Is a democratic–capitalist system compatible with a low-growth or steady-state economy?
School of Business Economics, Adelaide, Australia
Correspondence: Philip Lawn, School of Business Economics, GPO Box 2100, Adelaide, SA, 5001 Australia. E-mail: phil.lawn{at}flinders.edu.au
Many ecological economists have called for a rapid transition to a low-growth and eventual steady-state economy. In response, a number of observers have questioned the capacity for a democratic-capitalist system to achieve such a goal. Others simply refute the suggestion that growth needs to be curtailed. It is argued in this paper that: (a) growth is eventually detrimental to human well-being and, as a consequence, a steady-state economy is a long-run necessity; (b) a steady-state economy can accommodate the requirements of a capitalist system; and (c) a would-be-government wishing to impose the macro constraints advocated by ecological economists to bring forth a steady-state economy is potentially electable. As such, there is no reason why a steady-state economy and a democratic–capitalist system should not thrive in each other's presence.
Key Words: democratic–capitalist system • limits to growth • steady-state economy • JEL classification: P16; Q20; Q43