Post to UN NGO thematic consultation on: Environmental Sustainability and Equality

Why growth is now driving inequity,
not the reverse

A popular but mistaken idea is that what is needed to relieve inequity and the food crisis, is a restoration of long term economic growth.   Now that the economy is beginning to press ever harder on the fundamental limits of the earth’s resources, the exact opposite effect is taking place, as growth efforts cause competition to intensify for shares of less and less available resources.

We’re at the limits of cheap resources.  That’s the line we crossed.   So to provide the supplies demanded by the most profitable and fast growing sectors of the world economy, resources need to be taken away from the less profitable sectors, causing them to stop growing and go into ever greater debt.

The evidence of that happening in how the commodities markets have exhibited 10 years of escalating prices for essential food and fuel resources.  That directly indicates the transfer of resources from weak to the strong competitors, that the resources available are going to those who can afford higher and higher prices.  That is greatly adding to the other strains causing the food crisis and the world debt crisis, both experienced as “increasing inequity”. Continue reading Growth lifting all boats, no longer →