More growth - within limits

Wow, this is becoming quite complex. Thanks Brendan and Makena for reflections and links. Tverberger’s article is just great, Hubbert’s prophecy is intriguing, Jackson’s growth dilemma can no longer be postponed, and Makena’s questions over growth, equity, and planning are very timely. I was little overwhelmed after going through all this -- need some time to absorb -- but they confirmed my appreciation for money as a vehicle for incremental changes.

We perceive the world through cost. The McDonald’s index is not only a purchase power parity measurement among nations but also a mirror of how much consumers worldwide value and are willing to spend on a Big Mac. No matter if you are a Scandinavian -- where this sandwich costs over seven dollars -- or Croatian -- where it is less than two -- we still eat this fast yummy food with French fries and Coke. Even though we find cheaper and healthier alternatives, we still cannot resist paying little more for something we can quickly grab, bite, and leave.

We do make rational decisions -- as long as we lack resources and enjoy affordable alternatives. Taxation is a key instrument to shape consumers’ behavior. Governments should tax more and, in return, provide more. They should do so, however, by not limiting the drive for entrepreneurship and diversification. Small enterprises are greatly responsible for job creation and wealth distribution, in addition to welfare programs. Norwegians have agreed to pay high taxes because the state has respected individual freedom at the same time as securing access to public goods.

Planning is the reverse side of economics. Planners’ ethics mandates a concern over broad participation, responsible decision-making, and the creation of public spaces. Supported by a liability system, planners are able to offset the externalities not measured by the forces of demand and supply. In Honolulu, for example, it surprises me the notion and importance that people place on civility. A large green area sitting at the heart of the city and children being told to walk in line to not obstruct sidewalks illustrate that collectivity is enforced by a planning system backed up by stable regulations and continuous education.

I am not trying to solve the world’s most pressing problems in these paragraphs. Nevertheless, I strongly believe that the right track to proactively deal with contemporary challenges like climate change and food security is finding the right balance between political, economic, cultural, environmental, and social forces locally and globally. Planning, in these contexts, functions as a platform where paradigms are reinvented and legitimacy reinforced. Streamlining accumulated knowledge and the use of available resources might not be an innovative approach, but will, at least, gradually improve our living standards and eventually delay collapse.