“Sustainable Growth” Wasn’t

There’s something that bugged me about this article (indeed, bugs me about most economic analyses of our current crash). Amidst a discussion that fairly lays out some of the problems with the global economy (all the while ignoring that one critical issue in the US is a gutting of manufacture and unions and therefore increasing inequality), it talks about how to rebalance the global economy so as to return to “sustainable growth.”

What it failed to create, however, was the kind of virtuous cycle of growing sales, growing profits and growing employment, all feeding off of one another, to keep the economy growing even as the stimulus wears off — “escape velocity,” to borrow a term from aerodynamics.

[snip]

The truth is we’re in something of a trap. Until imbalances are corrected, the U.S. and global economies are unlikely to return to robust and sustainable growth. And yet to the extent that we address these imbalances, the correction process will inevitably be a short-term drag on an already weak economy.

I mean, aside from Pearlstein’s blind reverence for the market, he’s right about the notion of balance. It is true, for example, that the newly rebalanced globe, America will play a smaller role as the consumer of last resort.

But it’d be nice if, at the same time as analysts think about rebalancing the global economy, they’d consider what their idea of “sustainable growth” meant in the past–and what it would mean in the future if it continued unchecked. After all, the sustainable-growth-that-turned-out-to-be-unsustainable of the last 60 years of a globalized economy caused climate change which will be an increasing drain on even a growing economy as disasters become worse and more frequent.

The spending on unnecessary consumer goods, the transportation miles driven, the dietary patterns, the waste. Those things caused climate change. Those are the things economists would like to return to, if slightly adjusted around the globe.

Since we’re going to be spending the next couple of years trying to find “sustainable growth,” do you think we could also keep in mind what would be truly sustainable for the globe?

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bmaz We spoke to John Napier Tye, the US govt's ideal new whistleblower. https://t.co/DWu1y465XU @JasonLeopold shows "proper channels" is a joke
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bmaz I know everybody got a thrill off of Preet's Cuomo letter, but it really doesn't look like all that really. http://t.co/AvUi4gt44k
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emptywheel @nickmanes1 Also, is it just safe to ASSUME this guy is all paid up on his John Birch dues? @JPughMI @jenn_bowman
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emptywheel @nickmanes1 Where's the political thesaurus that lists Progressive Dems of America next to Communist Party USA? @JPughMI @jenn_bowman
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emptywheel @Ali_Gharib Hey, rugby & ultimate both serious sports, often competing at higher level than other sports. But no drug testing.
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emptywheel @Ali_Gharib But that doesn't include club sports like rugby and ultimate frisbee. Flawed study! @washingtonpost
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emptywheel @sarahjeong But on the other side you'll be free to tweet about eating dogs forever.
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emptywheel @sarahjeong That's not what Pando says.
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emptywheel @sarahjeong Does reminding you that bc HLS you're gonna rule the world and we should be wary of you as a result count?
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emptywheel @stm555 Neither's really "amusing." It's just...predictable. Plus, I think Thornberrry looks like Littlefinger, and he'd do this too.
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emptywheel Love how Mac Thornberry thinks it's "common sense" for defense contractors to pre-bribe him b4 he becomes HASC chair. http://t.co/09ENiu0gFZ
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bmaz RT @ChrisGunness: UNRWA is overwhelmed in #Gaza we have reached breaking point, our staff are being killed our shelters overflowing. Where …
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