Solutions from the Green Economy

Got this article from an email list, with the instruction to put it on my blog, with the enticement of being back-linked. I thought, "ok, just put it up, and get backlinked", but once I read it, I knew I had to add some comments to what is on here. My comments will be in blue.


Solutions from the Green Economy
January 15, 2008
Everyone now understands that the economy is broken.
While many name the mortgage and credit-default-swap crises as culprits, they are only the most recent indicators of an economy with fatal design flaws. Our economy has long been based on what economist Herman Daly calls “uneconomic growth” where increases in the GDP come at an expense in resources and well-being that is worth more than the goods and services provided.  When GNP growth exacerbates social and environmental problems—from sweatshop labor to manufacturing toxic chemicals—every dollar of GNP growth reduces well-being for people and the planet, and we’re all worse off. Not only is this true for the U.S., but even more keenly felt in other nations where the employment options are less diverse, and the government is less reserved about ravaging the land for natural resources.
 
Our fatally flawed economy creates economic injustice, poverty, and environmental crises. It doesn’t have to be that way. We can create a green economy: one that serves people and the planet and offers antidotes to the current breakdown. The "new economy" also needs to have an eye towards sustainability, and developing industries that are do not need to worry about depleting the resources they need.
 
Here are six green-economy solutions to today’s economic mess.

1. Green Energy—Green Jobs
A crucial starting place to rejuvenate our economy is to focus on energy. It’s time to call in the superheroes of the green energy revolution—energy efficiency, solar and wind power, and plug-in hybrids—and put their synergies to work with rapid, large-scale deployment. This is a powerful way to jumpstart the economy, spur job creation (with jobs that can’t be outsourced), declare energy independence, and claim victory over the climate crisis.  Yes, this is a huge goal, and very undefined as of now, but will become more refined and palpable. Besides the environmental incentives, a major economic incentive is to free the nation to develop further, without worrying about the constraints of energy.

2. Clean Energy Victory Bonds
How are we going to pay for this green energy revolution? We at Green America propose Clean Energy Victory Bonds. Modeled after victory bonds in World War II, Americans would buy these bonds from the federal government to invest in large-scale deployment of green energy projects, with particular emphasis in low-income communities hardest hit by the broken economy. These would be long-term bonds, paying an annual interest rate, based in part on the energy and energy savings that the bonds generate. During WWII, 85 million Americans bought over $185 billion in bonds—that would be almost $2 trillion in today’s dollars.
This idea is.....intriguing, considering the current state of the economy and the market's love of steady bonds, regardless of return.
 
3. Reduce, Reuse, Rethink
Living lightly on the Earth, saving resources and money, and sharing (jobs, property, ideas, and opportunities) are crucial principles for restructuring our economy. This economic breakdown is, in part, due to living beyond our means—as a nation and as individuals. With the enormous national and consumer debt weighing us down, we won’t be able to spend our way out of this economic problem. Ultimately, we need an economy that’s not dependent on unsustainable growth and consumerism. So it’s time to rethink our over-consumptive lifestyles, and turn to the principles of elegant simplicity, such as planting gardens, conserving energy, and working cooperatively with our neighbors to share resources and build resilient communities. This goal is more on the part of citizens, requires sacrifice and self-denial.

4. Go Green and Local
When we do buy, it is essential that those purchases benefit the green and local economy—so that every dollar helps solve social and environmental problems, not create them. Our spending choices matter. We can support our local communities by moving dollars away from conventional agribusiness and big-box stores and toward supporting local workers, businesses, and organic farmers. Many areas would find this hard to do, without a farmers market or CSA (community supported agriculture).

5. Community Investing
All over the country, community investing banks, credit unions, and loan funds that serve hard-hit communities are strong, while the biggest banks required bailouts. The basic principles of community investing keep such institutions strong: Lenders and borrowers know each other. Lenders invest in the success of their borrowers—with training and technical assistance along with loans. And the people who provide the capital to the lenders expect reasonable, not speculative, returns. If all banks followed these principles, the economy wouldn’t be in the mess it’s in today. This one is pure pipedream. Community investing is usable on small scale, but for a nation, a national lending system is needed, but with more transparency.

6. Shareowner Activism
When you own stock, you have the right and responsibility to advise management to clean up its act. Had GM listened to shareholders warning that relying on SUVs would be its downfall, it would have invested in greener technologies, and would not have needed a bailout. Had CitiGroup listened to its shareowners, it would have avoided the faulty mortgage practices that brought it to its knees. Engaged shareholders are key to reforming conventional companies for the transition to this new economy – the green economy that we are building together.Unless a major stockholder attempts to influence company policy, shareowner activism is nearly impossible.
It’s time to move from greed to green. Who says greed can't motivate green??
--Alisa Gravitz