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Whatever needs to grow is more prone to crises. The economist Irmi Seidl sees this confirmed again in the current situation.
One of the most prominent critics of growth in Switzerland is Irmi Seidl. Twelve years ago, the economics professor and a colleague outlined the so-called “post-growth society” in a much-cited book. It is a society that no longer depends on economic growth to prosper and in which there is no place for consumption for the sake of consumption.
If in the current crisis many people in Europe and also in Switzerland have to be more careful with their money, Seidl is not happy either. Nobody wants or wishes that: What would be desirable, however, would be a restructuring of society so that it is more resilient to such crises, can cope with less use of the environment and is not dependent on growth.
A dangerous addiction
A society that is not under pressure to grow would be much more resilient in a crisis like the current one, says Seidl. Because dependence on growth makes society vulnerable: “In such crises, growth collapses and destabilizes systems such as social security, the public budget and the labor market.”
Switzerland may scrape past a recession. In old-age provision, for example, the crisis has already arrived: the returns from pension funds have plummeted.
Legend:
The economist Irma Seidl assumes that growth rates are declining anyway – with the simultaneous increase in costs in the fight against climate change.
Keystone/Gaetan Bally
The economist, who researches and teaches at ETH Zurich and the Institute for Forest, Snow and Landscape WSL, believes that politics should learn lessons here: “Pension funds in particular are very growth-dependent and it can be safely assumed that growth rates will decline.” According to Seidl, the current experience could contribute to considerations of how the pension funds should be further developed.
Happier with more consumption?
The crisis could also bring about a rethink in society when it comes to consumption: those who have to save will realize that you can do it with less. Wealthier ones may find that doing well with less – or even better.
For a long time, the classic theory assumed that only a growing economy can maintain the prosperity of a society. According to Seidl, however, this has not been the case for around 40 years. Research shows that well-being increases primarily thanks to free time, social relationships and culture.
After the crisis is before the crisis
But Seidl is under no illusions and expects two opposite developments once the crisis is over. On the one hand, there will be a mood calling for growth. “I believe very strongly that there is growing awareness of the vulnerability of the current economic system and that it needs to evolve over the medium term.” Seidl emphasizes that growth will decline anyway.
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Growth critic Irmi Seidl notes a certain rethinking. However, there will not be such a quick and consistent change, so that the current crisis will not soon be followed by the next.
WSL
At the same time, the costs of fighting climate change and its consequences would increase. In order to be able to shoulder these without economic growth, the states would have to make their coffers less dependent on taxes on gainful employment.
It would be more effective and more profitable in the long term if the state levied more taxes on the consumption of natural resources and abolished environmentally harmful subsidies. A rethink is under way, but it will hardly happen so quickly to be able to prevent the next crisis, says Seidl.