The Significance and Limitation of Degrowth: Degrowth As an Alternative for Climate Crisis

Last month(May), the consumer price index increased 9.1% and US Federal Reserve hiked the interest rate by 0.75%. These all expressed concern about recession.

 

Recession means, in the vocabulary of Forbes, a nation’s economy experiencing negative gross domestic product (GDP). It usually involves increase in unemployment and decrease in consumption. Since recession commonly threatens national economy, almost all nations have watched up any sign of recession. 

 

People who advocate degrowth, however, have insisted nations shouldn’t excessively focus on increase in GDP. They have even argued that nations embrace some decrease in GDP. GDP, they think, doesn’t matter to the quality of life since GDP measures only what is valued at money. That reformative theory which challenges to the existing system of capitalism, has attracted attention as climate crisis becomes more severe and rapid.

 

 

What is Degrowth?

 

Capitalism is growth-oriented. In the pursuit of economic growth, production has been encouraged and consumption considered as virtue. But, is it possible for the economy to grow forever?

 

Cho Young-jun(2021) explains that degrowth is based on these four criticism of economic growth. ①Growth is not economically efficient at least in developed countries. ②Growth contains unjust components such as the disparity between gender, classes and nations. ③Well-being hardly improves when growth reaches a certain level. ④Growth is unsustainable in terms of ecology.

 

Jason Hickel(2021), an economic anthropologist says in his book, Less Is More, the existing system requires more consumption of resource and energy. He also insists that it is only rich people who get a benefit of growth, allowing the rich to be richer and the poor poorer.

 

Hickel participated in making “The Green New Deal for Europe” with other degrowther and emphasized Green New Deal should exclude growth in it. He argues, according to recent study, it is possible to ensure decent quality of life for 10 billion with 60% less energy by 2050. He also suggests concrete ways: reducing production unnecessary and ecologically destructive, shortening working hours, expanding public goods and distributing income fairly.

 

Cho explains another four suggestions: grass-roots economy, welfare system without growth, local business voucher and politics for degrowth. The grass-roots economy includes regarding use value as more important than exchange value, substituting volunteer works for wage works so as to discourage them to be commercialized and some achievements that can be reached and shared in small society. The welfare system includes job security, basic income or job sharing.

 

However, There’re some criticism of degrowth. Some opponents of degrowth say that without growth, society would collapse and confusion would occur in light of the idea that continuous growth is a core of economy. They argue that growth is necessary for nations not to be isolated in global economy and to decrease unemployment rate. In addition, it is often criticized that degrowth doesn’t have clear and detailed vision by advocates for the Green New Deal.

 

 

What We Should Do

 

We cannot waste time anymore in present situation that climate crisis is just around the corner. However, there is not a complete alternative for the crisis yet, whether degrowth or the Green New Deal. It is important to examine defects of suggested alternative and complement the suggestion with more valid ideas. Unfortunately, we don’t have enough time. The process of examination should be conducted promptly. Then the action has to be taken in time, otherwise an irreparable consequence would follow.

 

 

June 18, 2022

© Lee Sihu (keepedia06@gmail.com)

 

 

References

 

Cho Young-jun. (2021). “Growth Supremacy and Degrowth Society”. Journal of Korean Philosophical Society. p. 187-213.

Kim Hyeon-u. (2022) 「기후위기의 현실 대안으로서의 탈성장(Degrowth as a Viable Solution for Climate Crisis)」. 문화과학(Culture Science). p. 93-107.

Hickel, Jason. (2021) Less Is More. (Kim Hyeon-u & Min Jeonghui, Trans.). Changbi Publishers. (2021).

Rodeck, David & Curry, Benjamin. “What Is A Recession?”. Forbes. July 12, 2022. (Retrieved at July 18, 2022.).