A New Economcy

To whom it may concern,

As the world braces itself for near zero growth in 2009, governments across the world are struggling to prevent people from falling into poverty, provide social services, and even prevent civil unrest. Zero growth equates to a halt in economic expansion. This continued expansion is what has been purported to provide prosperity for a growing number of people and families. Wealth, however, is a matter of distribution. As the world population continues to grow, the economy must grow with it to supply these new citizens with jobs, goods, and services. There is more than enough food produced each year to feed world’s population, but the poor cannot pay, and, therefore, it is not distributed to them. There is certainly more than enough capital to invest in basic human services, but there is no return on investment in upgrading a shanty town’s infrastructure. In essence, there is virtually no economic will for equality. And continued growth correlates to negative indicators as well, such as pollution, land consumption, resource depletion, and environmental degradation. The resolution of this crisis is beyond bringing it back to the former levels of production and the old ways of doing business. The public’s behavior has changed, and we need to adjust our systems accordingly. On a global level, we should redefine our economic policies and practices. We should focus now on sustainability instead of growth, and on equity instead of supply and demand. We do not need socialism, or capitalism or communism, or any other “ism” as we currently understand them. We need something new. While the principles of capitalism have gone unchanged for over 200 years, the market has dramatically changed even in the last decade. It seems that globalization and the clashing of many mixed-economies has created a new dynamic that requires a new global theory of economics. Where is our generation’s John Maynard Keynes? Why is a zero growth model not considered sustainable? At this point and time, will this administration work with the world to facilitate a change in global financial policy to the point where the goal of growth is replaced with the goal of sustainability?

GUNNAR HAND, AICP