Lecture 19Outline of Last Lecture I. Communities and our FutureII. Local EconomyOutline of Current Lecture III. Deep EconomyIV. GrowthV. Change for the FutureCurrent LectureSupporting Deep Economy-growth is no longer making people welathier-the american middle class is no longer the worlds richest- NY times articleSOA 240 1st Edition1. Why? 3 Factors:educational attanment in US has risen much more slowly than in much of industrial world2. companies in US distribute smaller share of bounty to middle class/poor than similar companies elsewhere3. governors in canada/west europe take more aggressive steps to raise take home pay of low/middle income households by redistributing in-comeHistorical Economies 101-economic resolution of 1776- adam smith-it is not the actual greatness of national wealth, but its continued in-crease-economic effort and growth equated with moral progress-increased efficiency equaled progressThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best-post WWII economic boom-1961-1965: GNP grew by more than 50% living in poverty dropped by nearly halfThe Lure of the Growth Machine-current system means any faltering of growth quickly leads to misery- reces-sion, etc.-endless growth allows us to avoid hard choices-George W. Bush: we can have tax cuts and protect social security, tax cuts stimulate economic growth, no need to chooseChallenges to Growth-3 fundamental challenges to the fixation on growth:-political: growth is producing more inequality that prosperity, more in-security that progress-reducing energy supplies and rising pollution-growth no longer makes us happy-suggests we can no longer act wisely simply by asking which choice will pro-duce morePolitical Objection to Growth-economy continues to grow, but we have little to show for it-earnings fell 5.2% from 2000-2004 for those with 4 year college de-grees-2008-2009: per capita income in IL dropped by 3.5%-more than 80 countries have seen per capita income fall in the last decadeWhy Growing Economy, Less Wealth?-decline in unions-technology and computerization/automation-ideology of growth and policies: NAFTA, GATT-those who report on the growth tend to benefit the mostFuel For Growth: Cheap Fossil Fuels-cheap, concentrated power lies at the heart of modern economy-new limits to cheap power-peak oil:-point in time when max rate of oil extraction is reached, after which rate of production is expected to enter terminal decline-depletion of earths natural capital-climate changeEconomic Growth and Environmental Destruction-getting rich means getting dirty-rise in GOP brings rise in air pollution, water pollution, etc-some technology can mediate these problems (cleaner coal, filters, scrub-bers, etc.)-deeper form of environmental degradation, too many of us all want the same things-doing too much of something, not necessarily doing it betterCarbon Emissions-rate of growth fuel greater carbon emissions despite more effiecient ma-chines-emergence of the consumer class economy-chinas air quality-more efficient stuff, but more quality of stuff-not just one TV per home, not just one car per home, etc.New Measures of Economic Health and Success-ecosystem services: setting a value for the services provided by our ecosys-tem-pollination, clear water, decomposition-Green Nation Product-subtracts for pollution or disease-measuring happiness and satisfactionHappiness and Satisfaction-proportion of survey respondents saying they were very happy peaked in 1950s-decreased steadily ever since-we have more stuff, less happiness-income and affluence are less important thatn family, health, friends, to our happiness-increased income only increases happiness to a certain levelHyper Individualism-we have exceeded our ability to balance opportunity with responsibility-affluence isolates us even more-the more money we have, the less we give ourselves to our community- andit shows-overall quality of american schools has declined, lagging behind other devel-oped nations-overall health status comes below most other developed nations-have worlds highest proportion of population in prisonChange For the Future-shifting to economies that are more local in scale, community based-recreating the connections, social capital-research shows that consumers have 10x as many conversations at a farmers market than they do at a supermarket-a change in you economic life produces an enormous change in your social