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shotmaster0  ·  3981 days ago  ·  link  ·    ·  parent  ·  post: Less Is More: Rogue Economists Champion Prosperity without Growth

I wish it was something more widely talked about. The issue isn't just measures of our economy its also how our economy works. For example, if a vandal goes around and smashes 100 windows, guess what, the economy grows! Replacement windows must be made which means workers and suppliers get paid extra and everyone starts buying a little bit more. The problem is that certain costs lie external to the economy. The true cost of those new windows isn't reflected in their price. The pollution it causes and (if the product uses toxic chemicals) the negative health impacts are not accounted for by the company. If the company can use 1 dollar per hour labor it will, even if those factories pollute more and its workers die from accidents/health issues. If no one ever accounts for these issues then the only way the company can make money is to sell new and more products. If external costs are internalized (like cap and trade programs, etc) then products that are environmentally sound and longer lasting can compete against cheap, polluting products. The other option is an informed consumer base that can account for all these different factors when they make purchasing decisions but that's difficult.