The economy’s in trouble. People are trying to fix it. The problem is, they’re fixing an outdated and flawed model which measures the wrong things, and fails the people it’s meant to serve, says IoMFoE’s Cat Turner
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We’ve been reading lots lately about the island (and the world’s) economic woes and various proposed solutions.
Most of the ones I’m hearing about in the island are based on increasing ‘growth’ – basically perpetuating the same tired old system, which widens the gaps between rich and poor and is based on damaging patterns of consumption.
This consumer-based model is trashing our environment as it eats up the planet’s resources, pollutes our environment, traps millions in the misery of debt and wage slavery.
Plus it uses advertising and the media to convince us that we’re worthless if we don’t own the right things.
The only people it enriches are those who own the companies producing all this stuff.
Not only that, but this mindless, careless cycle works to increase the costs of energy, raw materials and manufactured goods.
This is bad for business. It’s worse for people, and combines with increased stealth taxes on individuals (toilet tax, anyone?) and bigger breaks for corporatons, to make for an unholy mix of social injustice and a generally rubbish quality of life for many.
And, of course, this isn’t jus happening at home.
Some countries, and some social groups, are suffering much more than others.
Unless we ditch this outdated model, it’s only going to get worse. The Isle of Man’s economy is pathetically dependent on fossil fuels for its basic needs (and I don’t just mean energy and heat), and while fossil fuel prices bounce around we’ve never been more vulnerable – both in terms of cost, and of actual supply.
Your power and heat bills aren’t going to fall, until your energy supplier takes a deep breath and starts making real inroads towards a renewable energy contribution to our electricity supply.
We know from the detailed work that’s gone into analysing various options, that there would be an initial small addition to today’s electricity unit prices if an onshore windfarm, for example, were established (the developers take on the capital costs of the setup).
But it won’t take long for fossil-fuel based energy price rises to outstrip this cost.
It’s the choice between a small increase now, and then price and supply security, or perpetual price increases – and the risk of blackouts if our fossil fuel supplies are cut.
With the UK facing its own supply crisis, and brownouts forecast by the Government in the next year or so, this is a real possibility.
If you regard the job of a government to support a fair society where the wellbeing of the population is top priority, then a short-term approach isn’t good enough.
Rising GDP, for example, is a meaningless metric if it comes at the expense of greater social injustice and a population which is unhealthier, more insecure, more worried and isolated and less connected one to another.
Low unemployment is also meaningless if the reality is that people are underemployed, underpaid or have no job security.
That’s a vulnerability with a massive spin-off of problems, socially and economically.
If the warming climate means that the risk from flooding or other natural disasters is increasing (and it is), that is a key vulnerability.
If local, community-owned businesses which contribute to the resilience of our economy are threatened by online shopping and large chain businesses which threaten to undercut them (and make profits from you and me to send to distant shareholders), that’s another.
We need to be honest and clear about these challenges, and engage in some brave and forward-thinking remodelling of the way we do things so as to create a new kind of local economy, and a new local infrastructure that helps our community become more resilient, sustainable and fair.
And full of happiness and fun, too, as that’s usually a byproduct of localsim and a better connected community!
This includes transforming the existing organisations and businesses that work here – and, excitingly, creating new enterprises and meaningful livelihoods that offer equality of opportunity, so that all our population have the chance of flourishing. ‘Freedom to flourish’. ‘The Isle of Man, Where You Can’. These slogans need to be meaningful to all of us, not just a privileged few.
Around the world, including island economies like our own, this thinking’s already happening and over the coming months we’ll be showing you some examples.
We hope they’ll inspire our readers, and our leaders, to move with the times and take the brave, courageous steps that are needed.