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Brian Czech

Brian Czech

Posted: February 8, 2011 12:10 PM

He's finally done it. Barack Obama has taken the tantalizing trail to a notoriously slippery slope. In an op-ed for the Wall Street Journal recently, the President promised, "federal agencies [will] ensure that regulations protect our safety, health and environment while promoting economic growth." In other words, we will have our cake [the environment] and eat it too [for economic growth], and federal agencies will be there to dish it all up.

Obama was explaining the executive order he issued that day (January 18) and touted in the State of the Union address. The order was clearly designed with political convenience in mind, and who could begrudge him a bit of that? He is, after all, a politician. However, the order -- and the rhetoric used to describe it -- could tarnish his legacy as a true defender of the environment and the economy.

For much of his first year in the White House, the President steered clear of fallacious win-win rhetoric. His economic and environmental agendas had clear and separate goals. His economic focus was on rescuing the financial system and creating jobs. He seldom used the phrase "economic growth," and there was even some evidence that he supported a "paradigm shift" away from unsustainable growth toward a truly sustainable steady state economy. Meanwhile, he promised to protect the environment, period, and the BP oil spill gave him a platform (pardon the pun) to put the environment first.

Some would argue that Obama was necessarily promoting economic growth when he bailed out the banks and called for job creation. But they wouldn't necessarily be right. Bailing out banks and saving the insurance industry was necessary for stabilizing the financial system, which needed to happen with or without economic growth. It was needed especially to protect the modest lives of relatively innocent borrowers and customers (even though wealthier swindlers benefited too).

As for jobs, it is true that GDP growth is seen as a job creator through the lens of conventional economics. Technically, though, more jobs can be created while capital expenditures decline. In other words, employment can increase without growing GDP, and a president can call for more jobs without promoting economic growth. Such "labor intensification" has its limits, naturally enough, but it can solve short-term unemployment problems while more important issues are dealt with.

And what issues are more important than full employment? For starters, how about full employment for your kids, say five years from now, or for your grandkids in a couple of decades? How about the environment -- air, water, soil, minerals, timber, fisheries, etc. -- the foundation and building blocks of the economy? How about the other species on the planet?

Unfortunately, it's too easy for critics to hone straight in on "other species" and rant, "Who cares about other species -- we're talking about the economy!" But we better care, because these other species are like canaries in the coalmine of the grandkids' economy, and we've been shooting them down like targets at a county fair. Splat goes the spotted owl, poof goes the polar bear; 1,372 federally listed species on the ropes and, with very rare exceptions, down for the count. And what took the environmental building blocks from these unfortunate flora and fauna?

It's not a mystery. The causes of endangerment in the U.S. are well-documented. They're a veritable Who's Who of the American economy. They reflect a human economy out of control, sweeping across the countryside, wiping out the economy of nature and using up the building blocks faster than new ones can be crafted by Mother Nature or imitated by Monsanto.

Yet for decades we've been subjected to the rhetoric that "there is no conflict between growing the economy and protecting the environment." Though developed by environmentalists hoping to counter opposition to environmental protection, such rhetoric backfires incessantly. It results in policies (such as regulation-loosening executive orders) that allow us to pluck the grandkids' goose while presuming to protect it.

Fortunately, the days of this rhetoric are numbered. Recent research has demonstrated conclusively the fundamental trade-off between economic growth and environmental protection, as so many prominent scientists have agreed. The trade-off is fundamental because it is based on physics and ecology.

What we need now is a president who will parlay this knowledge into public support for policy reform. The President can clarify once and for all that we can't have our cake and eat it to. Can you almost hear him? "We need to balance our concerns about environmental protection with our concerns about full employment, and that doesn't square with growth everlasting. What we need is a healthy, steady state economy balanced with a healthy environment, not an overgrown economy and a shrunken environment."

How would a president and other policy makers help concoct a steady state economy, even if it was publicly supported? First, policies designed to "grow the economy" would be discontinued. Next, steady state policy tools (such as resource capping) would be employed. There is no shortage of policy options. But the horse must come before the cart. The steady state economy has to be a goal with widespread public support before a suitable policy framework can be constructed. Presidential leadership is needed to generate such support. Then, with widespread public support, a steady state economy would be engendered from the "demand side," too, with temperance trumping conspicuous consumption. In other words, with widespread public support, less policy reform would be required for establishing a sustainable steady state.

It's not too late for Obama to be the Truth Teller in Chief. He's tested the slippery slope of win-win rhetoric -- gotten his foot muddied a bit -- but he hasn't committed himself to a mudslide yet. The trade-off between economic growth and environmental protection is perhaps the most inconvenient of all truths to acknowledge, but it's better than a full slide down the slippery slope of green growth rhetoric. That could be a legacy breaker.

 
He's finally done it. Barack Obama has taken the tantalizing trail to a notoriously slippery slope. In an op-ed for the Wall Street Journal recently, the President promised, "federal agencies [will]...
He's finally done it. Barack Obama has taken the tantalizing trail to a notoriously slippery slope. In an op-ed for the Wall Street Journal recently, the President promised, "federal agencies [will]...
 
 
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Sandgnat
Embrace the Lunacy
07:05 AM on 02/09/2011
In a country where verifiable scientific truths (the progression of evolution and the negative climatic impacts of too much CO2) get trounced by incoherent religious dogma like Adam and Eve and the end times, I fear your plan is doomed, Mr. Czech. Anyone speaking sustainable ecology over constant employment here in 'Merica is comitting political suicide.
But the earth has a way of ridding herself of organisms that consume more than they should, and we are no exception. The scale of time involved might be beyond human comprehension, but it's impossible to outwit nature.
02:40 AM on 02/09/2011
We must change our transportation system with efficiency less than 1%.
Person (weight 200 lb) mostly alone is driving in car (4000lb) with efficiency of engine - 30%, efficiency of gasoline production less than 45%.
We must change our electricity production-in power plant we losing 80% of fuel energyheat energy in vain.
We must grow forests for wood energy in new power plants, where we could use as heat, as electricity.

It will help economy and environment, make North America energy independent, and create 100% jobs, for engineers, scientists, workers and farmers.
09:24 AM on 02/09/2011
Under no circumstances should wood be burned to generate electricity! It takes two units of wood energy to produce one unit of coal energy. A better use of wood energy would be to heat homes with superefficient (~85%!) woodburning stoves. As for our electricity needs, we should focus on reducing our need for it with efficiency improvements and creative lifestyle changes (root cellars, bike powered washing machines, romantic candle lit dinners occasionally, more windows in buildings etc), and generate what we do need with renewable sources.
Vegsister's comments below about stabilizing population growth is also extremely important, since each person born carries energy and resouce needs that will need to be met. A reduction in our population size will lead to a better quality of life for all people and all species because the finite planetary resources will not be stretched so thin.
12:09 AM on 02/10/2011
Dear Emily,
"It takes two units of wood energy to produce one unit of coal energy."
“Energy content of wood fuel (HHV, bone dry) = 18-22 GJ/t (7,600-9,600 Btu/lb)
Metric tonne coal = 27-30 GJ (bituminous/anthracite); 15-19 GJ (lignite/sub-bituminous) (the above ranges are equivalent to 11,500-13,000 Btu/lb and 6,500-8,200 Btu/lb).”

Wood - (7,600-9,600 Btu/lb)
Coal (bituminous/anthracite) - 11,500-13,000 Btu/lb
Coal (lignite/sub-bituminous) -6,500-8,200 Btu/lb).
The best coal/wood = 13,000/9,600=1.35; 1.35 ton of wood by energy equal 1 ton of coal.
My average suggestion 1.6 ton of wood by energy equal 1 ton of coal.

"supereffic­ient (~85%!) woodburnin­g stoves" are really good, but they emit carbon dioxide.
It is difficult economically from every home take this carbon dioxide.
For power plants it is possible. Together with ash it will be the best nutrition to grow forest.
Efficiency of most appliance right now around 25%. If we improve efficiency to impossible 100%, it will mean, that 4 times more people will live on level of middle class in USA.
For the world population it is not enough.
Solar cells, windmills to provide electricity 24 hours during 365 days, needs batteries and usual grid, what makes them twice as expensive.
Production of their construction, batteries emitt additional carbon dioxide.
Population in developed countries are most growing in the world, and we can't influent there, at least in near future.
02:12 AM on 02/09/2011
The elephant in the room here is that we're competing with countries whose environmental laws are comparable to the U.S., pre-1960. Corporations go offshore not just for cheap labor, but to dodge environmental policy. Unless we're able and willing to act as one global comunity with regard to this issue, we can look forward to a "shell game" in which serious polluters just move from one safe haven to another.
Of course the real power for change--or its obstruction--rests in the hands of corporations, with their massive political war chests. Those of us with stock porfolios AND an environmental conscience had better look hard in the mirror. We are the ones we seek.
10:35 PM on 02/08/2011
Thanks for contributing this vital perspective. The notion of the steady state economy is based on the common-sense principle that infinite growth is not possible within a finite system--a notion that is fundamental to ecologists, though economists have been a bit slower on the uptake. The notion is also the guiding force behind the Global Population Speak Out, a month-long effort to raise awareness of the consequences of unchecked human population growth.

Let us remember that while Western-style consumption is responsible for its share of species endangerment, climate destabilization, pollution, and overexploitation of resources, population growth adds its own kerosene to these growing infernos. And if we are successful in halting, eventually reversing, human population growth, we may ensure that moderate economic growth is an ecological possibility in those parts of the world where it is necessary to allow for a reasonable standard of living. A key aspect of looking out for the grandkids is ensuring that every grandkid is wanted, and that those who do not wish to have grandkids (or kids) have access to the education and family planning resources that afford options in this critical area of human well-being.
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HUFFPOST SUPER USER
silverwolf13
I know that I do not know.
07:24 PM on 02/08/2011
We live on a finite planet, which cannot accommodate infinite growth. We need to talk about that.
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Eileenla
Author, "Sacred Economics"
11:40 PM on 02/08/2011
Agreed. Though where we CAN grow is in wisdom, which takes up no more space and consumes no more calories than does ignorance. We can grow in skills, in passion, in vision, in imagination and in our capacity to redesign our society so we can do more -much more- with less. That's the win/win shift we need to make if we hope to thrive in the future.
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Malcolm Hensley
Last of the Reagan Republicans
04:19 PM on 02/08/2011
Mankind has often achieved steady state economies! The feudal system is an example. Of course there is no chance to achieve the American Dream.

With free Trade your concept is a step back to feudal times. In my Grandfathers time it was called Share Cropping, one or two hundred years before that it was slaves or indentured servants, before that serfs. I assume you already have a new name to call us already picked out with your economic plan.

My 10th grade world history teacher taught me there has always been cheap labor on the planet but the Industrial Revolution had to wait for the steam engine and cheap reliable energy!

Coal usage in North America and Europe has been basically flat between 2000-2007 however coal usage world wide has grown over 50% in the same period with most of that growth in Asia!

A Steady State Economy sounds good particularly to NIMBY (not in my back yard) environmentalist. However for things like mercury in our fish and concepts like man-made global warming it does very little.

A better system is a tax or tariff based on the manufacturing, transportation, and sustainability of products sold here.

Much better for the planet! It discourages fossil fuel usage.

Much better for workers because it encourages local production.

All winning results!
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Brian Czech
02:46 PM on 02/09/2011
Don't you think the key to a sustainable, steady state is widespread public support? Public support for a steady state economy would manifest in consumer behavior and in the necessary degree of macroeconomic policy reform. I believe the American constitution, for example, is conducive to a steady state economy as long as the democratic rider is smart and strong enough to ride the capitalist horse. (Some might call the result a “mixed economy.”) Good "horsemanship" would include the tax reforms you mentioned, too.
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Malcolm Hensley
Last of the Reagan Republicans
05:36 PM on 02/09/2011
First Mr. Czech thank you for replying.

I think unrestricted free trade is the opposite of what you desire. I believe Worldwide Free Trade brings out the worse in nations because the winners are those nations that will treat their environment and citizens the worse! I don't think the U.S. can go down this path alone without reverting back to a static agricultural society.

I believe we have learned that one of the most effective ways to alter peoples behavior is the tax code! People will go to extraordinarily lengths to avoid paying extra taxes.

That's why I believe we have a small window as the worlds largest customer to alter the behavior of everyone on the planet. By imposing a tax or tariff based on the manufacturing, transportation, and sustainability of products sold here we can not only transform our thinking but everyone's thinking about sustainability.

I think we both agree Sustainability should be the keystone to your steady state economy.
04:11 PM on 02/08/2011
Certainly, there has to be a reality factor in making these decisions. People do need to to work or we will have no society. But, I disagree that this marked a change of course for the President. I think the President started down that course when he left BP in charge of the Gulf oil spill. Perhaps he has never been the environmentalist he seemed during the 2008 campaign.
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Malcolm Hensley
Last of the Reagan Republicans
02:54 PM on 02/08/2011
Mankind has often achieved steady state economies! The feudal system is an example. Of course there is no chance to achieve the American Dream.

With free Trade your concept is a step back to feudal times. In my Grandfathers time it was called Share Cropping, one or two hundred years before that it was slaves or indentured servants, before that serfs. I assume you already have a new name to call us already picked out with your economic plan.

My 10th grade world history teacher taught me there has always been cheap labor on the planet but the Industrial Revolution had to wait for the steam engine and cheap reliable energy!

Coal usage in North America and Europe has been basically flat between 2000-2007 however coal usage world wide has grown over 50% in the same period with most of that growth in Asia!

A Steady State Economy sounds good particularly to NIMBY (not in my back yard) environmentalist. However for things like mercury in our fish and concepts like man-made global warming it does very little.

A better system is a tax or tariff based on the manufacturing, transportation, and sustainability of products sold here. Much better for the planet! Much better for workers because it encourages local production. It discourages fossil fuel usage. All winning results!
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Overtone
See bio on the Aesop Institute website
01:39 PM on 02/08/2011
Black Swan energy breakthroughs are being born and indicate we can have full employment and supersede fossil fuels far faster than conventional wisdom would suggest.

See Green Light at www.aesopinstitute.org to learn how and why.

Cost-competitive renewable technologies will produce millions of jobs

And we can accelerate their development and production.
03:07 PM on 02/08/2011
that is correct. the idea that environmental policy (in its current form) will kill business is just false. well, partially. isn't it a paradigm that comanies must adapt to change and adversity? R&D in so-called green technologies will spawn large numbers of jobs all the way down the pike and increase manufacturing. a move to renewable sources of energy will cost jobs as we move from old, archaic technologies to newer ones, but those jobs will be replaced two-fold by an ever-evolving sector that will do nothing but spur economic growth.
those in the petrochemical sector are the buggy whip makers of today. they will fight and have the money to fight, but if we choose not to fight them then they will drag all of us down with them and this country will fall into economic oblivion and leave it to other countries to be the leaders, movers and shakers in this new realm. do you really want that?
QuantProgrammer
Cap welfare benefits at two kids.
01:26 PM on 02/08/2011
In any case, I think our kids are going to care a great deal more about whether this country has jobs that pay a living wage than how many owls there are in the Redwoods. The Clean Air and Clean Water acts were desperately needed in this country- and we need to find ways to mitigate global warming, but honestly, is a spotted owl's nest really worth not constructing a factory that's going to create hundreds of jobs? Is the incredibly slight risk to polar bears from slant drilling that recovers oil under ANWR from a wellhead in Prudhoe Bay really worth giving up school buses and making our children walk to school through the cold?

There are environmental trade-offs to be made. But for stuff that doesn't directly harm our national parks or make the air we breathe unclean or water we drink unsafe, I think the answer for most Americans is pretty obvious- People, not owls.
03:19 AM on 02/09/2011
Fair enough, but what if your grandkids--or their grandkids--need that ANWAR oil? Oil is used for more than just cars, and some of those things will remain without viable alternatives for some time. The "artificial" tightening of resources by environmental regulation can sometimes have the beneficial effect of forcing us to research alternative materials and resources before they're completely exhausted... a point at which we may be out of options--other than war--as we all fight over the scraps.
01:25 AM on 02/10/2011
Our present rate of extinction of species is 150-200 species per day. Over ten years ago, when it was 100 species per day, TIME magazine listed the greatest threat to Earth was species extinction caused by loss of habitat. 90% of the big fish in the ocean are gone. Which species is increasing at a rate of 1 billion over the last 10 years? People. What is the environmental trade-off to secure a livable future for those kids you are concerned about? Human population control. Those owls can have as many babies as they want.
QuantProgrammer
Cap welfare benefits at two kids.
01:18 PM on 02/08/2011
Brian, it's called the production possibilities curve. There's an ultimate limit to the trade-off between the environment and economy, but we're nowhere close to that.

If we were to hit the PPC horizon, we'd have -0- paperwork and businesses would know they couldn't build stuff on swamps. However, we have myriad permits and paperwork to fill out, some of which duplicates other stuff. If we at least eliminate the duplication and redundancy of the protection, we can move closer to the PPC threshhold.

Not everything is a zero-sum game. If we have focus on a more efficient economy, we can have better lives with a smaller impact on the environment.

We owe it to our children to not be intellectually lazy. We owe it to our children to have a more efficient economy, more personal savings, and a less expensive government with less debt to hand off to them. Reducing government inefficiency- while maintaining environmental protection- is one way of doing this.
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Brian Czech
02:13 PM on 02/09/2011
I agree that we owe our kids some intellectual effort. That includes a rigorous assessment of the tight linkages among economic growth, technological progress, and environmental impact. The upshot of such an assessment is that efficiency gains are limited by the second law of thermodynamics (can’t reach 100% efficiency (much less >100%, which would also violate the first law of thermodynamics)), and that technological progress entails economic growth at current levels of technology. Economists and economic historians will recognize here a macroeconomic version of Jevons paradox: http://steadystate.org/techprogress/ . Put in the simplest terms, there is no free (technological) lunch, and there is a fundamental trade-off between economic growth and environmental protection.
01:50 AM on 02/10/2011
We very much owe it to future generations to act now to reduce our impact on them. Economic growth does and will cause environmental destruction. We can slow or stop economic growth and protect the environment by reducing our population, and thereby provide a livable world for our descendants. The number of "our kids" needs to be reduced. Not having any, or reducing "our kids" to "our kid" is really the way to show our love for them.