New economic model needed not relentless consumer demand (Tim Jackson)

Tim Jackson / The Guardian / January 2013

Tim Jackson (Professor of Sustainable Development at the University of Surrey, UK) explains how since the 2008 global financial crisis the objective of growth as the means to achieve prosperity has come under scrutiny.

He argues the capitalist economic model is dependent on limitless consumption and so we must find new ways to stimulate consumer demand (e.g. credit) to drive growth but in the end when debts can’t be paid the system crashes. It was this that led to the financial crisis, not rogue traders or bad luck.

Jackson says a new model is needed that is not based on accumulating more possessions and debts. This means re-defining what we mean by prosperity.

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This summary was prepared by Why Green Economy?. The views expressed have been paraphrased. See the original source for more information.