Economics in a Full World
A: List the major ideas, concepts or key points- point by point
B: Summarize the AUTHOR’s main point or idea- at LEAST 1-2 paragraphs
When the economy expansion interferes with the ecosystem, we will sacrifice natural capital that is worth more than man-made capital. We will then have uneconomic growth, producing bads faster than goods. Makes us poorer, not richer. Once we pass the optimal scale, growth becomes stupid and impossible to maintain. Relying on growth in this way might be fine if the global economy existed in a void, but it doesn't. When the economy expansion interferes with the ecosystem, we will sacrifice natural capital that is worth more than man-made capital. In a sustainable economy, investment would be mainly for replacement and qualitative improvement. The transition to a sustainable economy would require many adjustments to economic policies.
C: Write a reaction paragraph to the article stating your own thoughts on the topic, using specific citations from the article to support your views
After reading this article i do think that sustainability can be defined in terms of throughput by finding environment's capacity for supplying the resource. To economists, resources are a form of wealth that ranges from stocks of raw materials to finished products and factories. Natural capital should be maintained on its own, because it became the limiting factor. The goal is called strong sustainability. Rate of production should equal the rate of depreciation and since everything has to equal equilibrium, we should find a way to reach a balance.
So what?:
What if...? There was a rapid increase in the economy:
This reminds me of?: Silent Spring
In that book Rachel Carson talked about the environmental issues
- Growth is thought to be the solution to economic problems
- When the economy expansion interferes with the ecosystem, we will sacrifice natural capital that is worth more than man-made capital
- Since Earth has finite resources, everything must reach equilibrium
- We will then have uneconomic growth, producing bads faster than goods. Makes us poorer, not richer. Once we pass the optimal scale, growth becomes stupid and impossible to maintain
- Since Earth has finite resources, everything must reach equilibrium
- Utility refers to level of satisfaction, and cannot be measured by economists
- Many mainstream economists believe that man-made capital is a better alternative than natural capital and say the two should both be maintained, this is called weak sustainability
- A problem is that people benefit for uneconomic growth and have no reward for changing. Also the national accounts do not register the costs of growth for all to see
- To get rid of poverty, grow the economy. Don't distribute wealth from the rich to the poor, it will slow growth
- When the economy expansion interferes with the ecosystem, we will sacrifice natural capital that is worth more than man-made capital
- The modern day approach comes from work in the 1960s and 70s. The tradition carried on by ecological economists and subdivisions of mainstream economics called resource and environmental economic
- Environmentalists would be happy because throughput would not be growing. Economists would be happy because GDP would be growing.
- In a sustainable economy, investment would be mainly for replacement and qualitative improvement.
- A sustainable economy would most likely not be employ all due to economic trends cheap labor, more machinery
- The transition to a sustainable economy would require many adjustments to economic policies
B: Summarize the AUTHOR’s main point or idea- at LEAST 1-2 paragraphs
When the economy expansion interferes with the ecosystem, we will sacrifice natural capital that is worth more than man-made capital. We will then have uneconomic growth, producing bads faster than goods. Makes us poorer, not richer. Once we pass the optimal scale, growth becomes stupid and impossible to maintain. Relying on growth in this way might be fine if the global economy existed in a void, but it doesn't. When the economy expansion interferes with the ecosystem, we will sacrifice natural capital that is worth more than man-made capital. In a sustainable economy, investment would be mainly for replacement and qualitative improvement. The transition to a sustainable economy would require many adjustments to economic policies.
C: Write a reaction paragraph to the article stating your own thoughts on the topic, using specific citations from the article to support your views
After reading this article i do think that sustainability can be defined in terms of throughput by finding environment's capacity for supplying the resource. To economists, resources are a form of wealth that ranges from stocks of raw materials to finished products and factories. Natural capital should be maintained on its own, because it became the limiting factor. The goal is called strong sustainability. Rate of production should equal the rate of depreciation and since everything has to equal equilibrium, we should find a way to reach a balance.
So what?:
- Growth is thought to be the solution for all the major economic
- Stable economy
- Loss of natural resources
- Push economic growth
- Author: Herman E. Daly
What if...? There was a rapid increase in the economy:
- Loss of resources
- More environmental problems
This reminds me of?: Silent Spring
In that book Rachel Carson talked about the environmental issues