Lecture on Prosperity and Economic Growth

Introduction

• Topic: Prosperity and hopes for shared, lasting prosperity
• Issue: 2 billion people worldwide are chronically undernourished
• Hope and Prosperity: The word prosperity comes from Latin "Pro-speras" (hope)
  • Irony: Prosperity is often equated with money and economic growth
  • Current Issues: Overgrowth leading to environmental harm
  • Recession: Only thing slowing carbon emissions, but not a hopeful solution

The Dilemma of Growth

• Dilemma: Can't live with growth, can't live without it
  • Destruction vs. Environmental degradation
• Blind Faith: Reliance on technology and efficiency

Imagining 2050

• Scenario: 9 billion people aspiring to Western lifestyles
• Carbon Targets: From 770 grams to 6 grams of carbon
  • Requires improvement 10 times faster than historical achievements
  • Potential: Economy that removes carbon from the atmosphere

System Dynamics

• Circular Economy: Firms produce goods, provide income, stimulate consumption
• Investment's Role: Chases productivity and novelty ("Creative Destruction")
  • Joseph Schumpeter's "Creative Destruction"
  • Human Appetite for Novelty: Material goods as a language of status

Economic and Social System Lock

• Status and Consumption: Material goods used for status
• Economic Structures: Locked with social logic driving growth

Consumer Behavior and Economic System

• Debt and Savings: Increase in consumer debt, decrease in personal savings
  • Paradox: System encourages spending over saving
• Paradox of Thrift: Saving slows down economic recovery

Human Nature vs. Economic Model

• Crisis Anomalies: Recession leads people to save, conflicting with economic needs
• Giraffes Metaphor: Misplaced priorities due to daily distractions

Human Nature and Economy

• Human Tensions: Self-regarding vs. other-regarding behaviors
• Economic Focus: Privileges novelty-seeking, neglecting altruism

Redefining Economics

• New Economic Models: Community-interest companies, B corporations
  • Example: Ecosia, allocates 80% revenue to rainforest protection
• Reconceiving Investment: Transition to ecological and social goals

Investment and Prosperity

• Material and Social Dimensions: Beyond basic needs to involve social goals
• Investment in Society: Places for connection (concert halls, parks, etc.)

Global Responsibility and Growth

• Room for Growth: In poorest nations
• Prosperity Redefinition: Less materialistic, meaningful prosperity
• African Philosophy: Ubuntu - "I am because we are"

Conclusion

• Not Against Development: Advocating for a new economics fit for human nature

Q&A with Chris Anderson

• Political Buy-In: Politicians need to lead, but companies and civil society also vital
• Efficiency Improvements: Skepticism about achieving required improvements
• Final Note: Gratitude for talk's importance