Episode #504: Debunking Degrowth

Business Podcast Archive and Shows - The Soul of Enterprise

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SHOW SUMMARY: In this episode of The Soul of Enterprise, Ron and Ed explore the themes presented in "Doughnuts and Degrowth" by Andrew Stuttaford. The article delves into the growing ideological shift from economic growth to a focus on sustainability, as advocated by figures like Olivier De Schutter and Kate Raworth. Ron and Ed provide a critical analysis of the so-called "degrowth" movement and its potential impact on democracy, innovation, and individual freedoms. They discuss the concept of "doughnut economics" and how it aligns with broader trends in global governance, questioning the practicality and desirability of this shift. Tune in as they dissect the intersection of economics, environmentalism, and human rights, offering their own perspectives on what a growth-averse future might hold.

SHOW NOTES

Segment one

• We have a listener question to start off the show. Thank you Donna! @calcmoves If you would like to submit a question just visit https://www.thesoulofenterprise.com/questions

• Donna asked us about using a waitlist for prospects and how to incorporate it into her business while she is on a 90 day bucket list trip. Ron suggested starting with your normal intake process and trying from there to incorporate a waitlist.

• With respect to Donna’s question about prospect waitlists: “The hardest decision to make is the first person on the waitlist. At what point do you say….wait list from here on in.” —Ed Kless

• We love getting email from folks and we read a great one from a lawyer and fan of the show during the first segment of the show today. Take a listen once the podcast drops in about 1 hour.

• This is the article from Andrew Stuttaford that sparked our conversation today: https://www.nationalreview.com/2024/07/doughnuts-and-degrowth/

Segment two

• One of the main folks behind the degrowth movement says he wants us to shift our focus from growth to humanity. Well, that presupposes that growth is anti human. So we reject your premise right there.

• One of the funniest phrases used by the degrowth movement is “modernizing poverty”. I really wish we could say more about this but, honestly, we don’t even know what that phrase means.

• “I just can't get my mind unwrapped around the notion that wealth is knowledge.” —Ed Kless /// Neither can we Ed, neither can we.

• “The economy is not just an incentive system. In fact, Gilder would say it's really just an information system completely. It's not incentive at all. It’s pure information.” —Ed Kless

Segment three

• Entrepreneurs only keep 2% of the wealth they create. Multiply that number by 49 (because that's how you do the inverse of 2%), and that's how much wealth was created OUTSIDE the organization.

• To Ron and Ed, the degrowth movement’s founders feel like totalitarians. “Everything within the state.” https://www.nationalreview.com/2024/07/doughnuts-and-degrowth/

• “The most common air of a smart engineer is to optimize the thing that should not exist.” —Elon Musk

• There is a great article in FEE that Ron and Ed are going to discuss in the 4th segment of the show. “Elon Musk on the Difference between an Engineer and an Entrepreneur” https://fee.org/articles/elon-musk-on-the-difference-between-an-engineer-and-an-entrepreneur/

Segment four

• Growth almost exclusively in the Soviet Union was in capital goods, iron and steel, hydroelectric dams, etc. None of this growth ever seemed to filter down to the standard of living of the average Soviet consumer. (Paraphrased from Murray Rothbard)

• “Planetary boundaries” was referenced by the degrowth movement and Ed found an article in the Guardian that goes through some of these so-called boundaries. https://www.theguardian.com/environment/2023/sep/13/earth-well-outside-safe-operating-space-for-humanity-scientists-find

• At the close of the show today, Ron discussed this article from FEE - “The ‘Green Economy’ Is In Retreat, And It’s Not Hard to See Why” https://fee.org/articles/the-green-economy-is-in-retreat-and-its-not-hard-to-see-why/

• “You can avoid reality, but you cannot avoid the consequences of avoiding reality.” —Ayn Rand

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