Herman E. Daly: Steady-State Economics

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But then I tell the students that back in the early 1960's we were using one-half the energy per capita that we're using now, and I ask how different life was in the early 60's. Well, I get a lot of blank stares—most of my students can't remember 1960—so I explain that people did have automobiles "way back then", they had TV's, and life wasn't really all that different from the way it is today . . . yet we were only using half as much energy as we do now! The U.S. today has only 6% of the world's population, but we use 30% of the world's energy!

PLOWBOY: So developed countries like the U.S. should be the first to adopt a steady-state economy?

DALY: For certain. We have to move from our present luxurious energy life-style toward a level of consumption that's lower, yet still sufficient for a good life. That line between sufficiency and extravagance is, of course, very hard to define. At this point, however, exactly where we draw that line is less important than is the basic acknowledgment that a line must be drawn.

PLOWBOY: What about the underdeveloped countries? Isn't it hypocritical for America to tell such nations, "Don't grow. Don't try to be like us?"

DALY: Of course. It doesn't make sense for us to urge a steady-state economy—at least at current economic levels—on countries like Honduras or Guatemala . . . because such lands are still impoverished.

However, it does make sense to urge limits to population for those countries. In other words, developed nations must limit both birth rate and per capita consumption, while underdeveloped countries should control only their populations: The per capita consumption of the poorer lands is going to have to grow for a while before it can be fairly stabilized.

PLOWBOY: Professor Daly, you've presented a very sensible case for the steady-state economy and how it could work. But, to be honest, it's hard to believe that most people would ever try such a system! After all, you're saying that poor countries would have to be willing to limit population, rich countries would have to do without some luxuries . . . and everyone would have to acknowledge a limit to economic growth, and work together to leave some of our planet's resources for future generations. All in all, your plan sounds pretty idealistic!

In the past, it was just plain easier to have a lot of freedom than it's going to be in the future with either a steady-state or a forced-growth economy.

DALY: You're right to point out such difficulties. And I, for one, would certainly not want to run for president on a steady-state platform ... it would be a sure recipe for defeat. People are simply not yet ready to accept a steady-state economy.

But the fact remains that men and women need to be taught if they're to change. There was a time when steady-state arguments had no effect on me, yet the logic of such systems eventually did convince me. And I'm not totally unique. My thought processes are similar to those of other rational beings.

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