Support a Sustainable Economy

Dear Dr. Rouse and Dr. Holdren:

We the undersigned believe that perpetual economic growth is impossible on a finite planet.  We base this belief on fundamental principles of physics (the first and second laws of thermodynamics) and ecology (trophic structures and population dynamics).  We also believe that the costs of economic growth have surpassed the benefits as evidenced by profound environmental problems, such as climate disruption, resource shortages, and loss of biodiversity and ecosystem services.

We are concerned that U.S. economic policy is aimed at stimulating growth when it is not a viable goal and will not provide the benefits we want.  Even with the environmental problems and threats to the life-support systems of the planet, we still have increasing unemployment and a widening gap between the haves and the have-nots.  We do not believe that more growth policies will free us from this predicament.  In fact, the economic growth witnessed over the last few decades has exacerbated rather than solved these problems.  In light of these facts, we take the following position...

Whereas:

1)  Economic growth, as defined in standard economics textbooks, is an increase in the production and consumption of goods and services, and;

2)  Economic growth occurs when there is an increase in the multiplied product of population and per capita consumption, and;

3)  The global economy grows as an integrated whole consisting of agricultural, extractive, manufacturing, and services sectors that require physical inputs and produce wastes, and;

4)  Economic growth is often and generally indicated by increasing real gross domestic product (GDP) or real gross national product (GNP), and;

5)  Economic growth has been a primary, perennial goal of many societies and most governments, and;

6)  Based upon established principles of physics and ecology, there is a limit to economic growth, and;

7)  There is increasing evidence that global economic growth is having negative effects on long-term ecological and economic welfare...

Therefore, we take the position that:

1)  There is a fundamental conflict between economic growth and environmental protection (for example, biodiversity conservation, clean air and water, atmospheric stability), and;

2)  There is a fundamental conflict between economic growth and the ecological services underpinning the human economy (for example, pollination, decomposition, climate regulation), and;

3)  Technological progress has had many positive and negative ecological and economic effects and may not be depended on to reconcile the conflict between economic growth and long-term ecological and economic welfare, and;

4)  Economic growth, as gauged by increasing GDP, is an increasingly dangerous and anachronistic goal, especially in wealthy nations with widespread affluence, and;

5)  A steady state economy (that is, an economy with a relatively stable, mildly fluctuating product of population and per capita consumption) is a viable alternative to a growing economy and has become a more appropriate goal in large, wealthy economies, and;

6)  The long-run sustainability of a steady state economy requires its establishment at a size small enough to avoid the breaching of reduced ecological and economic capacity during expected or unexpected supply shocks such as droughts and energy shortages, and;

7)  A steady state economy does not preclude economic development, a dynamic, qualitative process in which different technologies may be employed and the relative prominence of economic sectors may evolve, and;

8)  Upon establishing a steady state economy, it would be advisable for wealthy nations to assist other nations in moving from the goal of economic growth to the goal of a steady state economy, beginning with those nations currently enjoying high levels of per capita consumption, and;

9)  For many nations with widespread poverty, increasing per capita consumption (or, alternatively, more equitable distributions of wealth) remains an appropriate goal.

We are asking the Council of Economic Advisors, the President's Council of Advisors on Science and Technology, and President Obama to consider the merits of a steady state economy with relatively stable population and per capita consumption.  We want to participate in an economy that is characterized by sustainable scale, fair distribution of wealth, and efficient allocation of resources.  Ecological economists like Herman Daly have demonstrated with scientific rigor the futility (not to mention the physical impossibility) of perpetual growth.  We want to get started on the transition to sustainability while we are in a position to manage how it will proceed.

Thank you for your time and consideration regarding this request.