The death of 'growth' capitalism and the American Dream

June 8, 2010, 12:01 a.m. EDT ·

GDP 'growth' fetish is killing your retirement
Commentary: The death of 'growth' capitalism and the American Dream

By Paul B. Farrell, MarketWatch


ARROYO GRANDE, Calif. (MarketWatch) -- What do we do now, oh great Zen master? "When you get to a fork in the road, take it," replies the wise one, Yogi Berra, greatest Yankee catcher of all time.

His sage advice to economists, politicians and investors everywhere: "The future ain't what it used to be. We made too many wrong mistakes. You've got to be very careful if you don't know where you're going, because you might not get there."

At the crossroads: Growth! Capitalism's most sacred commandment -- "grow or die" -- may itself be on death row. With us since 1776, it's being challenged by a new reality that's flashing relentless warnings of an emerging new command from critics, contrarians and eco-economists: "Grow and die." Yes, you heard right.

* "Grow or die." Traditional economists say we need 3% GDP growth to support 100 million new Americans in the 21st century. Drill, baby, drill. New jobs to fuel slow recovery. Worse, exploding growth demands as the rest of the world adds 2.9 billion new humans all chasing their unique American Dream.

* "Grow and die." New eco-economists see Big Oil's destruction of our coastal economies, the rape of West Virginia's coal mountains, the unintended consequences of uncontrolled carbon emissions, and they ask: "When will economists, politicians and corporate leaders stop pretending world's resources are infinitely renewable?" Unfortunately, even the new eco-economists fail to factor population growth, the big 800-pound gorilla, into the equation.

Yes, we are all at a crossroads, all facing a dilemma, all confronting the ultimate no-win scenario: Growth is essential to support the global population explosion. Growth is also killing our world, wasting our planet's non-renewable natural resources. As a result, the "growth" mantra will eventually destroy civilization.

Put a face on this dilemma: Governor Bobby Jindal. Louisiana's greatest economic and ecological assets -- marshlands, coastal fisheries -- are being destroyed by capitalism run amok, Big Oil's greed. Yet Jindal's already telling the President to forget the oil drilling moratorium, forget new studies, forget regulations, forget restraining the Big Oil greed machine that got us here. Drill baby drill, now!

Yes, we're at the crossroads. This politician's a perfect example of the no-win scenario confronting all politicians, economists and citizens. He's on the horns of a very sharp no-win dilemma: We're damned if we grow. Damned if we don't. .........(more)

The complete piece is at: http://www.marketwatch.com/story/gdp-growth-fetish-is-bad-for-your-money-2010-06-08

Not holding my breath here.