DeepEconomy

byBillMcKibben

Deep Economy by Bill McKibben

07/12/15

Source: Deep
Economy web site
Professor Wayne Hayes

Purpose
Theintentofthispresentationis
toguidethestudentthrough
DeepEconomybyBillMcKibben.
Theauthorbringsasubtledesigntothebook.
Trytograsphismessages.
Hestartswithavigorouscritiqueofeconomicgrowth
andmovestolocalismandcivilsocietyorganizations
asanalternativetoeconomicglobalization.
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These themes
build an eco-economy.
1. Questioning growth derived from exports
2. Development > growth: Do better with less.
3. Promoting local economies around diversity and
within Nature.

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Notice the Anthropocene and the Age

of Accelertion.
Chapter 1, After Growth, begins with the steam
engine and the invention of the idea of economic
growth in the late 18th century, which we know as
the Anthropocene.
McKibben introduces the equivalent of the Age of
Acceleration after World War II on page 7.

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TINA and its antidotes soon follow.

There is No Alternative (or TINA) was the
prevailing empire of the mind (p. 9, 10). The
response cited included Limits to Growth and
Small is Beautiful.
McKibben summarizes his response on pages
11 and 12. Also see pages 35, 38, and 41.
We will discuss in class.

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Not everyone is happy

with the economy.

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Not everybody approves of

capitalism, either.

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Hayes Economist, 4/7/2011

Source: CapitalismsProfessor
Waning Wayne
Popularity,

Nor is everyone optimistic

about their future.

Pew Research Global Attitudes Project, October 9, 2014

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McKibben offers a short course in

ecological economics.
McKibben assails the macro-economics of
growth. Dont confuse Gross Domestic Product
with well-being.
He notes the side-effects not counted in market
transactions, the externalities.

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Context:CosmopolitanLocalism
TothinkofBillMcKibbenasparochialbecauseheeatslocally,asin
chaptertwo,wouldmisshispoint.HestartsinVermont,butendsup
inAfghanistan,Bangladesh,India,andChina.Hegoesglobalwiththe
simplelessonsoflocaleconomies.Hebringstolifemanyofthe
themesthatcombineecology,economics,community,andethics.
Thatiswhatyoushouldtakeawayhere.
RememberthequotefromWendellBerrythatexplainedthatthework
ofsustainabilityissmallandhumble.McKibbendemonstratesthat
pointanddedicatesthisunpretentiousbooktohisfriend,Wendell
Berry.
McKibbenclaimsthatcommunityandlocalizationprovidethe
antidotetoeconomicgrowthbasedonglobalization.
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ContextofDeepEconomy
1. Questioningthesystemicimperativetogrowthisfundamentalto
WorldSustainability.Wehavequestionedeconomicgrowthand
identifiedmuchoftheglobalcrisisonthedynamicsofgrowth.
TheLimitstoGrowthimplicitlyprovidesanunderlying
alternativeparadigm.
2. MoreisnotalwaysBetter,apivotbasictoDeepEconomy.We
mustdistinguishbetweenqualitativedevelopmentandphysical
growth,abasictenetoftheeconomicsunderlyingsustainability.
3. McKibbenwillartfullyconnecttheglobalwiththelocalandthe
GlobalNorthwiththeGlobalSouth.Hewillarguestronglyfor
decentralizedeconomicactivitywithinadurableeconomy.
McKibbendoesnotusetheterm,butthisisallaboutworld
sustainability.
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EconomicAlchemy
"Howcantheeconomybeharnessedtoservesustainability?What
makesthisquestionsoironicisthatthegrowthinthephysicalscale
oftheeconomyundertheprevailingregimeofeconomic
globalizationhasdepletedresources,destroyedecosystems,
overwhelmednaturalwastedisposalsinks,wagedwaronsubsistence
cultures,andproducedshockingmaldistributionofwealthand
income.How,then,cantheeconomybeturnedaroundtoreinforce
sustainabledevelopmentratherthantodestroyecosystems,resource
endowments,andindigenouscultures?Thisalchemymustbe
resolvedtopromotesustainability."

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EconomicAlchemy(continued)
McKibbencontributestowardthatalchemy.Hechallengeshead
ontheconsensusaroundandtheideologyofeconomicgrowth,the
mantraofeconomicglobalization.Hechartsanotherpath,onebased
onlocaleconomiesandcommunity.
Onlybygettingthroughthebooktoitsconclusionscanthereader
appreciatethevisionandthedeeperanalysisthatlieshiddenby
McKibbeninthisengagingbook.
Keepanopenmindandmakethevitalconnections.

Questioninggrowth
McKibbenoffersthreeobjectionstothestandardeconomistic
treatmentofgrowth,allofwhichshouldbefamiliartoyou:
1. Theallegedgainsofgrowth(totheextentthattheyreallyexist)
notonlygototheelitesbutfailtobenefitthemajority.Thisraises
questionsofinequalityandofinsecurity.
2. Theecologicallimitstogrowtharemounting:resourcesare
beingdepleted,sinksareoverwhelmed(e.g.,CO2),andcarrying
capacityexceeded.Thisdefinestheconditionofovershoot.
3. Significantly,economicwealthdoesnotproducehappinessor
fulfillmentgrowthisoverratedonitsownterms:"growthisno
longermakingushappy"(1).ThisassertionisbasictoDeep
Economyandshouldbeessentialtowhatyoutakeawayfromthis
book.
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ThemesinDeepEconomy
Notesomeofthecontrastsimpliedinthebook:
Fromglobalizationtolocalization(butwithmarkets)
Frommasssociety,massproduction,massconsumptiontolocal
communitieswithinbioregionsatanappropriatescale
Fromhyperindividualismtocosmopolitancivicengagement
Fromexclusiveemphasisonprivatepropertytowhatisshared,
thecommons
Frompoliticalexclusivitytoinclusivityarounddirectdemocracy,
suchastownmeetings
Fromhighlevelsofexternalitiestolowsocialcoststhrough
communityinvolvementthatnegotiatesbigdecisions
Fromexportmaximizationtoadiverselocalandregional
economythatdirectlyservesthelocalpopulation.
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ListentoBillMcKibben

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Discuss:
ThelessonsfromDeepEconomycanbeliberating.McKibben
observesthat"greaterwealthnolongermakesushappier"(2).
Youcanleadasatisfyingandmeaningfullifewithoutcovetingriches.
Youcanlivewellandleadalifeofconsequence.
Thisessentialinsightopensupopportunitiesandpossibilities.
Askyourself:Howdoesthisinsightaffectme?
Letspausetotalkaboutthisinsight.

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Ch.1:AfterGrowth:mainpoints
1. Growthisahistoricalinventionmadepossiblebycoalandother
fossilfuelsthatweassociatewiththeIndustrialRevolution.We
knowthisastheAnthropocene.GrowthisenshrinedintheWest,
particularlytheUSA.(Actuallyitisthelaw:TheEmploymentAct
of1945nodepressions,please.Theprincipleofeconomic
globalizationwasembeddedintheBrettonWoodsagreement.)
2. Readcarefullytheempiricalcasemadeonpages11and12.
3. Contrastthepositionsofthesetwoeconomists,LarrySummers
(26)andBobCostanza(27),onhowtounderstandgrowth.
4. McKibbengoesinternationalinmakinghiscase,pp.3442.

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Ch.2:TheYearofEatingLocally
BillMcKibbentellshisstoryofeatinglocalproduceforayearinhis
homestate,Vermont.Alongtheway,hecritiquesthefoodand
agricultureindustries.Helearnsmuchfromtheexperience.
Hemakesasubtlepoint:You,too,canchangeyourlifeforthebetter
byproducingsomeofyourownfood,eatinglocally,andeating
smart.MakessensefortheGardenState.Thinkaboutit.
McKibbenmakesfoodthebasisofrebuildingtheeconomyandthe
culturearoundlocalism.Heenrichesoursenseofplace.
Giveattentiontohisconclusion,p.94.
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Images of the Intervale CSA,

Burlington, VT

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Intervale, CSA

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Calkin family farm

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Food Day

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Community Supported Agriculture

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Food Depot at Intervale CSA

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Inside Food Depot

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The economic model:

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Ch.3:AllforOne,orOneforAll
AgainspeakingasaVermonter,McKibbencritiquestheerosionof
thevaluedanduniquecharacteroflocalculture.Thiscontrastswith
hisstoryoneatinglocally.
Heoffersdatatomakethecaseofthefragmentationandthe
dysfunctionalityofhyperindividualism,pp.101104.
McKibbensmessageissimplyoneofcaringandsharingaround
community.Thisisbasictopromotingsustainabilityfromthe
groundup,fromlocalroots.

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Theremedy:community,convivialityand
companionship
Contrastthefarmers'marketorCommunitySupportedAgriculture
(CSA)forcommunitybuilding.McKibbenurgesthatweturntothe
localforarichercommunitylifeandculturethatcomplement
nurturingthelocaleconomy.
Toomuchstuffandnotenoughcompanionship,saysMcKibben.Shift
theemphasisfrombeingaconsumertobeingacitizen.Participate.
Leadanactive,engagedlife.Thisisbestdonewhereyouliveand
work.Connect.Starttoday.
McKibbenbasesthischapterontheworkofRichardLayard,an
economist,andhisresearchinhisbook,Happiness.Seepages108
112.
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Ch.4:TheWealthofCommunities
McKibbenusestheexamplesofClearChannelandWalmartto
illustratehowcommunitiesareeclipsed,withtangiblelossesthatare
noteasytoquantify.
Hisremedy,again,istherestorationofcommunitythroughre
buildinglocaleconomicactivitiesandinstitutions.Hespeaksagainas
aloyalandpatrioticVermonter.
HecitestheNewEnglandtownmeetingandtheintermediatelevelof
scalebetweentheindividualandthecommunity.Scaleandlocalism
resonatethroughoutthischapter.

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Ch.5:DurableFuture

McKibbengoescosmopolitanhere,takingusallthewayfrom
VermonttoChina.(Whatheseesisconsistentwithandoften
informedbyLesterBrown.)Somepointstoconsider:
1. Everyyear,30millionpeopleleavetheruralareasandmigrateto
overcrowdedcities.
2. Waterhasbecomethelimitofthecarryingcapacitytosupport
growth.Soilis,aswell.
3. Everyyear,Chinaaddstheequivalentofthepopulationof
Californiatoitsenergygeneratingcapacitymostlybyburning
coal.(Wewillseelaterinourcoursethatthisischanging.
4. Chinadevotes10%ofGDPtodealwiththeenvironmentalside
effectsofeconomicgrowthandtopublichealth.
5. Since2005,Chinahasbeenanetimporterofgrain.
McKibbenasksonpage187:"howonearthdoyougrowattherate
theChinesearegrowinganddon'tcollapse?"
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Dasgupta:WealthasLiquidation
McKibbenquotesfromtheresearchofSirParthaDasgupta,a
UniversityofCambridgeeconomist,thatwealthindeveloping
countriesactuallydeclineswitheconomicgrowththroughoutthe
world,page190.Chinaistheonlyexception.Dasgupta'sresearch
goesfrom19651993,capturingtheheydayoftheeconomicgrowth
oftheWashingtonConsensus.
Thisdramaticpointillustratesthefailureoftheorthodoxeconomistic
growthmodel.
Ofcourse,inequalityincreasessharplywitheconomicgrowth,p195.

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Othercases
McKibbenquicklyreviewsothercasesinwhicheconomic
globalizationbackfires:
Mexico:corn;
Uganda:coffee;
Iraq:seeds.

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DeepEconomyisLocallyRooted
McKibbendrawsagainonhisexperienceasacitizenoftheworld.
HiscasestudyofsuccessisfoundintheNayakrishiAndolan(New
Farming)movementinGorasin,Bangladesh.
Hisreport,pages200206,culminateswithatellingexampleoflocal
knowledgeusedtoincreaseproductivitywithecoecologicalmeans.
TechnicallythiscommunitybasedsubsistenceprojectreducesGDP,
sincethefoodandrestorationisnotproducedforthemarket.(No
wonderit'scalledgrosseconomicproduct!)

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China:HeiferInternational
McKibbenprovidesanothersuccessstory,pages207210.This
comesfromSichuanprovinceinChina,wheretheNGOHeifer
Internationaldonatedrabbitsandtechnicaladvice.Theresultsare
stunning.Histakeawaylesson:
"It'sthattherearewaystomakeworkableeconomiesoutofalmost
anything,ifyouthinksmallandworkthroughcommunities"(207).
McKibbencallsthis"thekeytaskofourtime"(210).

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FutureGenerations

McKibben'snextcaseisFutureGenerationsanditsdevelopment
expert,DanielTaylor,fromWestVirginia.Tayloradvocatesnot
investingmoney,butmobilizingandinvestingavailablehumantime
andenergythroughacommunitydesignedworkplan.

Thecasestudy,pages211216,occursinAfghanistan,certainlya
contestedandgeopoliticallysignificantcountry,andinHimalya,
India.

HefollowsupwithKerala,India,pages218221.

McKibbenconcludeswithacontrastoftheeconomicmodelofthe
USAversusthatofEurope,oneworthyofsomeconsideration,
especiallyaswestrugglethroughourepicrecessiontoday.
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Happiness Index

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Afterword
Theconcludingchapterbeginswithsomeofthethemesfoundearlier
inourcourseinBrown,PlanB4.0:
1. Peakoil;
2. Globalwarming:McKibben'searlierDeathofNaturewasa
harbinger;

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Conclusion
Thebookmodestlyendswiththeessentialalchemy,theinversion
withintheeconomy:
"Localeconomiescanplayanimportantroleinreducingthese(peak
oilandglobalwarming)problems."
McKibbentellsusthatthepathtoadurableeconomycanbesweet
andaddjoyandfulfillmenttoourlives.Itthreatensandriskslittle.
Hehasaddressedthesystemicfaultsofeconomicgrowth:ecocide,
inequalityandinsecurity,andunhappiness.Smallwonderwhyhe
dedicatesthisinsightfullittlebooktoWendellBerry.

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What makes you happy?

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Maslows hierarchy of needs:

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Sowhatdoyouthink?
DoesMcKibbenworkforyou?
WhatdidyougetfromDeepEconomy?

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