Degrowth

Under degrowth is a withdrawal of the consumption and production growth understood with such economic growth is to be met then, if it is socially, environmentally, economically and politically harmful. In the degrowth, the representatives of this concept see a measure against the environment and resources about incriminating growth.

Historical development

Even John Maynard Keynes predicted a permanent slowdown in growth for this case and gave policy recommendations. As thought leaders in recent history for the representatives of décroissance and the critics of uneconomic growth are Nicholas Georgescu - Roegen, Ivan Illich and André Gorz.

The first comprehensive critique of the exponential economic growth is the study The Limits to Growth, which was published as a report to the Club of Rome in 1972, which made headlines worldwide. She points to the potential consequences of unrestricted growth of Ecology and society due to the limited resources and the over-exploitation of existing natural resources. Following the revision of 2004 resulted in most scenarios, the study calculated an economic collapse 2030-2100.

The results of the study have since been discussed contrary.

Justifications

While growth has constantly leads to new innovations and more efficient technology, however, many critics view as negative developments such as increasing risk appetite, increased competitive pressures, progressive monopolization, declining product quality, declining wages, increasing debt, exploitation of natural and social resources or to produce dubious new needs. While goods that went beyond the basic needs, were formerly consumed in moderation, they should be consumed in aging economies in masses, to keep the growth going.

With a view to the increasing globalization is criticized that the consequences would have significantly tightened unlimited -growing countries, since China, India, Russia and the Baltic States have entered into the market economy.

Growth criticism

Various economists, philosophers, political scientists, scholars from other disciplines, writers, business journalists, politicians and anti-globalization protesters, environmentalists and Freiwirtschaftler voice criticism of the economic growth; in particular to an exponential growth.

Considered system theory, any growth in nature is limited physically, so that an unlimited increase automatically leads to the destabilization of the affected system. On the transfer of economic growth, critics therefore fear big problems for the economy, society and environment. Dr. Hans Diefenbacher, Senior Research Fellow of Economics at the Research Institute of the Ev. Community study in Heidelberg provides, for example, the following figures to illustrate the impossibility of unlimited growth: "A growth of only 1% already represents a doubling of economic output in just 72 years; growth of 4 % ( as occurred in the 1970s and 80s ) causes a doubling in just 18 years. A regular growth at this level would be after seven generations found 1000 times the basic amount! "

Especially in times of economic crisis such as the oil crisis of the 70s or the international financial crisis starting in 2007 is seriously discussed whether an economy " quite function without growth and at the same time bring quality of life ."

The currently valid economics school of thought ( paradigm ) presents particular relationships between growth, employment security and prosperity ago (see, eg economic growth than wishful thinking ). This results in the public debate often to be skeptical of any growth criticism. Kay Bourcarde, director of the Institute for growth studies, but seen in recent years a very considerable increase in interest in a generally critical engagement with the exponential economic growth.

During the growth discourse is conducted at the macroeconomic level for many years, there have been few attempts to Wachstrumsneutralität and redemption conceptually based on the enterprise level to translate. The possible role of enterprises, their business models, strategies, management styles and their options for action in the post-growth society needs further investigation.

Economic growth and quality of life

The gross domestic product per head applies to economists as an indicator for the prosperity of a country's population.

That economic growth and its measurement in the gross domestic product actually is to map the standard of living or even the quality of life of the population of a country, but is often doubted.

Criticism of the growth models

In all growth theories are models, not representations of real relationships. The deviation between models and reality is, for example, occupied with the development of the gross national product of the Federal Republic that not since 1950 - as requested - exponentially, but actually only grew linearly (see graphic " growth curves Germany "). This in turn is equivalent to a percentage lower growth rates. The decline in growth rates is the opinion of the critics referring to the impossibility of permanently exponential growth "neither economic nor political related but inherent in the system ".

Against this background, it is called for in different ways to adapt the models to the real conditions. The prevailing economic theories should not lead to a " growth imperative ". The mathematician Jürgen Grahl indicates that exponential growth in nature, for example the growth of bacterial cultures or in tumors, ie in primitive or pathological processes is observed, which eventually fail due to their inherent dynamics. Therefore, he warns that operate in economic models with exponential growth. The Swiss economist Hans Christoph Binswanger calls for a comprehensive modernization of the 'neo-classical equilibrium model ", which still was based as the foundation of modern economics on a traditional peasant economy of the 19th century. A few - especially the followers of the free economy - come for a radically different economic models without growth.

In the words U.S. economist Paul Romer: ". The basis for healthy growth are better recipes and not always larger amounts of the same ingredients" The "system- structural " approaches can be summarized as follows:

• From quantitative to qualitative growth (eg higher quality, longer lasting, more environmentally friendly products )
• From quantitative to selective growth ( grow some areas, while others stagnate or shrink )
• Sustainability as a new model of economic policy

Coupling of growth and interest rate

The economics postulated in the long-term trend is also a constant interest rate to be slightly below the growth rate and is linked to this. From 1950 to 1980 was followed by the actual development of this guidance. Since 1980, however, the interest rate remained roughly constant despite declining real growth rate and has been higher (inverse interest - growth differential by Stefan schoolmaster ). This is critical for growth- economists consider a systemic consequence of exponential growth, but the lead on the other side to exponentially growing financial assets and interest flows. If the interest rates are higher than the growth rate, it is more profitable to speculate with money instead of so real to invest, so that these funds would be withdrawn from the real money circulation. In this context is often highlighted the value of a Tobin tax.

Compounding effect and growth imperative

" Now I finally have realized that not economic growth generates the Zinseswahnsinn, but that the interest rate is the only true and real reason that the world has gone mad of eternal growth. "

Lorenz has here a factor towards being led mainly by the free economy in the context of a wide-ranging critique of capitalism: the compounding effect. He leads according to this doctrine necessarily lead to exponential growth of debt on the one hand and the interest-bearing balances on the other side. The economy would ipso facto permanent growth under compulsion, for from the generated power must the interest burden can be paid.

The transfer of the simple thought experiment of the " Joseph Pfennig " as " the " is an example of an impossible exponential economic growth tempting ( see chart). The reality is much more complex and the actual operations are not fully investigated. Therefore, most critics refer to the compounding effect much more cautious in their considerations.

France

In France, degrowth is discussed below where popular art word " décroissance ". This gives a critical consumer movement has developed, for which there is no equivalent in the German-speaking countries. As one of the French representative of this concept to Serge Latouche. About degrowth is debated widely in France, to President Nicolas Sarkozy. The French Décroissance movement is comparatively radical and rejects not only the " growth imperative ", but also a Green New Deal.

Germany

In Germany, former politicians and top managers as Kurt Biedenkopf or Klaus Wiegandt lead the beginnings of a growth- critical debate. Subdued growth criticism of German President Horst Koehler found little echo among the parties.

Scientific growth critical concepts, among others, economists such as Niko Paech ( post-growth economics ), Gerhard Scherhorn, Adelheid Biesecker, Sabine Hofmeister, Uwe Schneidewind and the Swiss Hans Christoph Binswanger be addressed. They are based on the strategy of sufficiency and the partial dismantling of industrial supplies, in particular global division of labor value-added processes in favor of strengthening local and regional self- supply pattern. The results also include approaches to money and land reform.

The Association for Ecological Economics has established itself since its 2010 Annual Conference with the theme " economy without growth " as the first growth- critical science association. In your mission statement, it represents a scientifically based approach to replace the economic growth policy by the post-growth economy. In May 2011, coordinated attac in cooperation with the Friedrich -Ebert -Stiftung, the Heinrich Böll Foundation, the Rosa Luxembourg Foundation and the Otto Brenner Foundation in Berlin a conference under the title " Beyond the growth ?". The Journal Oya reported in 2012 from a first networking meeting for young initiatives.

Since the financial crisis from 2007, declining real wages, growth collapses in the economy, Shrinking Cities are detected and mostly complained in policy and research. The sociologist Ulrich Beck speaks of a coming " company of Less ". The imperative of this new approach is to accept shrinkage and shape. Here, a paradigm shift is emerging both in perception and in the discussion.

Great Britain

The British economist Tim Jackson, former head of the Advisory Council for Sustainable Development of the British Government, argues in his book " Prosperity without growth" [ Original Title: Prosperity without Growth ] the thesis for the highly developed economies of the western world is prosperity without growth is not an utopian dream anymore but a necessity. He doubts the possibility to decouple the primary energy consumption of the economic performance and recommends a new term prosperity and a redistribution of work.

USA

Despite the term " uneconomic growth" is in the U.S. under " uneconomic growth " growth understood beyond its harmful effects on the pure inefficiency. The formerly working for the World Bank economist Herman Daly defined this type of growth as an increase in growth at the expense of resources and quality of life. In contrast to a withdrawal of the growth Daly relies on qualitative growth.