Prosperity without Growth: Disastrous Results of the Dominant Economic Model
Introduction
Tim Jackson with his book “Prosperity without Growth,” has stressed the need to review our current economic system. The dominant economic model based on continued growth has brought humanity to the brink of social, environmental, and financial disaster.
Aim
The purpose of this report is to (a.) Explain the current economic system and identify conditions that may lead to a more sustainable economy; (b.) Create a vision and strategy for Colourful Corporation to participate and contribute successfully to this new more sustainable economy, and ;(c.) Outline the impacts that this will have on the CEO’s governance of the company.
(A.)
Current Economic System
Growth is the all consuming objective in today’s economic system. Whether a capitalist nation such as the US and most of Europe, state-capitalists like China and Russia; the one unifying goal that links this global economic system is the idea and pursuit of continued growth.
Today’s global economy has grown to be five times larger than what it was fifty years ago. At current rates our economy would be eighty times the size by the end of the century, looking to support a global population exceeding nine billion (Jackson, 2010). The impact on the world’s ecological systems and climate threatens to be nothing less than catastrophic and the pressure on natural resources overwhelming. An entire school of economists, including Tim Jackson believe the current economic system and the reliance on continued growth is unsustainable (Jackson, 2010).
Current Economic Model
A brief simplistic model of how our current economic system works. Businesses and firms use inputs (raw materials, energy, technology, infrastructure, people, etc…) to produce goods and services. The revenue earned from providing these goods and services provide people with incomes. This enables people to buy these goods and services as well as save. These savings are then invested into firms and businesses directly or through the
Tim Jackson with his book “Prosperity without Growth,” has stressed the need to review our current economic system. The dominant economic model based on continued growth has brought humanity to the brink of social, environmental, and financial disaster.
Aim
The purpose of this report is to (a.) Explain the current economic system and identify conditions that may lead to a more sustainable economy; (b.) Create a vision and strategy for Colourful Corporation to participate and contribute successfully to this new more sustainable economy, and ;(c.) Outline the impacts that this will have on the CEO’s governance of the company.
(A.)
Current Economic System
Growth is the all consuming objective in today’s economic system. Whether a capitalist nation such as the US and most of Europe, state-capitalists like China and Russia; the one unifying goal that links this global economic system is the idea and pursuit of continued growth.
Today’s global economy has grown to be five times larger than what it was fifty years ago. At current rates our economy would be eighty times the size by the end of the century, looking to support a global population exceeding nine billion (Jackson, 2010). The impact on the world’s ecological systems and climate threatens to be nothing less than catastrophic and the pressure on natural resources overwhelming. An entire school of economists, including Tim Jackson believe the current economic system and the reliance on continued growth is unsustainable (Jackson, 2010).
Current Economic Model
A brief simplistic model of how our current economic system works. Businesses and firms use inputs (raw materials, energy, technology, infrastructure, people, etc…) to produce goods and services. The revenue earned from providing these goods and services provide people with incomes. This enables people to buy these goods and services as well as save. These savings are then invested into firms and businesses directly or through the