Capitalism as we know it is going down. This is so because the assumption that populations will continue to increase and transform into new markets that can consume natural resources indefinitely has reached the end. The environment can’t take it anymore. Clean air and water is in jeopardy, and the planet’s population must stop growing in order to reach a sustainable relationship between population size and demographics and natural resources.
Conservative capitalists don’t want to hear this because they just want to run out the clock on the old paradigm. Clinging to oil as the primary fuel for economic development is evidence of their failing to transform to renewable energy that is essential for sustainable economies.
Maybe the light bulb will turn on as they realize the tremendous opportunity from transforming national economies from the old paradigm to a new one. Some will get it, and off we will go.
Dr. John Ikerd offered a solution to help ease the way in his book, Sustainable Capitalism, A Matter of Common Sense © 2013 Kumarian Press. In the book, he offers “The Bill of Rights for Sustainability” that is published here in the slideshow.
What is the “Genuine Progress Indicator”?
- A proposed replacement for gross domestic product as a way to measure economic performance
- GPI incorporates consideration for environmental and social factors that are omitted from GDP
- If the poverty rate increases, GPI decreases
- Resource depletion and carbon footprint may be considered
“Comparatively speaking, the relationship between GDP and GPI is analogous to the relationship between the gross profit of a company and the net profit; the Net Profit is the Gross Profit minus the costs incurred; the GPI is the GDP (value of all goods and services produced) minus the environmental and social costs.”
The Guardian is way ahead in reporting on sustainable economics and GPI.
Beyond GDP: US states have adopted genuine progress indicators
From Vermont to Hawaii, the GPI is becoming more popular. How can states use it to inform policy and economic development strategies?
Guardian Professional, Tuesday 23 September 2014
Vermont two years ago became the first state in the US to pass a law introducing a new metric for measuring economic performance and success.
The Genuine Progress Indicator (GPI) offers an alternative to the Gross Domestic Product (GDP), which has been used at national and state levels since Simon Kuznets presented it to Congress in 1934, despite his warning of the oversimplifications embedded in the metric.
Systems thinker Donella Meadows, the founder of the Vermont-based organisation that I now direct, cut to the heart of GDP’s limitations when she wrote: “If you define the goal of society as GDP, that society will do its best to produce GDP. It will not produce welfare, equity, justice or efficiency unless you define a goal and regularly measure and report the state of welfare, equity, justice, or efficiency.”
So it should come as no surprise that Vermont has been joined by 19 other US states and dozens of nations in working on “beyond GDP” metrics.”
Marta Ceroni is the executive director of the Donella Meadows Institute, an education non-profit based in Norwich, Vermont.”