A canary in the coalmine – Editorial

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From May 15th to May 17th, I had the privi­le­ge of atten­ding the „Beyond Growth“ confe­rence at the Euro­pean Parlia­ment in Brussels. I agree with those who call it a histo­ric event. You can read why I think so in the artic­le in this issue. When Ursula von der Leyen refer­red in her opening speech to the Club of Rome’s legen­da­ry 1972 report, „The Limits to Growth,“ which called for a turn­around in econo­mic acti­vi­ty, my first thought was, „That’s hypo­cri­ti­cal!“ Of course, it was clever of her, and also fitting, to use that refe­rence to open a confe­rence aimed at show­ing ways out of an econo­mic mode programmed for infi­ni­te growth: „Beyond Growth“. The refe­rence to this work, to which the scien­tists Donella and Dennis Meadows contri­bu­ted signi­fi­cant­ly with their rese­arch and simu­la­ti­ons, seemed obvious. But it felt wrong to me when a repre­sen­ta­ti­ve of conser­va­ti­ve poli­tics appro­pria­ted this ground­brea­king work. The Presi­dent of the EU Commis­si­on has always appro­ved – and conti­nues to appro­ve – decis­i­ons that have led the world over the past 50 years to the threa­tening situa­ti­on we find oursel­ves in today.
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One of the conclu­si­ons of the Club of Rome at that time was: „Our present situa­ti­on is so complex and is so much a reflec­tion of man’s multi­ple acti­vi­ties, howe­ver, that no combi­na­ti­on of purely tech­ni­cal, econo­mic, or legal measu­res and devices can bring substan­ti­al impro­ve­ment. Enti­re­ly new approa­ches are requi­red to redi­rect socie­ty toward goals of equi­li­bri­um rather than growth. Such a reor­ga­niza­ti­on will invol­ve a supre­me effort of under­stan­ding, imagi­na­ti­on, and poli­ti­cal and moral resol­ve. We belie­ve that the effort is feasi­ble and we hope that this publi­ca­ti­on will help to mobi­li­ze forces to make it possible.“

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In the follo­wing 50 years, all the forces were mobi­li­zed to increase global econo­mic growth more than tenfold. With the asso­cia­ted „burning“ of resour­ces that had taken milli­ons of years to create. Mean­while, anyone who dared to speak of econo­mic equi­li­bri­um was pill­oried or simply igno­red by econo­mists and politicians.

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Helmut Creutz would have been 100 years old these days. He spent the last deca­des of his life coll­ec­ting data and visua­li­zing it in extra­or­di­na­ry graphics. In his work, one can find a major reason why the econo­my is condem­ned to perpe­tu­al growth. He showed that despi­te enorm­ous efforts, econo­mic output can „only“ grow line­ar­ly, even though growth rates are measu­red as if they were expo­nen­ti­al. This way of measu­ring has the conse­quence that an annual constant growth, e.g. of 10 units in rela­ti­on to the initi­al value of 100 in one year, leads to a lower percen­ta­ge rate, becau­se another 10 units in the second year lead to a growth of only about 9 % (10 in rela­ti­on to 110). In the prevai­ling econo­mics one speaks then, pain­ting the devil on the wall, of decli­ning econo­mic power. Helmut Creutz looked for a reason for this anoma­ly and found it in the deve­lo­p­ment of finan­cial assets. Their growth is deri­ved from econo­mic perfor­mance and did not proceed like econo­mic growth limi­t­ed by human perfor­mance, but much more strongly.

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While the world econo­my has grown tenfold since 1972, finan­cial assets have grown fifty fold over the same period. A finan­cial invest­ment does not care about the state of nature or the perfor­mance of people. Whate­ver offers the highest return is the jewel in the port­fo­lio of priva­te and insti­tu­tio­nal inves­tors, regard­less of the damage it causes. In order to meet the trend of the time, the emer­ald is conside­red a symbo­lic jewel for further „green“ capi­tal growth, without chan­ging the prin­ci­ple of expo­nen­ti­al growth of mone­ta­ry assets in the sligh­test. To make matters worse for huma­ni­ty, this wealth is uneven­ly distri­bu­ted and does not even ensure a mate­ri­al­ly balan­ced socie­ty. In the mono­po­ly of capi­ta­lism, money and power are concen­tra­ted in the hands of a few at the end of the game, while nature and the clima­te are destroy­ed and social cohe­si­on dissol­ves. The call for „limits to growth“ fades into the muck of the econo­mic and mone­ta­ry system. It does­n’t help if you hold this warning up to the sky in writ­ten form like a bible and still feel compel­led to act against it with your decisions.

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I would venture a compa­ri­son with the canary that miners took with them down to the mines. The little feathe­red friend was conside­red an early warning system, falling from its perch as soon as the color­less, odor­less nitro­gen oxide spread through the tunnel, displa­cing oxygen and poten­ti­al­ly killing the miners. The melting of the Earth’s glaciers and ice sheets, the droughts and floods, the extinc­tion of animal and plant speci­es by the milli­ons, and much more, do indeed frigh­ten people and seem to warn them. But they still do not leave the maze of the tunnel of the econo­mic system, becau­se they cannot or do not want to belie­ve that there is anything beyond the ruling system. They conti­nue to belie­ve that salva­ti­on can only be found under­ground in capitalism.

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I witnessed the more than 2,000 young people in Brussels, their will, their know­ledge and their invol­vement in orga­niza­ti­ons, compa­nies and local connec­tions. They sat in the seats of power and deci­ded: We want a no-growth economy!

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This gives me confi­dence becau­se I know that this goal is achie­va­ble if the exis­ting system is over­co­me. The insights of Helmut Creutz will play a role in this. His basic ideas about libe­ra­ti­on from the growth pres­su­re of capi­tal returns, leading to social and ecolo­gi­cal equi­li­bri­um, have been deve­lo­ped further and – as you will see in other artic­les in this issue – are reflec­ted in the various socio-ecolo­gi­cal models of socie­ty and the economy.

Yours since­re­ly Andre­as Bangemann
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