The podcast explores the concept of a zero growth economy as a means to achieve net zero emissions and the impact on living standards. It discusses how neoclassical economists have led to slower growth rates and increased employment insecurity. The correlation between energy consumption and GDP growth is examined, questioning the possibility of decoupling them. The potential economic impact of meeting net zero targets for 2050 is discussed, as well as the feasibility of a carbon credit currency. The challenges and consequences of transitioning to a zero growth economy are also explored.
A zero growth economy may be necessary to address climate change, but it could lead to falling living standards and reduced wages for many people.
There is a correlation between rising GDP and increasing energy consumption, highlighting the need to track and manage energy consumption in relation to economic growth.
Deep dives
The Limits of Economic Growth
The podcast episode examines the idea that economic growth can continue alongside efforts to achieve net zero emissions. It questions whether a zero growth economy is the only answer to achieving net zero emissions and explores the potential consequences of a zero growth economy on living standards. The episode discusses the correlation between low growth and falling living standards, using examples from Japan, Australia, and the UK. It also delves into the relationship between GDP growth and energy consumption, highlighting the significant challenges in decoupling economic growth from energy consumption. The episode argues that a zero GDP growth economy may be necessary to address climate change, but acknowledges the difficulties in achieving it and the potential impacts on innovation and companies.
The Need for Rethinking Consumption
The podcast episode emphasizes the need to rethink consumption patterns and the impact of lifestyles on the environment. It highlights the correlation between rising GDP and increasing energy consumption, stressing the importance of tracking and managing energy consumption in relation to economic growth. The episode argues that a parallel carbon credit currency could help address the carbon impact of consumption and promote equity by redistributing carbon credits. However, it acknowledges the political challenges in implementing such a system. The episode also touches on the importance of reducing carbon consumption and the potential need for wartime-style rationing to address the climate crisis.
The Struggle to Achieve Zero Growth
The podcast episode discusses the challenges in achieving a zero GDP growth economy and the potential conflict between economic growth and sustainability. It explores the limitations of relying solely on market-based solutions and the need for collective innovation driven by the state. The episode highlights the significance of income distribution in the context of economic growth and the urgent need to address inequality. It also raises concerns about the pace of change, the resistance to reducing consumption, and the geopolitical implications of different countries' energy consumption choices.
The Urgency of Addressing Climate Change
The podcast episode emphasizes the urgency of addressing climate change and the need to prioritize the reduction of energy consumption and carbon emissions. It discusses the current and projected impacts of climate change, including extreme weather events and the threat to agricultural production. The episode argues that immediate action is necessary, even if it means forgoing economic growth. It stresses the importance of raising awareness about the role of energy in production and consumption and the limitations of relying on market solutions. The episode concludes with a call for a fundamental shift in societal values and attitudes towards sustainability.
There’s a vain hope in investment circles, and amongst politicians, that we can still enjoy economic growth on the road to NetZero. There are those who believe that we can decouple our economic growth from our consumption of fossil fuels. In other words, we can continue to enjoy growth driven capitalism whilst avoiding the impacts of catastrophic climate change. Steve Keen is less convinced. He fits into the zero-growth camp, where the only way to reduce our impact on the planet is to stop increasing our consumption. So, what would that look like? For many people it might not be too different to life now, with vast segments of the population seeing their wages falling and living standards reduced. But the top echelons of society would feel the difference. Also, how do companies innovate if they lose the profit motive. And isn’t it all part of some global conspiracy for a new world order controlled by the elite, led by Bill Gates, who is merely a puppet for shape shifting reptilians working to destroy humanity?
