Sustainable development

Home / / How to proceed in the debate of growth: a fallacy, no alternative or are there “new future visions“ after all? - conference with Mathias Binswanger

How to proceed in the debate of growth: a fallacy, no alternative or are there “new future visions“ after all? – conference with Mathias Binswanger

Download(s)

Considerations of further action
Powerpoint presentation in german of M. Binswanger

… was the title of the conference with Mathias Binswanger, one of Switzerland’s most influential economists. Unfortunately, the planned exchange between Mathias Binswanger and Ulrike Herrmann, TAZ journalist, could not take place as Ms Herrmann had to cancel at short notice. As a result, the event had a different focus to some extent, although Mathias Binswanger’s presentation was discussed in a lively and critical manner in the subsequent series of questions and over drinks. A brief report and thoughts on continuing the discussion:

What does “exponential growth” actually mean in concrete terms? In this context, Mathias Binswanger spoke of the insanity of the “compulsion to grow” and argued that, according to current analyses, “growth in rich countries does not make people happier and more satisfied on average”. However, according to the speaker, “we must continue to grow in order for the economy to function”.

The lack of relationship between economic growth and human happiness was convincingly explained by the speaker.

However, the speaker’s focus was clearly on demonstrating that growth is inherently linked to the current economic system. He then formulated what at first glance appears to be a somewhat contradictory thesis: growth is no longer desirable – but unfortunately unavoidable

He illustrated this conviction with the following statements:

“The following elements are central to the growth imperative in modern capitalist economies:

– These are money economies where companies must make a profit by having revenues exceed costs.

– There is competition between companies and thus a constant need to be better than the competition (Marx’s coercive law of competition).

– There is technical innovation, which constantly makes new products and processes possible (Schumpeter’s process of creative destruction).

Just like the “dilemma”

“The dilemma

– Today’s economic system forces us to continue to grow, even though in reality people have no need for even more consumption.

– Growth enables the majority of companies to make profits in the long term and the state to run up permanent debts.

– Without growth, the system enters a downward spiral.

– However, growth does not make people in highly developed countries happier and is a burden on the environment.”

– Today’s economic system forces us to continue growing, even though people have no real need for more consumption.

– Growth enables the majority of companies to make profits in the long term and the state to remain permanently in debt.

– Without growth, the system enters a downward spiral.

– However, growth does not make people in highly developed countries happier and is a burden on the environment.”

Ultimately, the speaker’s main demand was to advocate new forms of company organisation. His thesis is that if companies have a chance to escape the pressure to grow, the entire economy could be reorientated. According to the economist, the reform of public limited companies “as the most important driver of expansion (maximising shareholder value)” would be key. More co-operatives? More foundations? … are his questions.

In conclusion, Mathias Binswanger drew parallels between Switzerland and Luxembourg. Both are dependent on the labour force of the Greater Region, settlement pressure is increasing, etc. The focus was on the following thesis: “Aiming for the highest possible growth, which only leads to a small increase in prosperity (GDP per capita) and is detrimental to quality of life and the environment, makes little sense.”

He does not believe that the system could be completely reorganised and would rather advocate moderate growth in certain sectors and gradual reforms (such as those to the corporate structure). His view: demands that are too “radical” are counterproductive. This is because they ultimately lead to no changes being made at all …

And further: “So far, nobody knows what an economic system without growth would ultimately look like. We should work towards this in concrete, realistic steps.

This rather pragmatic approach by the speaker understandably triggered lively discussions among the numerous members of the audience. Some of those present had the impression that his theses were similar to those of growth advocates …. Others, however, welcomed his technical and pragmatic approach.

Ultimately, the lecture should be seen as a further contribution to the overall growth debate. There is probably not THE speaker who puts THE model on the table. To enrich the discussion, you will find subjective conclusions based on previous discussions above …. They should also contribute to enriching the discussions within the Mouvement Ecologique.

And Mathias Binswanger’s conference will certainly not be the last. The aim is to secure a very solution-orientated speaker for another lecture. Let us surprise you.