What is ‘post growth’?
‘Post growth’ is a vision for the future in which humanity and human systems thrive within ecological limits. It proposes that widespread economic justice, social wellbeing, and ecological regeneration are only possible when money, power, and resources inherently circulate through our economy.
What does post growth look like?
A post growth economy puts life and everything needed to maintain it at the center of economic and social activity as opposed to the never-ending accumulation of money, and the pursuit of growth of all kinds without regard for its consequences.
There are so many projects, models, and approaches happening right now that embody ‘post growth’ perfectly. When we talk about a system beyond economic growth, we don’t have to refer to an abstract future. And, there is no one, single ‘post growth future’ – there are a multitude of post growth futures unfolding simultaneously.
Across the globe, the post-growth movement is flourishing, providing proof that a better world is possible. From New Zealand to Iceland to Scotland, pioneering world leaders are prioritizing wellbeing over economic growth. International companies are embodying a model that puts people and the planet over profit, giving workers and leaders alike an unprecedented sense of shared purpose. At a local level, communities and individuals are rediscovering their value beyond work and money, through an empowering sense of belonging.
Why post growth?
When money is created, an equal amount of debt is also created. For every single dollar in your pocket, there’s an equivalent amount of debt somewhere in the system. In capitalism, money and debt are separated, so their connection is hidden. As people and corporations accumulate wealth, they store it away or reinvest it into secondary markets such as complex investment funds. Money doesn’t circulate, so there’s less available for wages. And as money accumulates among the wealthiest, debt has to accumulate elsewhere, such as in small companies, working people and the middle class, and governments. As the economy grows, debt is piled up, and interest is added. And as money accumulates, so too do power and resources. The longer this goes on, the more a small minority benefits from economic growth, while the rest of us—and the planet—struggle to keep up.
Put simply, the current capitalist system of economic growth threatens our survival as a species—because it sets us up for economic collapse, and because it is fuelled by finite natural resources that are being used up faster than they can regenerate.
A post-growth economy frees us from this vicious cycle, allowing businesses, communities, and the environment to thrive while maintaining the market system.
What does a post growth economy look like?
The main difference between our current system and a post-growth economy has to do with business ownership and governance. As Marjorie Kelly shows in the Transnational Institute’s State of Power Report, “As long as the structural forces of current corporate ownership remain in place – where only shareholders vote for the board, where shareholders are predominantly the wealthy, where companies define success as a rising share price and pay executives handsomely for achieving it – there is no amount of rhetoric or external regulation that can turn companies away from their existing mandate: to create more wealth for the wealthy, with all possible speed.”
Businesses that operate under shared, democratic ownership models – in contrast to those with individual owners or shareholders – can be designed to be fully purpose-driven, focusing on social and environmental needs as key components of success.
This doesn’t mean that businesses stop being profitable. In fact, numerous studies have shown that when companies prioritize environmental and social outcomes alongside profit, they actually become more profitable. When this profit is distributed to keep social and environmental commitments, more money is circulated: to workers, to the government through taxes, and to stewardship initiatives that protect and regenerate natural resources. Wages can be increased, debt can be paid off, and a circular system of ecological efficiency can naturally emerge.
The not-for-profit model also liberates all kinds of businesses from the inbuilt pressure to maximize profit, allowing them to address social and environmental needs. This, in turn, ushers in a shift towards a culture where ecological constraints and requirements can be brought to the fore. Like a pupil that expands and shrinks in response to changing light, a post-growth economy is circular and dynamic, dilating and contracting in response to environmental factors.
Believe it or not, organizations with such a model—including consumer cooperatives, government and nonprofit enterprises, and industrial foundations—already account for around 20 percent of global GDP. What we need to do now is take heart, take lessons, and build on what’s working. It’s time to rewrite the rules from the ground up, to be ready to meet new needs and build something better as the current system falters and fails.
Find out more about the emerging post-growth economy in our forthcoming book, How on Earth, and in our online publication, Post Growth Perspectives.