Economy and Environment

2009-07-02T11:44:00.000-07:00

The two domains are intertwined. Expanding economy puts a strain on the environment. Environmental constraints limit economic growth.This should be accepted as a fact of life. Economy and Environment are two parts of the same equation. Changes to one side will affect the other.
Our economic model is based on consumerism and perpetual expansion. National GDP is expected to grow forever. Company shareholders expect the company profits to go up year after year indefinitely. Somebody has to pay for this growth. In the current economic model it is the consumer who pays.
This paradigm has two major flaws:
Economical-
The consumer’s income cannot keep up with the pace of the economic growth. In order to overcome the income limitation consumers are enticed to borrow and use credit cards. But this too has its limits Sooner or later the loans must be repaid. This is not limited to individual consumers. Businesses large and small are going through the same perverse process. Can you blame this on individual and corporate greed ? Partially maybe, but ‘the buck does not stop’ with individuals and corporations. Governments, left of center and right of center, Democratic and Republican are borrowing beyond their ability to repay. What is even worse - they do everything in their power to encourage their citizens and businesses to do the same. They call it ‘Stimulating the Economy’ This vicious cycle leads to the bursting economic bubbles, recessions and financial catastrophes.
Environmental- The supply of available land is limited and so is the amount of natural resources that the planet Earth can provide. The economic and industrial expansion is indefinite. This is unsustainable. Without a fundamental shift in our economic paradigm the crisis ahead is certain.

The only viable solution is a complete paradigm shift from Indefinite Growth to Sustainability, Savings and Self-Sufficiency. Individuals, Businesses and Governments should be rewarded not for the growth, but for their self reliance, ability to withstand challenges, and to remain agile and solvent. Loans and Credits cannot remain the leading superstars of the economy. They should be relegated to secondary, support roles. Investors should learn to appreciate the steady dividends flow without the expectation of a perpetual revenue growth. Families should buy houses as a place to live and raise children, not as a speculation vehicle. Governments should provide the services without mortgaging the future of several generations of their citizens. This is a two way street. When Individuals are more self reliant and businesses are able to provide a steady employment the demand for government services goes down so government does not need to borrow and does not need to raise taxes to pay off the debt. Steady government, consistency of the regulatory environment and low taxes will support stability in the business environment which will be able to support steady employment which will allow individuals maintain their quality of life and remain self-reliant.

Introduction to the random notes of the Shadow of a Doubt

2009-07-02T11:16:00.000-07:00

The world is full of Doubts and each Doubt has at least one Shadow.
We are numerous, but we are quiet. We are loyal and caring.We provide shade and comfort. We know a great deal about everything that is happening in the world, but nobody ever talks about us or cares about our opinion. There are books written and movies made about a man without a shadow, but nobody ever express any interest in us The Shadows.This is an immense injustice and I, The Shadow of a Doubt, am going to do something about it. I count on your help. Please read, contribute and invite others to do the same. I hope that with your help many other Shadows will share their notes and collectively we will be able to let some Doubts to go away and have some rest.
I am too busy following my Doubts. I don’t have the time to refine my notes. When I learn about some issues from Doubts I’ll publish them as they come. It will be up to you to expand, clarify and address them. My notes reflect the views expressed by serious Doubts. Some people may find them troubling, discomforting, outright disturbing. Some may disagree vigorously. I would welcome any and all constructive responses. I also expect that there will be those who will label my notes as ‘Shadow’ ones. In human language the label Shadow as in Shadow economy, Shadow character have negative connotations. As a person I would probably feel offended and take it, well, too personally. Fortunately, as a Shadow, I am beyond this pettiness. This is the advantage a Shadow brings to this blog. It is well know that human personalities play a significant role in most discussions. In my opinion, any serious debate should be based solely on the issues, facts and the merits of specific arguments, not our likes or dislikes of an individual who presents them.