here Comes the Stuff

Don’t buy me any gifts for the holiday season.

Not that you were planning to (I assume!), but that’s not the point. I’m “consumed,” as it were, by the quantity of things surrounding me and by emotions like garbage guilt. I look around at most of the stuff in store windows and catalogs, and realize that, not only do I not need most of it, I don’t even want a lot of it. Our place is full. If anything, we need to shed possessions. Clothes we rarely wear. Books we rarely read. (Why is it so hard to get rid of books?) Sentimental things we’ve been given but don’t know where to put. Unthinking things we’ve been given and would rather not find a place for.

I’m happy that we have no hamburger-patty-maker type kitchen appliances, and not only because we don’t have anywhere to store them.

When I look at those things, I can’t help it: I see all the materials and energy that went into making them, and I see the space indefinitely occupied in the landfills that they’ll end up in, often sooner rather than later. That’s what I mean by garbage guilt.

Yeah, I know that’s no way to look at a festive season, or at the well wishes and good intentions of those who give gifts. Bah humbug, Grinch and all that. But really I’m happy with – and prefer to have – those well wishes of my relatives and friends, just without the material encumbrances. Let’s have a meal or go to a movie together. Or send a donation to a charity.

Plus I’m picky and hard to buy for, but that’s another topic entirely.

What if Christmas, he thought, doesn’t come from a store. What if Christmas, perhaps, means a little bit more. ~Dr. Seuss

 

 

 

Our apartment is decent sized by NYC standards, though tiny, I’m sure, compared to many a suburban home. It’s certainly much larger than Graham Hill’s Life Edited apartment ten blocks away or many of the other micro digs featured these days in TreeHugger and Inhabitat. But it’s overflowing with stuff, as is our storage space crosstown. Factor in that I’d much rather be a minimalist, and it really doesn’t (or does!) add up.

And this is without venturing into the even more guilt ridden point that there are others who need things far more than I do. So I don’t think I’m being a killjoy in dampening the consumer wave.  (You know, the one that’s supposed to rescue the economy.) What’s the point in having (or being given) something you don’t need – or worse, don’t like? Actually, I think the concept is quite positive.

When you start looking at stuff this way, it quickly becomes a weight on your shoulders. I don’t want go all Buddhist or something on you, but I truly think I’d be happier with fewer material things. I’m not alone in that either. On Grist.org this week, a post is titled “Married father of two seeks Best Christmas Ever. No presents allowed.” But Greg (the author of the post) and I are apparently far from the norm. His idea was deemed so unusual that it warranted not one, but two, film crews and interviews.

Like Greg, I grew up with a mountain of gifts, piled in our case beneath a “Hannukah bush.” (In my teen years, we developed early eco traditions of using the Sunday “Funnies” for wrapping paper and buying live trees, which I would lug out the patio door and plant in the back yard on New Year’s Day – having dug the hole at Thanksgiving.) I remember not being able to sleep on the Christmas Eve when I strongly suspected there was a train set awaiting me on sawhorses in the basement. For theoretically Jewish kids, we made out great. Of course the holidays should be joyous for kids and gifts are part of that. But let it be things with meaning, not plastic throw-aways. I loved that train set and spent many a weekend building elaborate landscapes for it. There were many other gifts, though, whose longevity could be counted in hours.

Fortunately I don’t work in a company where we have Secret Santas. If I did, would it be acceptable for the wrapping to enclose a card acknowledging a charity donation? Or perhaps a gift certificate to a local business? I’d be plenty happy receiving either.

However, if you’re still unconvinced, there are of course things I covet. (That enlightened I’m not.)  But they tend to be expensive and electronic, so I’ll settle for a fun dinner at a local joint.

Less is More, More or Less

Thanksgiving, the celebration of bounty, seemed a completely appropriate time to contemplate the corollary concept of enough. Hence one of my tasks for the weekend (why do I always think a day or two off, or even a long plane flight, will give me the time to catch up on everything?) was to read the advance copy of Enough Is Enough sent me by co-author Rob Dietz. A bit overoptimistic I was. I’ll blame the lingering L-tryptophan effect. But I’ve only missed the goal by a bit.

Dietz is the executive director of an organization called CASSE or the Center for the Advancement of the Steady State Economy, a mouthful as large as the (first) slice of leftover pumpkin pie I had for breakfast on several of the days following the feast. “Enough Is Enough” rolls off the tongue much more easily (than CASSE, not pumpkin pie), and the strong, memorable title makes me almost wish CASSE would change its name to accompany the book.

The basic tenet of the steady state economy (or SSE) is an observation that makes complete sense: you can’t have infinite growth in a finite system. Unfortunately, conventional economics – perhaps in an attempt to defy its characterization as the dismal science – says otherwise. Its faith in unending growth portrays it as both possible and desirable.

EcoOptimism, though based (obviously) in optimism, doesn’t subscribe to this delusional belief in the virtues of growth. In another post, I’ll discuss how that self-serving faith is actually more akin – as faith-based ideas tend to be – to a religion than it is to a science. So much so that, in attempting to escape the “dismal science” moniker by being less dismal, conventional economics may have instead lost its reasoned science aspect.

What’s in a name?

Part of the politically untouchable faith in growth derives from the positive nature of the word growth. How could growth possibly be bad or undesirable? And, even after proving that it is, finding an appealing word or phrase to convey that idea is a difficult task, yielding less than positive terms. Ungrowth? Uh uh. Degrowth? No better. Is the opposite of growth diminishment? Nothing appealing in that. Another suggested term, post-growth, gets warmer, but still doesn’t quite make the cut for me.

And so we get to steady state economics. Though it ain’t exactly catchy ( as noted above) SSE at least doesn’t succumb to easy connotations of negativism and survives the first round of sound bite tests. Steadiness, especially when compared to the booms and busts of recent history, has much to be said for itself.

Going Steady

But the goal of SSE is not so much to steady the rough ride of economic cycles as it is the creation of a path for continuing human growth within the constraints of an amazing yet finite planet. And it’s also more than (merely) achieving sustainability. It is the decoupling of economic growth from human flourishing. It is the enabling not just of a future, but of a positive future.

We already know that happiness (yes, I know that’s a mushy subjective quality, but there actually are ways to define and measure it) does not correlate with economic growth, at least not in the long run. In the richer nations (the “developed” world), where essential needs have largely been met, the acquisition of more material things does not lead to happier or more fulfilled lives. And acquiring things is, after all, an integral part of material growth and its measure, the appropriately named Gross Domestic Product. But even with this knowledge (which is not nearly widely enough known), how is the iconoclastic case against growth made? And accepted?

I have nearly the same image in my book, Sustainable Design: A Critical Guide, but this is from Enough Is Enough

 

 

 

 

 

 

 

 

 

 

 

There’s been a plethora of books on this topic of late. I’ve written about some of them before: Prosperity Without Growth, The End of Growth, Plenitude, eearth, et. al. But in virtually every case, what’s been missing from the iron-clad arguments has been an accompanying roadmap. We have a general idea of where we want to go, but no idea – especially not a convincing one – how to get there.

Indeed, this shortcoming is a major part of the purpose behind EcoOptimism. Along with the lack of concrete steps, I’ve been positing that we need verbal descriptions and perhaps graphic illustrations (I must still be in a Thanksgiving state of mind because that made me think of the “twenty seven eight-by-ten color glossy pictures with the circles and arrows and the paragraph on the back of each one” from Arlo Guthrie’s Alice’s Restaurant — but I digress) depicting what our un/re/de/post-growth future will look like.

Happily, Dietz and co-author Dan O’Neill have brought us much closer to answering the how-the-hell-do-we-get-there question. Each chapter in the section “Strategies of Enough” as well as most of the chapters in the third section “Advancing the Economy of Enough” begin by asking “What Are We Doing?” and proceed to “What Could We Do Instead?” Then they move to the part I devoured each time: “Where Do We Go From Here?”

Dietz and O’Neill are, of course, thoroughly familiar with the concepts of a Steady State Economy. But, they write, “we had been asking ourselves for some time how a steady-state economy would work in practice.” What are “the policies and transition strategies that would turn [a SSE] vision into a reality?” Those questions, as it happens, are the same ones I’ve been asking since I started focusing on the “New Economy.”

They’ve done a terrific job on the second question. First they demolish the conventional argument that growth is the solution to poverty, poor education and unrepresentative rule as well as pollution (the argument proffered by groups like the WTO and mainstreamed by Bjorn Lomberg’s The Skeptical Environmentalist). Toss out the convenient and misleading metaphor “a rising tide lifts all boats.” Our economic history strongly declares otherwise.

Responding to the Econ 101 tenet “Market prices give no reason to believe that natural resources are a limit to economic growth,” they almost literally scream “This statement may be true, but it reveals more about the failure of markets than the absence of limits!” This is the core of an argument many of us have been making in various forms for years: a “free” market can work only if everything is priced accurately. And our current markets, which consider almost every resource and service provided by nature to be free, are far from that point. “Prices often fail to capture the effect of resource depletion, waste generation, and loss of ecosystem services. As a result, the market sends improper signals—if it sends any signal at all—regarding the sustainability of throughput levels. We need to eliminate this market failure….”

What’s Enough?

Making economic growth the measure and the goal does humanity a huge disservice. Growth, in the gross unqualified version that we currently reflexively strive for, is a false god asking us to sacrifice everything (our lives, our planet) in search of a future nirvana that cannot possibly be the result. The problem, putting aside such relevant constraints as physics and, yes, economics, is that we’ve set our goal on the wrong sight. “More” is not only unachievable; it is undesirable. And the opposite of more is not less; it’s enough – provided that what we achieve enough of is what we in fact need to grow qualitatively. This becomes a two-part question: first, what is “enough,” meaning what sates us and leaves us better off than we started and, second, how do we get to that state?

We can continue the overly obvious Thanksgiving analogy here. For most of us, the quantity of the food leaves us with that content but overstuffed lagginess and perhaps the feeling that we overdid it. We certainly could live without it, though most of us would choose not to. Why? Because we enjoy the ritual, the company … and the food. What, more precisely, is it that makes the holiday so valued to so many? It’s not the amounts of food that we often wish we had exercised a bit more willpower to resist. It’s the circumstance, the associations and the experience (both social and sensorial), not the amount of food. In a crude way, this sums up the difference between the economy of growth and the economy of enough. Economic growth, after a point, does not translate to improved well-being. And after that point – the point at which basic life needs have been met — our economic and social goals should change course.

This does not by any means signify stagnation, which is perhaps the main problem with the term steady state – it’s vulnerable to being misinterpreted as a call to sacrifice. In reality, it’s the opposite of sacrifice; it’s finding the true value and measure of progress. As Dietz and O’Neil more succinctly put it: “the economy can develop qualitatively without growing quantitatively.”

It’s People!

Environmentalists all know that our problems stem from the combination of too much consumption (or rather, unnecessary and inefficient consumption primarily by people in the rich nations) and too many people (who, increasingly, are in the poorer nations). And therefore any real solution has to address both problems.  While the first part is certainly key, the second part – population growth – is the elephant in the room. It’s an incredibly delicate and laden topic. To its credit, Enough Is Enough doesn’t skip over it, as most such discussions do. “We need smaller footprints but,” they emphasize, “we also need fewer feet.”

The authors underscore the point that the number of unintentional pregnancies in the world each year (80 million) is equivalent to the annual growth of the human population. This means we don’t need to dive into heavy-handed intrusive programs like the Chinese one-child-per-family rule. We can achieve steady population through education and voluntary birth control.

The Role of Wall Street

When I discuss ecodesign in my classes, I emphasize that there are two ways to approach changing the environmental impact of a product. One is the “tweak,” which involves one or more relatively small and incremental changes to the design. The other is the “innovation,” which demands rethinking the problem (often by rephrasing the question) to find alternative ways of achieving the result the product provides. Often this leads to what has come to be called disruptive technology, a fancy phrase for a new way to do something that reduces the old to history. Think Internet versus encyclopedias. Or 3D printing replacing mass production.

I found myself categorizing the suggestions within Enough Is Enough the same way. Many of their proposals required minor alterations to our current ways of doing things. Others, though, are more like the “square one” approach. For instance, in the chapter “Enough Debt,” they propose some fundamental changes to how the financial world operates, ranging from the technical (requiring reserves on loans to be 100%) to the structural (decreasing the size and power of financial institution below the “too big to fail” level and – here comes the part that will elicit protests of socialism – democratizing the means of production).

Instead of hailing and idolizing the financial arena as the source of investment and growth as we currently do, the authors say we should be viewing it as a cost. “The fewer resources needed to accomplish this service [helping money to flow where it’s needed in the economy], the better off society is. So we should aim to minimize the cost represented by the financial sector—it should account for as small a percentage of total economic activity as possible.” We’ve come to see the financial world as an end in itself (how’s the market doing today?), forgetting in the process that its purpose is to be a means to the improvement of our lives. “Instead of focusing on using money to make more money, financiers should be focusing on serving a stable economy, an equitable society, and a healthy biosphere.”

Enough is (Almost) Enough

Enough Is Enough does an admirable job of making the off-putting topic of SSE much more approachable and enticing, but (ironically) leaves me still wanting more. The authors fully understand that “for people to embrace the concept of a steady-state economy, they need to understand how it would work and why it would be preferable to what they’ve become accustomed to.” They’ve brought us much closer to this point, but I came away still wanting to know what it will feel like and look like and how we will experience it.

This shortcoming – and I’m nitpicking through an exceptional book – strengthens the underlying need for what I see as a primary mission of the EcoOptimism blog: providing that visceral taste of a positive future. Enough Is Enough lays the policy groundwork. Now we need to make it concrete and present it in a form people can relate to in order to convince an understandably skeptical populace.  This requires the merging of policy wonk-dom with the visioning and communicating designers can provide (with perhaps some added oomph from the PR and advertising worlds).

Dietz and O’Neill write “An enlightened transformation to a steady-state economy is a profoundly hopeful prospect.” Not one of doom and gloom or involving sacrificing the “American way of life.” The overriding need is to develop and successfully present this thoroughly desirable future so that we will pursue it, not because we have to but because we want to. Enough Is Enough is a major step on that path.

Enough Is Enough will be released by Berrett-Koehler Publishers on January 7, 2013

 

Sandy May Be the Tipping Point, But We Really Didn’t Need One

Which are we more likely to believe: fact or fiction? There’s been much written about the “fact” that many Americans don’t believe in “facts.” Or to put it another way, what defines a fact? When does a theory become a scientific consensus, and is that different from a fact?

The point of relevance, of course, is Superstorm Sandy.  The “Frankenstorm” scenario that just transformed from run-of-the-mill screenplay to reality – that is, from fiction to fact — is not that much different from any number of eco-disaster movies: global warming-fueled hurricane converges with winter storm to devastate the NY region. It even has a subplot, what with the election next week and pundits wondering how that will be affected. (Did Christie stick it to Romney by complimenting Obama?)

We’ve been warned by a tsunami of dramatic scenarios, ranging from the mildly plausible The Day After Tomorrow – yes, there actually is some theoretical basis in its explanation if not in its timeline — to the sneakily messaged Wall-E, and from there to made- for-TV dreck that doesn’t even qualify for B-movie status. (Can I please have back the late nights I’ve lost hoping that some SyFy channel rerun will actually give me something to write about. Oh wait, they just did.)

 

 

 

 

 

 

 

 

 

 

I’m fascinated by post-apocalyptic visions and have lately been treated to a (genetically modified?) harvest of TV series. More on that in another post. What we’re pondering here is what it will take to convince us, as a country, that climate disruption is real, and that it poses “a real and present danger” (stealing from yet another movie). It’s easy to understand why fictional tales haven’t swayed the skeptics. They are, after all, fiction. But real life is another story. When the real thing occurs, we rationalize that any individual weather event does not serve as proof of a pattern, let alone a pattern that is induced by us. But when does the pattern add up to a new reality? At the Institute for Policy Studies, Daphne Wysham writes

[W]e are fooling ourselves, again and again, just as our children do every Halloween. This Frankenstorm, can we stop fooling ourselves? Our planet desperately needs us to act like adults and get beyond [just] responding to one storm after another, as though each one were a unique shock, and not related to an overall climate crisis of enormous proportions.

Will we see the pattern through the politics? If not, how many more puzzle pieces will be needed?

Or, if you prefer the more “rational” economic argument, when does the cost of climate-induced damage exceed the cost of action to curtail further climate disruption? (And – we have to ask ourselves – how does the cost of adaptation and resilience figure in?) A barely three week old report from the insurance giant Munich Re says the US losses from weather catastrophes from 1980 to 2011 amounted to more than $1 trillion. And 30,000 deaths. I don’t have more numbers handy (I really need an intern), but I strongly suspect that if we added up the costs of disasters that were caused or exacerbated by fossil fuel related activities, they would be greater than the costs of switching to alternative energy sources. And if they aren’t, well then, it doesn’t take much imagination to extrapolate that they will be in the near future.

The number of climate-related disasters has increased greatly while the number of other natural disasters has remained fairly constant. (source: UNEP, http://www.grida.no/graphicslib/detail/number-of-disasters-per-year_1408)

 

 

 

 

 

 

 

 

 

 

So, as I write this from my temporary Manhattan-refugee location in Brooklyn (with much thanks to my wife’s brother and sister-in-law), I come back to the point of EcoOptimism. If you need to rationalize the environmental steps advocated by the “alarmists,” if in the term scientific consensus you hear only the word con, then forget about the stick for a moment and focus on the carrot. The steps to a carbon neutral existence will also improve our lives. I’m not talking about the idea of sustainability, which is merely ensuring that humanity can continue to exist (as if that isn’t a basic enough goal), but the idea that we also will be better off after buying the insurance. We’re talking about tangibles like better health as well as intangibles such as spending less time and money keeping apace with the treadmill and more time to spend on things and activities that really make us better people.

Most times when we buy insurance, it’s just to protect ourselves from exposure to future costs. Buy fire insurance and, if your house burns down, the insurance buys you another one. But environmental “insurance,” whether it be in the form of a carbon tax or something else, is not merely money thrown at a potential problem to cover your potential losses. (Never mind that no amount of insurance can buy us another planet.)  It’s money that is directed against an all but certain eventuality and at the same time has the ability to improve the value of the asset you’re protecting: your life. That has to be the deal of a “lifetime.”

The Growth Schism: Could a Sound Bite Save the World?

This being election season (good thing it’s also the season for apples – I’m partial to Macouns — and pumpkin pie or I’d have to call it my least favorite season), let’s pose this topic with a relevant question. Suppose you’re a political candidate with both an economic and an environmental agenda – and want to not just make a statement but have a real chance at election. Your environmental background tells you that growth, as in economic growth, is a huge issue. You understand that continuous growth on a finite planet is a physical impossibility that will inevitably lead to a human disaster. (So much for EcoOptimism, or so it would seem.)

But you also know that growth, because it ostensibly leads to much needed jobs, is a political given. That’s why you’ll never hear a candidate come out against growth.

Is this dilemma resolvable?

If that candidate has studied growth as taught in conventional economic circles, she’s been told that growth is the solution to virtually all economic problems and that, because of the way the “free market” works, resources are in practice not finite, that pricing factors will always lead to substitutes and alternatives.

On the other hand, if she has studied environmental economics, she’ll be aware that not only does the market not have the ability to break the laws of physics, but perhaps more relevantly, growth does not solve all economic problems and, in fact, does not even improve lives.

We’ve known this for a while. Yes, growth is indeed necessary and a positive force – up to a point. When the members of a society don’t have adequate shelter and sustenance, growth is critical to achieving those essential needs. But there’s a diminishing returns curve here and, after a point, growth no longer makes us happier. I thought this observation was so important that I found a way to include it in my book on sustainable design despite it not being – directly at least – about design.

 

 

 

 

 

You wouldn’t know it from political discussions (see dilemma above), but there has been a slew of research and books on this topic of late. I mentioned a few of them in an earlier post.  Most of them are discussing growth in the context of developed countries, where fundamental human needs, for the most part, have been met. Assuming one accepts the premise that growth is necessary until that point has been reached, a question that follows is: what is that point?

We may have a partial answer in the form of research by a team of economists from UCLA and USC. Summarized in a recent New York Times op-ed by Richard Easterlin, a member of that team, they found that a quadrupling of per capita consumption in China over the past 20 years was accompanied by a decrease in life satisfaction.

Image source: icis.com

 

 

 

 

 

 

 

 

 

Of course, there are several possible reasons for this and it’s not correct to automatically assume that the unhappiness is due to growth and increased consumption. Easterlin sees it in terms of socio-economic causes. “In China,” he writes, “life satisfaction declined as output and consumption rapidly expanded. The difference shows that economic growth is not enough; job security and a social safety net are also critical to people’s happiness.”

However, a mountain of evidence shows that, at least in developed regions and countries like the U.S. and Europe, growth is not the panacea that most politicians believe it is. Or perhaps they do realize this, but know that it is just too complicated an idea to explain in sound bites. Coming out against economic growth would leave any candidate vulnerable to easy pickins.

Image source: Adbusters

Which brings us back to the superficial tactic of finding a way to pose the idea in a positive light. If “no growth” or “antigrowth” are non-starters for a political platform, well we need to find a way to recast the idea in a way that illustrates the reasons we should, in fact, desire the end of growth. As with several previous EcoOptimism posts, we’re drawn back to the issue of communication. In this case, the problem is how to communicate that growth – such a positive sounding goal – is not actually good. Or smart. Or even possible, at least not in any version of our finite planet.

I hate that it comes down to spin, to PR essentially. But we know we can’t promote “no growth” as a goal. The snappy retorts are just too easy. This one took me less time to come up with than it takes for a conservative to spot voter fraud: “No growth, no way.”

“Post-growth” has been suggested by a number of people and it has potential. I fear, though, that it begins to evoke post-apocalyptic associations. I’ve pondered “regrowth,” but I think it still requires too much explaining. It may be that we need a term that sidesteps the problem by not evoking growth at all. Juliet Schor’s Plenitude is one attempt; however it doesn’t make the cut in terms of being popularly self-explanatory either.

So we do indeed have a dilemma. It’s a critical one for EcoOptimism: how to make a counterintuitive idea appealing? Facts and figures we have aplenty. It’s the sound bite we’re missing.

News we like

Focusing on the optimism aspect of our blog here, my usual late night tour of the interwebs caught a slew of headlines that left me in a better mood than I started – indications that the business as usual status quo is being questioned, sometimes in high places, and principles of EcoOptimism are getting more attention. Here, for your end of the week boost, are a few of them.

From The Economist, a realization that growth unfettered is not necessarily good:

“A new form of radical centrist politics is needed to tackle inequality without hurting economic growth”

Some quotes (taken out of order):

In America the share of national income going to the top 0.01% (some 16,000 families) has risen from just over 1% in 1980 to almost 5% now—an even bigger slice than the top 0.01% got in the Gilded Age.

[I]nequality has reached a stage where it can be inefficient and bad for growth.               

Even the sort of inequality produced by meritocracy can hurt growth. If income gaps get wide enough, they can lead to less equality of opportunity, especially in education.

Here’s the positive take-away:

The priority should be a Rooseveltian attack on monopolies and vested interests, be they state-owned enterprises in China or big banks on Wall Street.

 

From Grist.com:

“The greener the industry, the higher the job-growth rate”

 

 

 

 

 

 

 

According to a new study from the Economic Policy Institute, “Industries that support a higher number of “green” workers who are making goods and services more environmentally friendly have experienced a higher rate of growth over the last decade than industries with fewer green jobs.”

The 2010 result: “3.1 million green jobs nationwide in renewable energy, water management, recycling, and various positions that help improve the efficiency and environmental footprint of a company or institution.”

From Greenbiz.com:

“Natural capital accounting gets a push at Global Green Growth Forum”

image source: ForumForTheFuture.org

 

 

 

 

 

 

 

 

One of the positive outcomes achieved on the sidelines of the Rio+20 conference, as highlighted by Jo Mackness at GreenBiz on June 26, was progress made on natural capital accounting. Fifty-seven countries and 86 companies, for instance, signed a World Bank-organized communiqué committing signatories to account for the value of clean air, clean water and forests in their decision-making.

 

From ThinkProgress.org:

“Federal Reserve Official Calls For Placing Limits On The Size Of Big Banks” 

image source: Huffington Post

 

 

 

 

 

 

 

 

 

[Federal Reserve Board Governor Daniel ]Tarullo said that, in order to keep big banks from growing so large that they threaten the entire financial system, they should be limited in size to a certain percentage of the overall economy.

“[T]he Fed should block any merger or acquisition this group of big banks attempts to make,” which it is allowed to do under Dodd-Frank.

 

The string of positivism actually began a bit earlier in the week with a post from The Atlantic’s new site Quartz:

“Does Ben Bernanke want to replace GDP with a happiness index?”

image source: Redefining Progress

 

 

 

 

 

 

 

In a prerecorded talk for a conference this past summer, Bernanke said, ”…we should seek better and more-direct measurements of economic well-being, the ultimate objective of our policy decisions.”

Rather, Bernanke suggests that survey measures of happiness and life satisfaction should take their place alongside GDP as measures of how a nation is doing. In doing so, he joined current British Prime Minister David Cameron, who said ”it’s time we focused not just on GDP but on GWB—general wellbeing” and former French Prime Minister Nicolas Sarkozy, who said he would ”fight to make all international organisations change their statistical systems by following the recommendations” of the Stiglitz report. He refers to Nobel Prize winning economist Joseph Stiglitz’s committee’s work proclaiming “the time is ripe for our measurement system to shift emphasis from measuring economic production to measuring people’s well-being.  The emphasis is in the original.

It’s good to end the week on an up note. Would be great if I could make a habit of this….

What’s an architect to do?

Some not-so-startling news – at least to those of us directly affected – was released last week by the American Institute of Architects.  The gist of the sobering report: architectural firm billings have dropped 40% since 2008 and more than 28% of positions have disappeared.

(We always, by the way, seem to be one of the professions hardest hit by economic cycles. In a previous period, I recall a newspaper headline that went something to the effect of “In This Recession, Be Glad You’re Not an Architect.” I couldn’t find that despondent headline in Google just now. But, searching the New York Times, I turned up apparently similar articles from other downturns: “Recession is Ravaging Architectural Firms” (1992), “Many Architects Are Losing Jobs in the Recession” (1983), among others.”)

 

 

 

 

The situation assessed more bluntly at planetizen.com

I brought this up in my return visit on Curtis B. Wayne’s radio show “Burning Down the House” this past Sunday (archived here) in which we were discussing ecodesign and economics. While our larger topics concerned the origins of suburban sprawl and how that subsequently became the “American Way of Life,” I used those statistics as a segue to talk about what it is that architects and other designers can or should be doing in a future that is likely to preclude making things – buildings and objects – on the same material scale as in the previous century.

On the face of it, there’s a conflict of interest in a designer advocating a less materialistic world. Are we, in effect, talking ourselves out of jobs? (You know, the jobs that don’t exist in the first place….) Certainly we have to spurn McMansion commissions, or at least urge our less eco-minded clients to adhere to the advice Sarah Susanka provides in the Not So Big House. And it’s rather hard to justify designing yet another chair or teapot when the world is not exactly lacking in those.

But – and here comes the EcoOptimist’s sunny side of the storm – architects and designers are particularly well suited to the imminent task of advocating for and persuasively cajoling us into the “better place” that can be the outcome of our dual eco crises. As I’ve mentioned previously, designers are, virtually by definition, optimists; “Designers look at a thing or a problem and immediately start imagining what could be.” And as my blog’s alter ego might say, “problems, have we got problems.” So that optimism has plenty of targets to address.

Designers, obviously, also have to be visionaries. How else to see to possibilities amidst the economic and ecological rubble? Or to envision potential utopias where others fear post-apocalyptic dystopia? Accompanying that, most designers have the ability, developed through years of sometimes contentious client and public agency meetings, to communicate their visions. (One hopes, of course, that they are not so good at communicating that they are able to white- or green-wash a less than visionary idea. I’m looking at you, Le Corbusier and Frank Lloyd Wright. Plan Voisin and Broadacre City, as enticing as they may have looked at the time, did not help.)  Environmentalism and ecodesign have long-standing PR and image problems, with most people connoting the movements with personal sacrifice. Designers, working in teams with others as they often do in their projects, can both devise positive solutions and create imagery that allows the public to envision how our lives would be affected.

 

 

 

 

 

 

 

 

It’s often been stated that architects are “Renaissance men” (apologies for the gender specificity), with their endeavors encompassing math, physics, sociology, psychology – and sometimes, for those designing private residences, couples counseling – as well as, of course, the expected 2D and 3D arts. This generalist background, which unfortunately is becoming less the norm in architectural education, is necessary for dealing with complex, multidisciplinary issues in a systems manner. Specialists, on the other hand, are not usually equipped to synthesize the factors outside their expertise; consciously or subconsciously they focus on what they are familiar with. (Old medical joke: What’s the difference between a general practitioner and a specialist? One treats what you have; the other thinks you have what he treats.)

Here, then, is the upside of that AIA survey. Yes, conventional building and object design, along with their attendant jobs, are going away. That’s a good thing in terms of environmental solutions. Turns out it’s also a good thing for architects and designers, as well as the world at large, in that their abilities can provide a much-needed service as we all search for and develop those solutions.

A post in The Atlantic Cities about the AIA survey asks: “Where are all the out-of-work architects going? Possibly to jobs in real estate and city government. And that could be good news for everyone.” In past recessions, architects, especially recent grads, have often found their careers re-routed. Coincidentally, a few years back, the AIA embarked on an initiative to encourage architects to run for public office, observing “architects learn creative problem solving and other skills that can make them effective community leaders.” The emphasis there is on architects’ strengths in listening and consensus building. Fair enough and important enough, but the potential goes beyond that I think, to employing those multidisciplinary, generalist skills mentioned above into a – and I use the word hesitantly – holistic synthesis.

So designers have both an opportunity and a responsibility to redirect their talents. For reasons of both necessity and choice, we designers need to apply ourselves to developing and communicating our constructed futures. We need the work, and it’s good work to be doing.

Planets Are People, My Friends

Let’s try this out and see where it takes us. In the blogworld a few days ago, I came across a post about a river in New Zealand being given official legal personhood. Elsewhere in the world, animals and nature are being awarded human-like rights. And just last week, a group of prominent scientists including Stephen Hawking declared that there is no unique difference between humans and other animals.

Call that point #1. Point 2: In the US, as we all know, corporations are people. (Some would say corporations are animals, so I guess that makes sense, though a few would say that’s an insult to animals.)

All this makes it but a minor leap to conclude that, if animals, rivers, forests and corporations have legal rights, why not the planet? You know, Gaia, Mother Earth and all that. This, of course, could profoundly change how we see ourselves — legally and morally — in relation to the other occupants, both living and inert, of this planet.

But I’ve got another reason for contemplating this vast, to put it mildly, extension of the definition of personhood. I’ve written elsewhere in this blog about the fundamental economics explanation for pollution: externalities. A decent definition of an externality is “an effect of a purchase or use decision by one set of parties on others who did not have a choice and whose interests were not taken into account.” A classic example would be the evil factory dumping its effluent into a river.  The cost of that pollution is borne by the people and governments downstream. Similarly, when a fossil fuel burning power plant dumps carbon dioxide into the atmosphere, its owners don’t pay for the resulting climate disruption. Want a more tangible example? Look at the towns whose water sources are being polluted by nearby fracking.

But what if nature – the planet – had rights and, furthermore, had standing in court? What if nature could sue for damages? Would that, in effect, lay the economic and legal groundwork for internalizing those externalities? Among other outcomes, we could have the equivalent of carbon pricing – without involving the government so it wouldn’t be vulnerable to attack as a tax.

We can take this idea – odd as it may sound – further and say that the Earth owns all the natural resources “onboard.” You want some steel? First you have to buy the ore from Earth Inc. (Notice that twist? If the planet becomes a corporation, it has rights through that legal standing as well.) Same for baby seals (unless the seals themselves are granted rights), or for oil or the Amazon rainforest.

 

 

 

 

Logo by Lori Greenberg/Bergworks

There is at least one major problem, aside that is from figuring out who the signatories on Earth Inc.’s checking account are. Mother Nature would be the biggest monopoly imaginable. OPEC’s oligopoly would seem like an unfettered free market in comparison. And imagine an antitrust suit against the Earth.

Could this be a conservative’s dream? A solution based upon free market principles and an expansion of both individual (if you can get your head around seeing the planet as an individual) rights and property rights.

Yeah, there are a lot of details to be worked out in this hypothetical monetizing of the Earth. Some ethical ones, too. Would it amount to commoditizing nature? That’s bad, right? Right? Is it worse than assigning no value to nature, which is essentially what the market does now?

Corporations, of course, have shareholders. I propose that every person on the planet be granted a share in Earth Inc. (Yes, I know. What about animals and rivers and forests? If they have personhood rights, shouldn’t they have shares in Earth inc. as well? Yes, they should, but the problem is figuring out who represents them, as well as who their signatories are.  I didn’t say this would be simple.)

So if the planet’s resources are polluted or drawn down, compensation is paid to the shareholders. Now that sounds really odd. The effect would be higher prices for many industrial processes and products as those companies had to pay fees to Earth Inc., but those fees would be redistributed back to us, the shareholders. Many things would be more expensive, but we’d get money back in the form of dividends. In theory, we’d be no worse off financially, but we’d be paying the true cost of things and making our consumption choices more accurately.

In a modern context, all of this evolves from philosophies of animal rights. Kant said treating animals well is “good practice” for treating humans well. (Not trying to show off here and I’m certainly no Kant expert. It’s part of the material I cover in one of my Parsons courses.) “We can judge the heart of man by his treatment of animals.” In his world, though, animals were considered non-sentient (which, in case you’ve been mislead by Star Trek episodes, means non-feeling, not non-thinking) and soul-less, barely more than the mechanical vessels described by Descartes.

Just as there are varying beliefs as to what constitutes a soul, there are ethics and religions that believe the Earth has a soul. But that isn’t the issue here, at least as long as we’re defining corporations as people; I don’t think anyone could argue that a corporation has a soul.

Could this possibly work? I’m treading here into the realms of economics, law, ethics, religion and who knows what else. But maybe this type of fundamental re-envisioning is just what we need.

Who do designers think they are anyway?

Are you what you own? And if so, does that mean designers — the people who think up most of the things you own – are in fact designing you?

A fascinating online discussion this past week has led me to ponder this question of designers’ roles and responsibilities – and limitations. The discussion began with the posting of an essay called “Designing Culture” by Colin McSwiggen, a postgrad student at the Royal College of Art in London. McSwiggen starts out by offering that one of the standard definitions of design (“Giving form to culture”) is “delusional. It seems to be gesturing toward the all-too-common notion that designers have some kind of sociocultural superpower: by shaping the physical objects that mediate and regulate people’s behaviors and interactions, they are shaping society itself!”

This, he says, is a vast overstatement of designer’s roles, “a classic credit-hogging move on the part of the design world’s plentiful narcissists,” because

The reality is that most designers work under some pretty heavy constraints: There’s a client or employer who gives them a mandate and makes the final call on what will actually be manufactured, printed or constructed. There are precedents set by existing designs that simultaneously inspire and circumscribe the designer’s work and limit the range of possibilities that clients and users will find acceptable. Finally, designed objects, spaces and images are frequently reinterpreted and repurposed by people who have no idea what the designer had in mind. In short, design is subject to the same limitations as any other so-called creative practice, and designers are no more authors than, well, authors are.

There are certainly elements of truth there. When I am designing someone’s home, I can’t (and wouldn’t want to) run unfettered with my own ideas because, well, there’s that client – who has interests and tastes of their own.

 

 

 

 

 

 

 

 

Who makes the design decisions? (Fictional architect Howard Roark altering his modern design at the request of his clients. Image from The Fountainhead, 1949)

Perhaps this is the difference, along with the pesky need for functionality, between an applied artist such as a designer or architect and a fine artist: the presence of a client or employer and – depending on how you view it – the limitations or opportunities in the accompanying constraints.

McSwiggen’s deflating of designers’ roles was picked up on by Cameron Tonkinwise who, until the summer was head of a program I teach in at Parsons (he’s now moved on to Carnegie Mellon and is missed here). He tweeted: “every idiot who leapt on then off the #designthinking bandwagon needs to read this.”

(I think Cameron’s digital outbursts of indignation are great and sorely needed, but when they are forced into Twitter’s length limitations they sometimes trend toward incomprehensibility in a language that I once called “websperanto.”)

McSwiggen goes on to write that the things we possess are an integral part of our cultural class definitions:

Without physical stuff to remind us of how we supposedly differ from one another, our hierarchies would be awfully ramshackle; stripped of our possessions, categories like “class” start to look like just a bunch of learned behaviors and confused ideas. Whether prohibitively priced cars, gendered garments, or separate schools for blacks and whites, social hierarchies are always maintained with the help of physical objects and spaces designed to reflect those hierarchies. Otherwise everyone’s claims of superiority and difference would be quite literally immaterial.

Cameron’s tweet about McSwiggen’s post in turn prompted Lloyd Alter of Treehugger.com (you with me still?) to post “Colin McSwiggen suggests that if [we] really had nothing, nobody would know who we are or what we stand for. Our stuff defines us.”

And therein lays, I think, a contradiction. (Sidenote: so long as I’m complimenting folks here, Lloyd is my singularly favorite eco-blogger, managing to post a range of incredibly relevant topics with a neat balance of acerbic insight and criticism. My opinion, of course, is wholly unprompted by his writing a great review of my book.) If physical objects define us, and designers design those objects, then something like the law of transitivity must apply here, resulting in “designers define us.”

But that’s not my real problem. It’s with the “stuff defines us part” and the idea that we become an indistinguishable mass of life without things to differentiate us. Now that’s probably an unfair exaggeration of what McSwiggen means, but even without hyperbole it strikes me as quite a cynical view of humanity. Yes, we live in a highly materialistic world – and that’s a topic very relevant to EcoOptimism — but I think the materialism is more about how we feel about ourselves than how we see others. A large part of materialism involves attempting to sate what we view as needs. Those needs are a result of the things available out there in the world (though perhaps not within reach) creating desire for them. It’s the combination of exposure via advertising and the breakdown of global distances enabled by the Internet, along with that old “keeping up with the Joneses” false sense of self-value.

 

 

 

 

 

 

 

 

 

 

Barbara Kruger, untitled (I Shop Therefore I Am), 1987.

The differentiation McSwiggen is writing about, I think, is not as much about cultural classes as it is about self-image. Am I successful if I don’t have the things others do? Am I really defined by how new and large and flat my television is? Or what version number iPhone I’m using? (Not being a car owner and knowing virtually nothing about current models, I’m hard pressed to come up with a vehicular interpretation here.)

Either way — whether we’re talking about self-esteem or class differentiation — we come to the conclusion that objects have an effect on us, perhaps a profound effect. And those objects get designed by someone.  So an individual or a group is responsible for the emergence of those objects.

Does this mean designers determine what we are? Of course not. That would indeed constitute a “sociocultural superpower.”  But it’s an unavoidable fact that designers have at least a very significant role in determining what kinds of objects – electronics, buildings, clothes, plug-in air fresheners — are produced.  That role can be reactive or proactive.

In a model sustainable world, we would re-evaluate the real utility and real happiness that material objects lend us. This would lead to questioning what the things are that we really need and what the best ways to fulfill those needs are. The result could well be a dramatic change in the demand for various things.

Typically, designers would react to this, adapting as best they can to the new “market.” (Only occasionally are there visionaries such as Steve Jobs and his minions who create markets.) But reacting is not sufficient, given the role of designers in the development and emergence of material objects.  This is where the proactive part comes in. It’s also where the survival of designers emerges. In short, we have both a social and personal (if we are to have jobs and careers) responsibility to use our training and experience to participate in – if not lead – that re-evaluation of the purpose – the utility and joy — of material objects.

The re-evaluation process may in some cases lead to “dematerialization” where we (designers and users, for lack of a better term) conclude that some objects are in fact not desired. Which might lead to fewer design opportunities and, hence, fewer designers. And it presents designers with a bit of an existential dilemma: if we (designers) advocate dematerializing and owning fewer (but better?) things, as sustainability requires, are we talking ourselves out of jobs? Not if we take a larger view of designers’ roles. That view, which also happens to lead to the continued existence of design and designers, involves us having a leading part in imagining and advocating for things that are truly beneficial and enable us to thrive.

That doesn’t grant us sociocultural superpowers (or the accompanying egos). But designers do have some important abilities, most significantly to envision alternatives and, as I always emphasize with my students, to question our assumptions. When those abilities are combined with a realization of ethical responsibilities (and with other values like entrepreneurship), we get the potential for the inventions and reconceptions that can transform us not only from an unsustainable existence, but past a merely sustainable one and to a place where we flourish.