Deep Economy by Bill Mc Kibben A Review

Deep Economy by Bill Mc. Kibben A Review by Wayne Hayes 11/18/2014 V. 2. 0 | Build #11

Deep Economy by Bill Mc. Kibben 11/5/2020 Source: Deep Economy web site Professor Wayne Hayes 2

Purpose The intent of this presentation is to guide the student through Deep Economy by Bill Mc. Kibben. The author brings a subtle design to the book. Try to grasp his messages. He starts with a vigorous critique of economic growth and moves to localism and civil society organizations as an alternative to economic globalization. 11/5/2020 Professor Wayne Hayes 3

These themes build an eco-economy. 1. Questioning growth derived from exports 2. Development > growth: Do better with less. 3. Promoting local economies around diversity and within Nature. 11/5/2020 Professor Wayne Hayes 4

Notice the Anthropocene and the Age of Accelertion. Chapter 1, After Growth, begins with the steam engine and the invention of the idea of economic growth in the late 18 th century, which we know as the Anthropocene. Mc. Kibben introduces the equivalent of the Age of Acceleration after World War II on page 7. 11/5/2020 Professor Wayne Hayes 5

TINA and its antidotes soon follow. There is No Alternative (or TINA) was the prevailing “empire of the mind” (p. 9, 10). The response cited included Limits to Growth and Small is Beautiful. Mc. Kibben summarizes his response on pages 11 and 12. Also see pages 35, 38, and 41. We will discuss in class. 11/5/2020 Professor Wayne Hayes 6

Not everyone is happy with the economy. 11/5/2020 Professor Wayne Hayes 7

Not everybody approves of capitalism, either. 11/5/2020 Source: Capitalism’s. Professor Wayne Hayes Waning Popularity, Economist, 4/7/2011 8

Nor is everyone optimistic about their future. Pew Research Global Attitudes Project, October 9, 2014 11/5/2020 Professor Wayne Hayes 9

Mc. Kibben offers a short course in ecological economics. • Mc. Kibben assails the macro-economics of growth. Don’t confuse Gross Domestic Product with well-being. • He notes the side-effects not counted in market transactions, the externalities. 11/5/2020 Professor Wayne Hayes 10

Context: Cosmopolitan Localism To think of Bill Mc. Kibben as parochial because he eats locally, as in chapter two, would miss his point. He starts in Vermont, but ends up in Afghanistan, Bangladesh, India, and China. He goes global with the simple lessons of local economies. He brings to life many of themes that combine ecology, economics, community, and ethics. That is what you should take away here. Remember the quote from Wendell Berry that explained that the work of sustainability is small and humble. Mc. Kibben demonstrates that point --- and dedicates this unpretentious book to his friend, Wendell Berry. Mc. Kibben claims that community and localization provide the antidote to economic growth based on globalization. 11/5/2020 Professor Wayne Hayes 11

Context of Deep Economy 1. Questioning the systemic imperative to growth is fundamental to World Sustainability. We have questioned economic growth and identified much of the global crisis on the dynamics of growth. The Limits to Growth implicitly provides an underlying alternative paradigm. 2. More is not always Better, a pivot basic to Deep Economy. We must distinguish between qualitative development and physical growth, a basic tenet of the economics underlying sustainability. 3. Mc. Kibben will artfully connect the global with the local and the Global North with the Global South. He will argue strongly for decentralized economic activity within a durable economy. Mc. Kibben does not use the term, but this is all about world sustainability. 11/5/2020 Professor Wayne Hayes 12

Economic Alchemy "How can the economy be harnessed to serve sustainability? What makes this question so ironic is that the growth in the physical scale of the economy under the prevailing regime of economic globalization has depleted resources, destroyed ecosystems, overwhelmed natural waste disposal sinks, waged war on subsistence cultures, and produced shocking maldistribution of wealth and income. How, then, can the economy be turned around to reinforce sustainable development rather than to destroy ecosystems, resource endowments, and indigenous cultures? This alchemy must be resolved to promote sustainability. " 11/5/2020 Professor Wayne Hayes 13

Economic Alchemy (continued) Mc. Kibben contributes toward that alchemy. He challenges headon the consensus around and the ideology of economic growth, the mantra of economic globalization. He charts another path, one based on local economies and community. Only by getting through the book to its conclusions can the reader appreciate the vision and the deeper analysis that lies hidden by Mc. Kibben in this engaging book. Keep an open mind and make the vital connections.

Questioning growth Mc. Kibben offers three objections to the standard economistic treatment of growth, all of which should be familiar to you: 1. The alleged gains of growth (to the extent that they really exist) not only go to the elites but fail to benefit the majority. This raises questions of inequality and of insecurity. 2. The ecological limits to growth are mounting: resources are being depleted, sinks are overwhelmed (e. g. , CO 2), and carrying capacity exceeded. This defines the condition of overshoot. 3. Significantly, economic wealth does not produce happiness or fulfillment -- growth is overrated on its own terms: "growth is no longer making us happy" (1). This assertion is basic to Deep Economy and should be essential to what you take away from this book. 11/5/2020 Professor Wayne Hayes 15

Themes in Deep Economy Note some of the contrasts implied in the book: • From globalization to localization (but with markets) • From mass society, mass production, mass consumption to local communities within bio-regions at an appropriate scale • From hyper-individualism to cosmopolitan civic engagement • From exclusive emphasis on private property to what is shared, the commons • From political exclusivity to inclusivity around direct democracy, such as town meetings • From high levels of externalities to low social costs through community involvement that negotiates big decisions • From export maximization to a diverse local and regional economy that directly serves the local population. 11/5/2020 Professor Wayne Hayes 17

Listen to Bill Mc. Kibben 11/5/2020 Professor Wayne Hayes 18

Discuss: The lessons from Deep Economy can be liberating. Mc. Kibben observes that "greater wealth no longer makes us happier" (2). You can lead a satisfying and meaningful life without coveting riches. You can live well and lead a life of consequence. This essential insight opens up opportunities and possibilities. Ask yourself: How does this insight affect me? Let’s pause to talk about this insight. 11/5/2020 Professor Wayne Hayes 19

Ch. 1: After Growth: main points 1. Growth is a historical invention made possible by coal and other fossil fuels that we associate with the Industrial Revolution. We know this as the Anthropocene. Growth is enshrined in the West, particularly the USA. (Actually it is the law: The Employment Act of 1945 -- no depressions, please. The principle of economic globalization was embedded in the Bretton Woods agreement. ) 2. Read carefully the empirical case made on pages 11 and 12. 3. Contrast the positions of these two economists, Larry Summers (26) and Bob Costanza (27), on how to understand growth. 4. Mc. Kibben goes international in making his case, pp. 34 -42. 11/5/2020 Professor Wayne Hayes 20

Ch. 2: The Year of Eating Locally Bill Mc. Kibben tells his story of eating local produce for a year in his home state, Vermont. Along the way, he critiques the food and agriculture industries. He learns much from the experience. He makes a subtle point: You, too, can change your life for the better by producing some of your own food, eating locally, and eating smart. Makes sense for the Garden State. Think about it. Mc. Kibben makes food the basis of re-building the economy and the culture around localism. He enriches our sense of place. Give attention to his conclusion, p. 94. 11/5/2020 Professor Wayne Hayes 21

Images of the Intervale CSA, Burlington, VT 11/5/2020 Professor Wayne Hayes 22

Intervale, CSA 11/5/2020 Professor Wayne Hayes 23

Calkin family farm 11/5/2020 Professor Wayne Hayes 24

Food Day 11/5/2020 Professor Wayne Hayes 25

Community Supported Agriculture 11/5/2020 Professor Wayne Hayes 26

Food Depot at Intervale CSA 11/5/2020 Professor Wayne Hayes 27

Inside Food Depot 11/5/2020 Professor Wayne Hayes 28

The economic model: 11/5/2020 Professor Wayne Hayes 29

Ch. 3: All for One, or One for All Again speaking as a Vermonter, Mc. Kibben critiques the erosion of the valued and unique character of local culture. This contrasts with his story on eating locally. He offers data to make the case of the fragmentation and the dysfunctionality of hyper-individualism, pp. 101 -104. Mc. Kibben’s message is simply one of caring and sharing around community. This is basic to promoting sustainability --- from the ground up, from local roots. 11/5/2020 Professor Wayne Hayes 30

The remedy: community, conviviality and companionship Contrast the farmers' market or Community Supported Agriculture (CSA) for community-building. Mc. Kibben urges that we turn to the local for a richer community life and culture that complement nurturing the local economy. Too much stuff and not enough companionship, says Mc. Kibben. Shift the emphasis from being a consumer to being a citizen. Participate. Lead an active, engaged life. This is best done where you live and work. Connect. Start today. Mc. Kibben bases this chapter on the work of Richard Layard, an economist, and his research in his book, Happiness. See pages 108 -112. 11/5/2020 Professor Wayne Hayes Heed his conclusion, page 128. 31

Ch. 4: The Wealth of Communities Mc. Kibben uses the examples of Clear Channel and Walmart to illustrate how communities are eclipsed, with tangible losses that are not easy to quantify. His remedy, again, is the restoration of community through rebuilding local economic activities and institutions. He speaks again as a loyal and patriotic Vermonter. He cites the New England town meeting and the intermediate level of scale between the individual and the community. Scale and localism resonate throughout this chapter. 11/5/2020 Professor Wayne Hayes 32

Ch. 5: Durable Future Mc. Kibben goes cosmopolitan here, taking us all the way from Vermont to China. (What he sees is consistent with and often informed by Lester Brown. ) Some points to consider: 1. Every year, 30 million people leave the rural areas and migrate to over-crowded cities. 2. Water has become the limit of the carrying capacity to support growth. Soil is, as well. 3. Every year, China adds the equivalent of the population of California to its energy generating capacity --- mostly by burning coal. (We will see later in our course that this is changing. 4. China devotes 10% of GDP to deal with the environmental sideeffects of economic growth and to public health. 5. Since 2005, China has been a net importer of grain. Mc. Kibben asks on page 187: "how on earth do you grow at the rate the Chinese are growing and don't collapse? " 11/5/2020 Professor Wayne Hayes 33

Dasgupta: Wealth as Liquidation Mc. Kibben quotes from the research of Sir Partha Dasgupta , a University of Cambridge economist, that wealth in developing countries actually declines with economic growth throughout the world, page 190. China is the only exception. Dasgupta's research goes from 1965 -1993, capturing the heyday of the economic growth of the Washington Consensus. This dramatic point illustrates the failure of the orthodox economistic growth model. Of course, inequality increases sharply with economic growth, p 195. 11/5/2020 Professor Wayne Hayes 34

Other cases Mc. Kibben quickly reviews other cases in which economic globalization backfires: • Mexico: corn; • Uganda: coffee; • Iraq: seeds. 11/5/2020 Professor Wayne Hayes 35

Deep Economy is Locally Rooted Mc. Kibben draws again on his experience as a citizen of the world. His case study of success is found in the Nayakrishi Andolan (New Farming) movement in Gorasin, Bangladesh. His report, pages 200 -206, culminates with a telling example of local knowledge used to increase productivity with eco-ecological means. Technically this community-based subsistence project reduces GDP, since the food and restoration is not produced for the market. (No wonder it's called gross economic product!) 11/5/2020 Professor Wayne Hayes 36

China: Heifer International Mc. Kibben provides another success story, pages 207 -210. This comes from Sichuan province in China, where the NGO Heifer International donated rabbits and technical advice. The results are stunning. His take-away lesson: "It's that there are ways to make workable economies out of almost anything, if you think small and work through communities" (207). Mc. Kibben calls this "the key task of our time" (210). 11/5/2020 Professor Wayne Hayes 37

Future Generations Mc. Kibben's next case is Future Generations and its development expert, Daniel Taylor, from West Virginia. Taylor advocates not investing money, but mobilizing and investing available human time and energy through a community-designed work plan. The case study, pages 211 -216, occurs in Afghanistan, certainly a contested and geopolitically significant country, and in Himalya, India. He follows up with Kerala, India, pages 218 -221. Mc. Kibben concludes with a contrast of the economic model of the USA versus that of Europe, one worthy of some consideration, especially as we struggle through our epic recession today. 11/5/2020 Professor Wayne Hayes 38

Happiness Index 11/5/2020 Professor Wayne Hayes 39

Afterword The concluding chapter begins with some of themes found earlier in our course in Brown, Plan B 4. 0: 1. Peak oil; 2. Global warming: Mc. Kibben's earlier Death of Nature was a harbinger; 11/5/2020 Professor Wayne Hayes 40

Conclusion The book modestly ends with the essential alchemy, the inversion within the economy: "Local economies can play an important role in reducing these (peak oil and global warming) problems. " Mc. Kibben tells us that the path to a durable economy can be sweet and add joy and fulfillment to our lives. It threatens and risks little. He has addressed the systemic faults of economic growth: ecocide, inequality and insecurity, and unhappiness. Small wonder why he dedicates this insightful little book to Wendell Berry. 11/5/2020 Professor Wayne Hayes 41