Growth criticism

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Growth criticism is an umbrella term for several concepts that criticize the social, political and entrepreneurial goal of economic growth . The possibility, meaningfulness and desirability of economic growth is questioned. One of the theses of the growth critique is the statement that from a certain level an increase in the gross domestic product is no longer expedient in order to achieve goals such as prosperity or social justice . In addition, the negative effects such as higher consumption of natural resources and environmental degradation would mean that planetary boundaries would be exceeded . In some countries a growth-critical movement has emerged as a social movement . Criticism of growth is expressed from very different perspectives and differs depending on the region and political orientation.

Reasons for Criticizing Growth

Ecological limits: is sustainable growth possible?

some planetary limits are exceeded
Sustainable Development Goals , number 8: Sustainable economic growth and decent work

The environmental-based critique of growth, which is still dominant today, emphasizes the finiteness of the planet and its limitations in providing natural resources and processing human emissions. Their core message is: "Infinite growth is not possible on a finite planet." Humans have had such a serious impact on ecological processes as no other species before (cf. Hemerobia , Anthropocene ) and already now their ecological footprint is too high, as shown by scientific studies on global environmental changes and future scenarios since the 1950s. With reference to concepts of bioeconomy and ecological economy , a reduction in economic activity is unavoidable, since the environment can only provide limited resources and has only limited capacity. In " The Limits to Growth " the authors wrote:

“It now turns out that these difficulties ultimately have a common, quite banal cause: our earth is not infinite. The more human activity approaches the limits of earthly capacities, the more visible and insoluble the difficulties become. "

- Dennis Meadows

Permanent / unlimited exponential growth is therefore ecologically unthinkable on earth. Since 2009, these aspects have also been discussed under the heading of Planetary Boundaries .

The central question that has been controversial for decades is whether economic growth can be decoupled from the consumption of natural resources and emissions. Opponents of the growth critique argue in this regard that natural resources, such as oil or other raw materials , are limited, but not the ability to innovate and creativity of people themselves. These could ultimately also replace the scarce resources themselves with new, innovative technologies , such as this is the case with renewable energies (see also factor substitution ). Such continuous technical progress would push the limits of growth, which may have seemed insurmountable decades earlier, steadily upwards again. In this respect, every technology may have a limit to growth, but not the entire economy as such. In fact, it is even a core component of the market economy to distribute scarce resources as effectively as possible and to replace old technologies with new, disruptive technologies in a process of creative destruction . In this way, humanity would have shifted the limits of its growth several times in its history , for example with the Neolithic or later with the industrial revolution . Since then, economic growth has made the prosperity in which we live today possible and will also be necessary in the future in order not only to maintain it, but also to increase it, with a population that is still growing (albeit more slowly) .

However, growth critics deny that the replacement of natural resources through innovation is possible to the extent that it is necessary for sustainable development. Accordingly, they argue that economic growth opposes sustainable development and is therefore incompatible with one another. The reasons for this are, for example, rebound effects , the importance of entropy ( Nicholas Georgescu-Roegen ) or of energy as a production factor. There would be improvements in resource productivity in individual countries, but the problems would be shifted locally through trade to other countries or postponed into the future, for example with climate change . Ultimately, the limited resources would mean the end of growth.

Social boundaries: is sustained growth desirable?

From the 1970s on, the social limits of growth were discussed parallel to the ecological limits. The finding of happiness and satisfaction research , according to which an increase in per capita income after reaching a certain level does not trigger any further increase in happiness or subjective well-being , became known as the Easterlin Paradox . The core thesis of the socio-economic growth critique is therefore that further economic growth in the industrialized nations will not improve the quality of life .

Fred Hirsch explained this phenomenon with position competition . Thorstein Veblen had already spoken of validity consumption in 1899 . The use of many goods is of a symbolic nature, and consumption is used to distinguish them from others, which creates social hierarchies. Certain consumer goods become symbols of family, friendship, belonging, community, identity, social status and goals in life - and a high income becomes essential for prosperity. It is not individual material wealth that counts, but comparison with others. Accordingly, at the individual level, increasing income is a desperate attempt not to fall behind in competition, but economic growth does not solve this social problem, because an increase in consumption no longer increases personal satisfaction.

It is discussed what an individual way out of this dilemma could look like. Hartmut Rosa emphasizes in his books Acceleration and Acceleration and Alienation that people are trapped in a cycle of consumption and acceleration. People should overcome the acceleration-driven competitive principle of late modernity and instead live in " resonance " with the world. Similarly, Harald Welzer takes the position that growth is anchored in people as a mental infrastructure, and that rethinking and resistance are necessary.

The social limits of growth have already been discussed by John Maynard Keynes . In 1930 he wrote about the “economic possibilities of our grandchildren” and viewed stagnation not as a catastrophe, but as an opportunity for a “golden age”. He calls for redistribution , reduction in working hours and the provision of public services.

Criticism of economic growth as a political goal

Worldwide gross domestic product per capita 1500 to 2003
Growth Curves: Exponential or Linear Reality?

The perceived ecological and social limits of growth led to criticism of the worldview of the “quantitative growth paradigm”, according to which “all economic, social and political problems can be solved primarily with economic growth”. The gross domestic product (GDP) measures the value of goods and services produced within a certain time period in a country. In economics , GDP per capita (among others, such as the Human Development Index ) is considered an indicator of the prosperity of a country's population. In fact, gross domestic product also shows a very high correlation with other socio-economic indicators such as life expectancy , infant mortality or education . Its increase is accordingly a globally recognized, economic and political goal (cf. Magical Square ). However, it is controversial whether it can and should be used as the (sole) indicator of welfare .

Growth-critical representatives doubt that the gross domestic product is suitable for depicting quality of life and prosperity. Herman Daly coined the term "uneconomic growth", the uneconomic growth, the damage of which is greater than the benefits. On the one hand, GDP also includes harmful activities, such as environmental destruction or clean-up work after environmental disasters, while the above-mentioned ecological and social aspects are often not taken into account in the calculation of GDP. There would therefore be a need to develop and apply alternative indicators of prosperity that take into account aspects such as strengthening human relationships, democratic participation and protecting ecosystems and improving distributive justice. The Stiglitz-Sen-Fitoussi Commission or the OECD are also adopting the perspective of replacing the gross domestic product with new indicators or adding them to them , although they do not combine this with a fundamental critique of growth. Examples of this are the human development index , the real progress indicator, or the social progress index .

Other authors also emphasize that empirically economic growth is not exponential anyway, but at most has grown linearly. This in turn is equivalent to a percentage drop in growth rates, which is "neither economic nor political, but inherent to the system ". Therefore, one has to think about dealing with falling growth rates anyway.

Theory of compulsion to grow

At the lecture series on the post-growth economy in Oldenburg, Andreas Siemoneit (Managing Director of the Growth Turnaround Association) presents free-market ways out of a forced growth

The theory of forced growth claims that growth-dependent social institutions make it impossible to turn away from growth as a political goal. A growth compulsion describes a factual compulsion according to which economic growth is so essential that ecological, but also certain social goals must be systematically subordinated to it. It is disputed what the compulsion to growth actually consists of, how macroeconomic and economic policy conditions must be designed for zero growth and which reforms and political measures would be expedient for this. The controversial question that follows is whether a market economy without capitalism is conceivable and sensible. For example, the compound interest effect or technical progress that forces entrepreneurs to invest and innovate and at the same time always harbors the risk of unemployment and thus endangers the social security systems is discussed . Growth policy is then the only realistic political option if you want to prevent mass unemployment.

Criticism of capitalism

A larger current of growth criticism is explicitly critical of capitalism and refers to the socialist works of Karl Marx , Rosa Luxemburg , eco-Marxism and anarchist- inspired criticism of rule . You see in capitalist accumulation and the increase in productivity the need for growth. Every crisis of capitalism immediately creates a social crisis. Other parts of the growth critique “shy away from or ignore” the critique of capitalism.

Criticism of industrialism and technology

This trend criticizes the modern industrial society based on machine work . This was anchored in capitalism as well as socialism and destroys nature and ensures the alienation of people.

Feminist criticism

The feminist critique argues that the vital work of reproduction in society focus on the economic performance and the Homo economicus would invisible and devalued. These activities, however, provide the basis without which wage labor and economic exchange would not be possible. The understanding of economy must therefore go beyond the market and money-mediated economy.

Criticism of the global development model

High income countries are highlighted in color.

The "South-North Criticism" deals with the effects of development theory from a globalization-critical justice perspective. Inspired by the post-development theory and concepts of political ecologists , growth critics with a cultural background question the idea that the Global South should follow the development model of the rich industrialized countries . It is doubted that global issues of justice and distribution can be overcome through economic expansion and that it is desirable that the inhabitants of the global south get the development of the north imposed on them. Instead, it would create new neo-colonial dependencies. However, the poorer countries should not be forbidden from developing their own solutions, which should not rule out limited growth (up to the ecological limits). Representatives of the culturalist growth critique include Ivan Illich , André Gorz and Serge Latouche . Many newer concepts within the growth-critical movement focus next to culturalism on questions of democracy , justice or the meaning of life and the well-being of people and the environment, for example based on the model of Buen Vivir .

Suggested solutions

So far, concepts such as qualitative growth , the blue economy , green economy , green growth or the green new deal have been proposed, which should make economic growth possible within ecological limits. With the Sustainable Development Goals , the member states of the United Nations have also agreed on a catalog of actions with which they want to achieve sustainable development and an increase in the standard of living for all people.

According to the growth critics, renewable energies and new technologies are not enough.

The above-mentioned alternative growth strategies focus on improving consistency ( circular economy ) and eco-efficiency . The core idea is that an energy, resource and environmentally friendly economic upturn can be achieved by means of suitable political framework conditions. The role of the state is either to bring about this change with appropriate regulatory and tax policies, or to invest in innovative technologies itself. Examples are investments in energy-efficient buildings, in renewable energies or the expansion of public transport . Another benefit of such investments is the creation of new jobs. Some representatives (for example Erhard Eppler or Holger Rogall with the term “selective growth”) also integrate the third strategy, sufficiency , in the sense that some sectors such as the fossil energy industry would have to shrink.

However, some growth critics also find fault with these concepts. Qualitative or green growth is utopian , a paradox or an oxymoron or contradictio in adiecto , which binds different contradicting interests and strategies together and puts them in context. The supposedly “green” upswing only increases consumer demand and continues to drive the “growth spiral”. Another problem with efficiency and consistency measures is that the new technologies may require fewer resources and energy to be used than before, but new resources are required for the manufacture of new production systems. The plan to repair ecological damage through innovations while no one individually has to forego consumption is therefore not feasible.

One approach for sustainable business without growth (szwang) is the economy for the common good , which relies on cooperation instead of competition and is mainly promoted by Christian Felber , a founding member of Attac Austria .

As a hypothetical, very long-term solution strategy for overcoming planetary growth limits, futurologists are also discussing the possibility of space colonization . If our home planet, the earth , would really reach its capacity limits at some point, humanity could still continue to grow through the population of foreign worlds.

Historical development of the growth critique

A stationary economy without growth has already been discussed by some representatives of classical economics . John Stuart Mill saw a desirable end state in steady-state. John Maynard Keynes saw a permanent slowdown in growth as a positive outlook for the future.

In 1966, the American economist Kenneth E. Boulding used the term spaceship earth in the title of his essay The Economics of the Coming Spaceship Earth . His text, which wanted to provide a theoretical foundation for a non-growth-oriented economy, has been widely accepted by ecological economists and growth critics. The environment-based growth critique, which is still dominant today, began in the 1970s. One of the pioneers was the American mathematician and economist Nicholas Georgescu-Roegen (1906–1994), who made connections between thermodynamics and economic processes and derived a general critique of growth from them. The 1972 report to the Club of Rome entitled The Limits to Growth was viewed as a comprehensive criticism of the consequences of economic growth . The controversially discussed report, translated into 29 languages, presented the possible consequences of unlimited growth for society and the environment, assuming that the earth's resources are limited and that they are being overexploited. As an alternative to economic growth, various concepts have been worked out that aim to stabilize or reduce economic production and consumption . This should lead to an increased well-being of people and the environment on a local and global level as well as across generations . Early 1970 published Herman Daly as an alternative to growth, the concept of stationary economy (Steady-State Economy).

Even before, but especially since the publication of The Limits to Growth , growth-critical perspectives have also been criticized themselves. After the growth-critical debate grew stronger after the global financial crisis , Karl-Heinz Paqué and Ralf Fücks , for example , published explicit arguments for economic growth. Also Rainer Hank argues growth creates wealth and freedom and not growth is a "fetish" but the criticism of it. These questions were discussed politically, for example in the study commission on growth, prosperity, quality of life and the debates about an amendment to the Stability and Growth Act (StabG). Also within the growth-critical debate there is a criticism of the theoretical one-sidedness or the normatively charged and ideological debates in which “growth criticism and pro-growth thinking are opposed to one another like articles of faith”.

Demonstration at the end of the fourth degrowth conference , Leipzig, 2014

In various industrialized countries over the decades, but especially from 2008, a growth-critical movement emerged as a social movement made up of activists and scientists who criticize the prevailing development model. While there is broad consensus that maintaining the ecological balance of the earth requires a reduction in material production and resource consumption and that social and economic changes are necessary for this, the trends and positions are quite diverse and sometimes contradictory. In contrast to a reduction in growth forced by the depression , the growth-critical movement calls for a planned and sustainable growth reduction that is democratically agreed by society and replaces growth as the primary goal of economic policy. The process of reducing growth should continue until a state is reached in which the consideration of intact social and ecological conditions is equally guaranteed. Within the social movement it is, in turn, controversial what an alternative objective looks like and how it should be implemented in practice.

literature

Web links

Commons : Degrowth  - collection of images, videos, and audio files

Individual evidence

  1. ^ Felix Holtermann: Between Utopia and Implementation: The Criticism of Growth in Political Discourse. LIT Verlag, Münster 2016, ISBN 978-3-643-13507-0 , p. 31.
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