product to reflect much slower growth in the early stage, and then stagnation sets in
starting in 2028. The assumption is that government interventions such as income
redistribution and other government measures are placed in effect, as well as a
reduction in the weekly working hours. The following effects are to be expected: The
unemployment and poverty rates will initially grow and then fall well below the
starting level by 2035. The debt and greenhouse gas emissions will decrease by 30%
compared with 2005 and stagnate at a low level from 2018 onward.
Victor has a preference for scenario 3, which he thinks is realistic with deliberate
application of economic policy measures. Central to his prediction is the reduction in
total and average working hours. In addition to reducing the work week, the target
includes a broader distribution of work to a larger number of people. The effect
would be an increase in the employment rate. However, this scenario has to take into
account that a number of measures cannot be fully implemented because certain
interest groups in society would oppose the measures. Victor believes that his model
could not only be developed and implemented in Canada but, in principle, also in
other industrialized countries.
Critics of the low grow model pointed out that the effects of its proposed
economic policy measures, for example, on the money market and the competitiveness of a country, have not been considered. Consequently, Jackson and Victor have
recently expanded the model (Jackson and Victor 2014, 2015, 2016). It is expected
that further development or expansion will lead to a well-founded overview of the
macroeconomic effects of a reduction or stagnation of growth, taking into account
the effects of economic policy measures. In the context of the realization of an
economy without growth, this research can be classified as progress.
Degrowth Approach This approach goes beyond previous approaches to an “economy without growth” by suggesting growth should be reversed in the developed
countries. A pioneer of this approach, which is a recent contribution, is the Parisian
economist and philosopher Serge Latouche (2007, 2009, 2010). A growing number
of representatives of the degrowth approach seek a “great transformation” as an
alternative to the mainstream of growth economy. In this context, it is necessary to
transform the growth-dependent and growth-supporting institutions and measures in
society and the economy in such a way that they are “liberated” from economic
growth. The goal is to overcome the existential dependence on economic growth in
many areas of the economy as well as the society. This requirement is based on the
realization that the natural resources are finite, the ecosystems are vulnerable, and
increasing consumption does not make many people happier. The degrowth
approach is a new paradigm for the developed nations according to its proponents.
However, this approach is not just about the environment and growth but also about
the social dimension of sustainable development. The societal relationship to growth
is considered too. The key fundamental principles for this are:
• Emphasize the quality of life rather than the quantity of consumption.
• Achieve the fulfillment of basic human needs for all.
• Seek social change based on a series of individual and community activities.
12
M. von Hauff
starting in 2028. The assumption is that government interventions such as income
redistribution and other government measures are placed in effect, as well as a
reduction in the weekly working hours. The following effects are to be expected: The
unemployment and poverty rates will initially grow and then fall well below the
starting level by 2035. The debt and greenhouse gas emissions will decrease by 30%
compared with 2005 and stagnate at a low level from 2018 onward.
Victor has a preference for scenario 3, which he thinks is realistic with deliberate
application of economic policy measures. Central to his prediction is the reduction in
total and average working hours. In addition to reducing the work week, the target
includes a broader distribution of work to a larger number of people. The effect
would be an increase in the employment rate. However, this scenario has to take into
account that a number of measures cannot be fully implemented because certain
interest groups in society would oppose the measures. Victor believes that his model
could not only be developed and implemented in Canada but, in principle, also in
other industrialized countries.
Critics of the low grow model pointed out that the effects of its proposed
economic policy measures, for example, on the money market and the competitiveness of a country, have not been considered. Consequently, Jackson and Victor have
recently expanded the model (Jackson and Victor 2014, 2015, 2016). It is expected
that further development or expansion will lead to a well-founded overview of the
macroeconomic effects of a reduction or stagnation of growth, taking into account
the effects of economic policy measures. In the context of the realization of an
economy without growth, this research can be classified as progress.
Degrowth Approach This approach goes beyond previous approaches to an “economy without growth” by suggesting growth should be reversed in the developed
countries. A pioneer of this approach, which is a recent contribution, is the Parisian
economist and philosopher Serge Latouche (2007, 2009, 2010). A growing number
of representatives of the degrowth approach seek a “great transformation” as an
alternative to the mainstream of growth economy. In this context, it is necessary to
transform the growth-dependent and growth-supporting institutions and measures in
society and the economy in such a way that they are “liberated” from economic
growth. The goal is to overcome the existential dependence on economic growth in
many areas of the economy as well as the society. This requirement is based on the
realization that the natural resources are finite, the ecosystems are vulnerable, and
increasing consumption does not make many people happier. The degrowth
approach is a new paradigm for the developed nations according to its proponents.
However, this approach is not just about the environment and growth but also about
the social dimension of sustainable development. The societal relationship to growth
is considered too. The key fundamental principles for this are:
• Emphasize the quality of life rather than the quantity of consumption.
• Achieve the fulfillment of basic human needs for all.
• Seek social change based on a series of individual and community activities.
12
M. von Hauff