Archive for year 2010

The Happiest Places on Earth

There’s a new addition to the growing list of publications on how to be happy, whether you live in the United States, Singapore, or anywhere in between: Thrive, Finding Happiness The Blue Zone Way by Dan Buettner.  Dan, his travels, and the results of his extensive research, were recently featured on Good Morning America. On that broadcast, Dan revealed his picks for the happiest places on four continents.  I’ll bet some of the choices will surprise you! I know three out of the four took me by surprise.

You can learn what the four places are and why by clicking on the link below.  You can also learn the four keys to greater contentment — to thriving! — by getting a copy of Buettner’s book.  I’m going to go do that right now…

http://abcnews.go.com/GMA/HealthyLiving/video/finding-happiest-place-earth-12086133

Budget Hero – The Game

See if you can balance the budget – the US Budget, that is…Play this game from American Public Media to develop your budget balancing skills and learn about what is in the US Budget. Imagine how this game might develop if there were comprehensive well-being options…
Let the Game Begin!

The Dalai Lama can have a profound impact — on the economy

Wherever he goes, the Dalai Lama, has an impact. Many who attend his events say they feel enlightened by his presence. But Tibet’s exiled spiritual leader leaves a profound economic impact, too. Rob Schmitz reports.

Read More

UN Human Development Report shows US down to #13

UN Human Development Report shows US declined to #13
American Public Radio-Marketplace

KAI RYSSDAL: We report with some regularity on the most-watched indicator of overall economic health in this country — gross domestic product. But the sum total of everything tangible that an economy produces isn’t necessarily the be-all and end-all measurement of economic health.

Today the United Nations released its latest Human Development Index. It tracks well-being across the globe and the United States is getting a demotion.

Our special correspondent David Brancaccio reports we’re getting dinged for economic inequality.


DAVID BRANCACCIO: It’s been 20 years since the U.N. used new statistics to acknowledge that there is more to well-being than just money. The U.N.’s Human Development Index looks at income in countries around the world, but it also looks at measures of health and education. On the very first of these rankings, back in 1980, America was number one. Today, U.N. officials revealed that the U.S. is number 4 for well-being behind Norway, Australia, and New Zealand. And for the first time, the rankings were also filtered for inequality, gaps between rich and poor.

Jeni Klugman, the director of the U.N.’s Human Development Report, explains what happens to the U.S. when this gap is factored in.

JENI KLUGMAN: Its overall Human Development Index falls by about 11 percent, which is quite significant. It’s much than, for example, Australia. When we adjust for other developed countries, the normal loss is much less.

With inequality’s considered, the U.S. ranking for well-being drops from 4th to 13th in the world.

Tamara Draut tracks U.S. income inequality at the liberal think-tank Demos. She sees the U.N. finding as part of a long arc.

TAMARA DRAUT: The middle class has lost ground and lower income households have just been clobbered. That is the story of the last couple of decades.

America’s rank in the Human Development Index was, on the other hand, helped by its record on education, since the index rewards countries where people spend the most years in school.

In New York, I’m David Brancaccio for Marketplace.


Ryssdal: More of David’s coverage and our series Economy 4.0 on our website, it tracks a whole set of alternative indicators like the Human Development Index.

UN: ‘Significant progress’ in human development

http://www.bbc.co.uk/news/world-11694599

UN: ‘Significant progress’ in human development
By David Loyn
BBC International Development Correspondent

Launched 20 years ago with the simple line that “people are the real
wealth of a nation”, the United Nations’ Human Development Report has
become the most trusted annual indicator of progress in developing nations.

The 20th anniversary report charts progress going back 20 years before
that first publication – so it is an ambitious attempt to chart
development achievements – or not – going back 40 years.

The UN Development Programme’s report concludes that since 1970 there
has been significant progress – often underestimated until now – and
that the fastest progress has been in some of the poorest countries. It
also concludes that aid works.

Schools and hospitals
There has been most progress in the areas of health and education,
sectors which have received most focus in development assistance.

After all this number-crunching, the UNDP believe that there is no magic
bullet, one-size-fits-all route out of poverty – “no single model or
uniform prescription for success”.

—————
What is human development?

Human development is the expansion of people’s freedoms to live long,
healthy and creative lives; to advance other goals they have reason to
value; and to engage actively in shaping development equitably and
sustainably on a shared planet. People are both the beneficiaries and
the drivers of human development, as individuals and in groups

Source: United Nations Development Programme

—————–
Progress has been achieved in dictatorships and democracies, on islands
and in landlocked countries, and in places with different colonial
histories.

And this anniversary report is an affirmation of the starting point of
the economists who began searching, a generation ago, for a better way
of measuring the quality of human life.

The report concludes that progress does not depend on economic growth
alone, but also on life expectancy, better access to health care,
education, transport and so on.

There is no direct link between economic growth and improvement in human
development: some countries have grown wealthier without necessarily
improving the fortunes of those at the bottom.

The starkest example of this is the progress achieved for the poorest in
Bangladesh, relative to India, although Bangladesh has not had economic
growth at anything like the same level as its giant South Asian neighbour.

In Africa only three countries have gone backwards since 1970 – the
Democratic Republic of Congo, Zimbabwe and Zambia – the first two
because of conflict and bad government, and the last principally because
of HIV/Aids.

Dozens of other countries across Africa have made far more progress
particularly in health and education than had been assumed, and that is
where the aid has gone.

Markets ‘not the answer’
The report warns of worsening inequality both within and across
countries. There have been periods when progress has gone backwards -
particularly in countries of the former Soviet Union and Southern Africa.

—————
Millennium Development Goals

Eradicate extreme poverty and hunger
Achieve universal primary education
Promote gender equality and empower women
Reduce child mortality
Improve maternal health
Combat HIV/Aids, malaria and other diseases
Ensure environmental sustainability
Develop a Global Partnership for Development
Uneven progress of MDGs
———————

UN millennium goals ‘can be met’
And the market has not stepped in where institutions have failed:
“Markets are very bad at ensuring the provision of public goods, such as
security, stability, health and education”, the report reads.

Future challenges to progress include climate change and the threat of
further recession.

The report found that the global economic turndown pushed 64 million
more people below earnings of $1.25 a day, the measure of absolute poverty.

In an introduction to the report, the Nobel-prize winning economist
Amartya Sen, whose work inspired the Human Development Index, writes
“the new challenges we face have intensified – for example, those
surrounding the conservation of our environment and the sustainability
of our well-being and substantive freedoms.

“The human development approach is flexible enough to take note of the
future prospects of human lives on the planet”.

At the other end of the scale Norway remains at the top of the list,
with the highest human development.

The US is fourth, just ahead of Ireland, while the UK has slipped to
26th place – behind every other western European nation, and Hong Kong.

HDR report http://hdr.undp.org/en/

Thanks to Lee Gross for sending this around.

Happiness Wisdom from our Elders

What would you do if you won millions of dollars?  A couple of working class Canadian seniors gave it all away (except for 2% saved for emergencies)!  They seem pretty happy to me.  See what you think:

http://www.theglobeandmail.com/news/national/atlantic/maritime-community-hits-jackpot-as-lottery-winners-give-away-prize/article1785586/

Hermann Scheer, Green Energy Leader

Hermann Scheer (1944-2010): German Lawmaker, Leading Advocate for Solar Energy and “Hero for the Green Century” in One of His Final Interviews

Hermann Scheer, one of the world’s leading advocates for solar power, has died at the age of sixty-six. The German economist and politician helped make Germany a renewable energy powerhouse and inspired many across the world to expand the use of solar power. Scheer had been member of the German Parliament for three decades and was the president of EUROSOLAR, the European Association for Renewable Energy. In 1999, he won the Right Livelihood Award for his “indefatigable work for the promotion of solar energy worldwide.” When he received the award, he described solar energy as the energy of the people. We met up with Herman Scheer last month in Bonn, Germany, for what turned out to be one of his final interviews.
Interview with Amy Goodman, DemocracyNow.org October 15, 2010

Guest:

Hermann Scheer, interviewed in September 2010, just weeks before his death at the age of sixty-six. Scheer had been member of the German parliament for three decades and was the president of EUROSOLAR, the European Association for Renewable Energy, and the general chair of the World Council for Renewable Energy. His books on solar energy include The Solar Economy: Renewable Energy for a Sustainable Global Future and Energy Autonomy: The Economic, Social and Technological Case for Renewable Energy.
AMY GOODMAN: We’re broadcasting today from San Francisco. And we were planning to spend the hour today with the author and philosopher Derrick Jensen, here in California for a big event—just before a big event he was having tomorrow here in California. But just before we went on air, we learned of the death of Hermann Scheer. He is a pioneering German politician and economist who helped make Germany a renewable energy powerhouse. Hermann Scheer died last night in Berlin at the age of sixty-six.

Scheer had been member of the German Parliament for three decades and was the president of EUROSOLAR, the European Association for Renewable Energy. He was also the general chair of the World Council for Renewable Energy. His books on solar energy include The Solar Economy: Renewable Energy for a Sustainable Global Future and Energy Autonomy: The Economic, Social and Technological Case for Renewable Energy.

In 1999, Hermann Scheer won the Right Livelihood Award for his, quote, well, “indefatigable”—tireless—”work for the promotion of solar energy worldwide.” When he receieved the award, he described solar energy as “the energy of the people.” Jakob von Uexkull, the founder of the Right Livelihood Award, said today, quote, “Hermann Scheer has been the world’s most powerful advocate for renewable energy during the last two decades. His personal commitment and his incomparable campaigning spirit will continue to encourage many policy-makers, experts and citizens around the world to fight for a world without fossil fuel or nuclear.

TIME magazine named Hermann Scheer “Hero for the Green Century.”

Well, just a few weeks ago, I had a chance to sit down with Hermann Scheer in Bonn, Germany, at the thirtieth anniversary of the Right Livelihood Awards. Oh, I mean, the interview was cancelled several times. First he missed his plane, and then he was being interviewed by one person after another. But finally, we sat down with the member of Parliament from Germany, with Hermann Scheer. It turned out to be one of his last interviews. He began by outlining what he sees as the defining problem of the current energy crisis.

HERMANN SCHEER: The tragedy of our present civilization is that it became dependent on marginal energy sources. The marginal energy sources are fossil sources, fossil resources and nuclear, based on the raw material uranium. The gigantic energy potential is the renewable energy potential always all coming from the sun, including its derivates, like wind and the photosynthetic-produced—photosynthetically produced materials, organic materials, plants, hydro-base. And the sun offers to our globe, in eight minutes, as much energy as the annual consumption of fossil and atomic energy is. That means to doubt—the doubtings if there would be enough renewable energy for the replacement of nuclear and fossil energies, this argument is ridiculous. There is by far enough.

And therefore we are in a situation running into a conventional energy trap in two directions at the same time. First, we are in a process of the coming depletion of conventional energies, faster than many people imagine—or want to believe. And the second limit is an ecological limit, because the negative effects of conventional energies, of nuclear as well as fossil energies in different ways, overstress the ecosphere. That means the life conditions. And it is an open question, and it is not necessary to give an answer to that. It is an open question which limit of the conventional energy systems is closer to our time. Even if there would be much more potential, much more conventional energy reserves, it would not help, because we would arrive at the ecological limit, and we are practically at the bottom crossing this ecological limit. Therefore, we can only recognize, and we must recognize, we have to replace the conventional energies consumption not only in the future at a specific time, we have to recognize it in the run of the next twenty to twenty-five years. This is the main challenge of civilization, to do that.

AMY GOODMAN: How do you do it?

HERMANN SCHEER: The big mistake in the energy debate is that most people think, because they believe that there is a monopoly and the expertise for all energy activities in the hand of the existing energy players. Many people, including governments, including many scientists, who get their orders for studies from them, they believe and think that the present energy suppliers, the present energy trusts, the companies, they should organize the transformation. And this is a big mistake—a big mistake—because this part of the society is the only one who has an interest to postpone it. The only one. All others, all the others, have an interest to speed it up. But as long government think that it should be left to the energy companies, we will lose the race against time.

AMY GOODMAN: The Financial Times says German photovoltaic cell installations last year amounted to more than one-half of those in the world.

HERMANN SCHEER: Right.

AMY GOODMAN: How did you make that happen?

HERMANN SCHEER: With the Renewable Energy Act. The Renewable Energy Act was one of my initiatives, together with only a few colleagues in the Parliament. And it was not a draft of the government, because the government was against. We mobilized the measure—it was the Parliament—against the will of the government, to introduce this law and to adopt it. It is a law which gives investment autonomy for all who want to invest for renewables. Without any obligation for them to ask the power companies if this is, let’s say, compatible with their energy investments, they could do it. The full name of this law is Law for the Priority of Renewable Energies.

And it constituted a special renewable energy market with priority and with three elements. The first element is a guaranteed access to the grid for all—for each kilowatt hour produced by renewables, apart from the question who is the producers. The second element is a guaranteed fee for that, because without that, there could not—there would be no investment security. That means we made an obligation to give them a fee, and we enumerated this fee, very precise, and—in order to avoid discrimination. The third element is no cap. No cap for that. And this created the investment autonomy, and more and more individual persons, owners of houses, companies, individual companies, cooperatives, local municipalities, local utilities, they became the investors. And in the run of ten years, there was the total installation by such investments of 45,000 megawatt renewables—all renewables, PV, wind power, photovoltaics, wind power, biogas, small hydro, independent power players, many of them, and with a total investment of more than a hundred billion euro. And to make a comparison, in these ten years the big power companies invested less than ten.

AMY GOODMAN: German economist and member of the German Parliament for the last thirty years, Hermann Scheer. We spoke to him just a few weeks ago in Bonn, Germany. Hermann Scheer died unexpectedly last night in Berlin at the age of sixty-six. And so, we are bringing you this interview with him for the hour, one of his last.

This is Democracy Now!, democracynow.org, the War and Peace Report. We’ll be back with Hermann Scheer in a minute.

[break]

AMY GOODMAN: We’re on the road in San Francisco. I’m Amy Goodman. And we just got word that Hermann Scheer has died. He was a member of the German Parliament for the last thirty years, known as a great ecological force. We weren’t planning to bring you this interview today. We had told you we would be interviewing the philosopher, the environmentalist Derrick Jensen, because Derrick is having a major event tomorrow called “Earth at Risk” at Seven Hills Conference Center at San Francisco State University. But when we got word just before this broadcast of the unexpected death of the German parliamentarian Hermann Scheer—he died last night in Berlin at the age of sixty-six—we knew we had to bring you the Scheer truth. We had to introduce you to, if you haven’t already know him, Hermann Scheer. TIME magazine called him the “Hero] of the Green Century.” When we interviewed him in Bonn, first he cancelled, then he missed his plane, then we sat down with him.

AMY GOODMAN: Why was the government so opposed? Why did you have to take on the corporations and the government?

HERMANN SCHEER: The government behaved like all the governments behave. They feel themselves and they act as partners and assistants of the conventional power structure. This has many reasons. Some believe—some politicians believe that there would be no alternative. They believe the arguments. Others are very closely linked, personally linked, with the power companies and in different ways of corruption. The most comfortable way to corrupt a politician is the method, illegal method, to pay them later, after office—after office, after leaving government, then hiring him for the board. And this is very popular here, a very usable way of, let’s say, legalized corruption. And the thinking of all governments that they are dependent from the work of the energy supplier, because no economy can work without energy. And the monopoly of the conventional power, even in the thinking that there would be no alternative, this monopoly gave them so much influence, so much influence, that many governments are puppets, governors are puppets in the hand of these power companies.

AMY GOODMAN: Would you put the United States into that category?

HERMANN SCHEER: In the same category. Look what happens when a governor tried to touch this sphere, how many conflicts he had. I know the American history very well. The most successful one to fight with these energy trust interests was Theodore Roosevelt. He destroyed Exxon and separated it in different parts.

AMY GOODMAN: He broke up the Standard Oil cartel, the predecessor to Exxon.

HERMANN SCHEER: Yes, Standard Oil. He broke up the Standard Oil Company. He fighted against, because this endangers the society. This endangers the public interest, yeah? They become too strong, stronger than government, and this is not tolerable. And he was totally right.

And all who followed this example—the next who tried to do it was Clinton, but he gave up very early—very early—because he wanted—his first step was to introduce a kind of eco-tax the first year of his presidency. And Big Oil and others and Big Coal, they tried to influence the Congress members of the Democratic Party in their electorate—”If you vote for that, then we make a campaign against you in your next election campaign,” and so forth. In different ways, they tried to influence them, and therefore Clinton didn’t get a majority for that. And the same happens now. I believe President Obama, that he wants to organize a shift, but the resistance against this is very brutal. Very brutal.

AMY GOODMAN: Small, perhaps, symbolic thing in the last weeks—well, Jimmy Carter in 1979 put photovoltaics—

HERMANN SCHEER: Jimmy Carter, the same. Jimmy Carter, yeah. Jimmy Carter was the same story. Jimmy Carter tried to do it, but then he got so much opposition against this in the—by the energy cartels and their influence into the political structure in the Senate, in the House of Representatives, that he could not push it through, really.

AMY GOODMAN: Well, he did put solar panels on the White House at the end of the 1970s.

HERMANN SCHEER: Yes.

AMY GOODMAN: Reagan took them down.

HERMANN SCHEER: Not at the end, it was. He installed solar—solar—

AMY GOODMAN: Panels.

HERMANN SCHEER: Not—yeah, solar panel. He installed the solar panel. It’s the Solstice Day in 1977, in his first year as president.

AMY GOODMAN: Well, students now, together with Bill McKibben, the environmentalist, tried to bring those solar panels back to the White House.

HERMANN SCHEER: Yeah, I know.

AMY GOODMAN: Your reaction to that?

HERMANN SCHEER: I believe that he wants to have this energy change. I believe that. I trust him. I trust him, but I think the only method to succeed to—to succeed over all the opponents, over all the conventional, selfish interests, the big interests, is to fight with them in the public, to win the public for that. You can—against this power structure, the best alliant is the—are the people.

AMY GOODMAN: Herman Scheer, you said in your Right Livelihood Award acceptance speech, “Solar energy is the energy of the people. To use this energy does not require big investments of only a few corporations.” What does it require? And who benefits? In the United States, you raise solar power, and many people just say, “I mean, that can take care of such a small amount of our energy needs. Let’s get real.”

HERMANN SCHEER: Yeah, this is only like a fantasy, because one panel is small. If you need more energy, you make more panels. Where is the problem? Where is the problem? It is very easy to show how it can work, and it could work, and with a mix of available energies. And the benefit for the national product, for the shift to renewable energy, is tremendous. And besides the unique political advantage to come to energy independence, it is—not to mention, this would be my argument, and I speak about it in this way when I give speeches in the United States, including speeches in the—or having talks with congressmen—the big democratic state like the United States, the first power, political power, in the world now, must behave like a beggar when they go to the king of Saudi Arabia, who is—who represents a feudalistic regime of the Middle Age, in order to have good relations for getting all this oil. This is—I think this is against any dignity. This is against any dignity pragmatically, and it’s against any rationality in practice. Such a dependence from—and without energy, nothing works. It must be a political—a main topic, political topic, to come to energy independence, to overcome this irresponsible dependency, which would cost a lot. More than one-third—more than one-third of the American defense budget is only given for protecting the oil and the energy importation lines. Only for that. The Gulf War would not—would not have—

AMY GOODMAN: Happened?

HERMANN SCHEER:—happened if—and even not the Iraq war, if there would be the plantation of bananas in Iraq instead of the extraction of oil. There is no doubt. There is no doubt. And this kind of relation to very dubious regimes in the most oil-promoting countries, most of them are not democratic, is, again, against any values we have.

AMY GOODMAN: You talked about the power of the governments together with the power of these oil companies. What about the media? In the United States, much of the media is corporate media, and every five or ten minutes you’ve got a commercial for another oil company or car company.

HERMANN SCHEER: Yeah, but they have the same influence here. They make the big advertisements and give, by this way, money to the medias. But nevertheless, because of the acceleration—of the politically initiated acceleration with Renewable Energy Act in Germany, so many people can see the results. And they ask themselves, “Why not everywhere? If it’s there, why not here? Why not everywhere?” And—

AMY GOODMAN: Has the government turned around?

HERMANN SCHEER: Yes, it turned around. Nobody speaks anymore against renewable energies. Some behave in the way as—to do as if they would do it, but officially they speak all for that. It is the greenwashing strategy for many. But people want to have this. Against all the disinformation campaigns, 90 percent of the people here, based on the visible—on the visible results and inspired by the and encouraged by the visible results, ten—90 percent want to have a general change to renewables. Seventy-five percent want to have this in their district, not far away in their district. Less than ten percent accept new coal power stations. Less than ten percent would accept new nuclear power stations. And only 30 percent will tolerate, let’s see, a longer working time for the existing power station.

AMY GOODMAN: And yet, Hermann Scheer, you have German Chancellor Merkel deciding to extend the lifespan of the seventeen nuclear reactors by twelve years.

HERMANN SCHEER: Yeah.

AMY GOODMAN: She just did this earlier in September.

HERMANN SCHEER: Yeah. And people don’t accept that in the majority. They don’t accept that.

AMY GOODMAN: President Obama, after thirty years of no nuclear power plant—no new nuclear power plant being built in the United States, is now pushing forward for billions in loan guarantees for new nuclear power plants.

HERMANN SCHEER: Yeah. Yeah, he did it because only then he could—he could introduce some new, let’s say, promotion programs for renewables, because he has, for a real energy shift, no majority, even not in his own party. Even not in his own party, because in some states like North Carolina with the coal interests, and the two Democratic senators would never vote for a renewable energy program for replacing coal. Never.

AMY GOODMAN: Even when you have coal explosions, like the Massey plant that killed so many.

HERMANN SCHEER: Yeah, yeah, yeah. Yeah, yeah, but the two Democratic senators of this state, they will never vote against this, and they belong to the Democratic Party, and therefore—and there are several other examples where the influence of these power groups is so strong that the behavior of the congressmen—of their congressmen is not really independent. And this is a situation that means the energy change in the United States must come from the local and the states level. One should not wait in America for the federal level. It should be in the states and in the cities.

AMY GOODMAN: How have you become such a scholar of American history and politics today, as a German politician?

HERMANN SCHEER: Because—yeah, because America has its special role in world policy. But this is not the only thing. America is a country in which all developments are—all developments are possible. All good and all bad developments are possible. And it is very important that an energy change in the United States happens. Very important, not only for America. And the—

AMY GOODMAN: Why?

HERMANN SCHEER: Because of the strength and the influence of the United States of America and its role in world economy and world politics. And therefore it is—but I’m sure that shift can only come by—in no way by the present energy companies. It must come from the local level, from the regional level, from the states level, from the municipal level, and—because it is in fact a revolution, a technological revolution.

There is an example, very actual, which gives the picture, which could be the model for that. This is the information technological revolution, because the energy experts, the big information technology companies, like IBM, they thought, twenty-five years ago, the future of information technology is in highly centralized computers. They were the experts. Like our energy experts. And they underestimated totally what happens if there is a shift caused of the technological possibilities from few demanders, who order big computer stations, too many, to millions. This changes all. And the same will happen, and must happen, with renewable energies.

It is a fight. This is a structural fight. It is a fight between centralization and decentralization, between energy dictatorship and energy participation in the energy democracy. And because nothing works without energy, it’s a fight between democratic value and technocratical values. And therefore, the mobilization of the society is the most important thing. And as soon as the society, most people, have recognized that the alternative are renewable energies and we must not wait for others, we can do it by our own, in our own sphere, together in cooperatives or in the cities or individually. As soon as they recognize this, they will become supporters. Other—this is the reason why we have now a 90 percent support against all the disinformation campaigns. They have much more money and possibilities to influence the public opinion, but they lost this. They lost this conflict. In the eyes of the people, they lost the conflict. They are the losers already.

AMY GOODMAN: German parliamentarian, environmentalist, economist, Hermann Scheer. He died suddenly yesterday at the age of sixty-six in Berlin. We’ll come back to our conversation, one of his last, in a minute.

[break]

AMY GOODMAN: We return to our conversation with Hermann Scheer, the German parliamentarian, economist and environmentalist. He died suddenly last night at the age of sixty-six.

AMY GOODMAN: How could a green economy stimulate jobs and the economy overall? Because President Obama seems to have lost that or lost his way.

HERMANN SCHEER: He has lost his way because he has no majority. He must fight for majority, in various fields. And therefore he cannot really—he cannot act really autonomously. And this is the situation in the United States, where you have a strong president but also a strong parliament—not a strong parliament, a strong Senate and a strong House. And this is—that means, in such a structure, many developments can become blocked.

AMY GOODMAN: You’re a federal politician in Germany. You have—half your life you have spent in the German Parliament.

HERMANN SCHEER: Yeah.

AMY GOODMAN: Why, if you talk about everything being at the decentralized state and local level?

HERMANN SCHEER: Because that’s what happened in Germany, required before that in the fields of legal frameworks it was necessary to open the space for that, that the people can act. This was not possible before. The main work, political work, for the support and help for the energy revolution to renewable energy is to open the space to create investment autonomy for renewables to overcome so many direct and indirect administrative, bureaucratic barriers, which hinder the people to take renewables, which hinder that and therefore don’t giving permission for windmills in the counties or don’t—or don’t give permissions for solar roofs and so forth. And so, there are so many, so many hidden—hidden rules favoring conventional energies and blocking renewable energies in a decentralized way. So many. And to overcome this requires political decisions. Yeah. What we need is a liberalization of renewable energy introduction.

AMY GOODMAN: One of your first books was called Solar Manifesto. Your new book, just coming out now, is called?

HERMANN SCHEER: The Energethical Imperative. An energethical—

AMY GOODMAN: The Energethical Imperative?

HERMANN SCHEER: Energethical. In German, we say energethische in German. And in English—

AMY GOODMAN: So, “energy” and “ethical.”

HERMANN SCHEER: “Energy” and “ethical” combined in one word.

AMY GOODMAN: What is that?

HERMANN SCHEER: Yeah, I show that they are not only economic reasons, heavy economic reasons, to shift to renewable energies. It is an ethical—an ethical must. An ethical must, if we want to keep human society, human civilization.

AMY GOODMAN: How?

HERMANN SCHEER: Yeah, because it is—it will become impossible, if mythic—all the consequence of the conventional power structure and system, not only the climate conferences, they ask, if we want to have to keep and to disseminate democratic human values, it is—it becomes impossible to do this on the basis of nuclear and fossil energy, because nothing works without energy. And energy dependency like now, from big democratic states, from some feudal regimes in some places in the world, means America is not independent. It’s not independent. Not really independent. Yeah, and the European democracies are not really independent. Yeah, they are—they must follow, inevitably, or they must conquer these states. Yeah? Occupy the states or follow them—or take care about them, about such relations. This is an unbelievable situation. It endangers democratic—this situation of energy dependency endangers democratic constitutions. Democratic constitution means self-determination of a society, political self-determination of society. How can a society self-determinate in itself if the lifeblood of all activities is coming from—is coming from another one and creates existential dependency.

AMY GOODMAN: You write that a solar-based economy will overcome global economic disparities—

HERMANN SCHEER: Right.

AMY GOODMAN:—and the ongoing ecological crisis.

HERMANN SCHEER: And just look to the third-world countries, the same situation. They are—they have to pay with, let’s say, possibly a grand national product of five percent rebated to Europe or to United States, five percent per capita. They have to pay for the importation of oil, the same like we. With which money? They don’t have the money for that. The reason is poorer and poorer people—no, the result is—excuse me, the result is poorer and poorer economies. More than forty countries in the world, more than forty in the third world, have to pay more for the importation of oil than their total export earning is. That means it’s over. It’s over. If they want to promote their economy, they need more energy. If the energy bill eats all the coming revenues by the promotion of the economy, they are in a dead-end street. And therefore, until the situation goes down and down and down, who speaks about third-world problems and forgets this energy point doesn’t know about what he is speaking, really. And therefore, this shows it—and it is an ethical problem. To help them, to come from these imported energies to indigenous renewable energies, this is the only economic chance for them, the only economic—otherwise, they will become poorer and poorer. And therefore, it is not only—not only a question for energy consumption. It’s a question for economic development. It’s a question of a democratic—for the survival of democracies. It’s a question for overcoming the third-world rises. And it is a decision to keep the human values.

AMY GOODMAN: Finally, Hermann Scheer, what gives you hope?

HERMANN SCHEER: That I could set an example in the political structure. Besides all what I have done to enlighten people, to take this opportunity to go this way and to organize pressure for that, to create a movement in the society that is—it was possible to show a fast energy shift is possible. We have now, encouraged by that, inspired by the first big steps, by the first many steps, that nowaday more than a hundred cities and counties in Germany have decided to shift to 100 percent renewable energies in the run of the next five, sometimes ten, sometimes ten, sometimes fifteen years. And the number of cities who want to go this way increases from month to month. Now, this is a real democratic revolution.

AMY GOODMAN: The US is losing its manufacturing base, yet Germany is perhaps the leading country, if not the only one, that has increased its manufacturing base.

HERMANN SCHEER: Yeah.

AMY GOODMAN: How have you managed to do this?

HERMANN SCHEER: Yeah, this was—we created the market. With the Renewable Energy Act, we created energy investment, investment autonomy for renewable energies. That means more and more demands for solar technologies and wind power technologies were there. And this enabled the industrial bases for that, growing industrial companies for the producing, for the protection of these technologies. Therefore, one element pushed the other. One element pushed the other and widened it up. And a new move started, ecologically, economically, a new democratic move, and a new enthusiasm, because the perspective of going to 100 percent renewable energies is motivating many people, because as long people think—as long people think nobody can overcome this power structure, nobody can do it. They lose their hope. And you can only motivate people in the society with a perspective which is handleable and which is not dependent on the question if there are coming new decisions at the global level, at the summit, at the G8 summit, G20 summit, or at the world climate conference.

AMY GOODMAN: Will you be there in Cancún?

HERMANN SCHEER: No. I never expected—I wrote it before, fifteen years before—that there could come breakthrough by world climate conferences. We should not give hope for them.

AMY GOODMAN: Because?

HERMANN SCHEER: This is globally talking, nationally postponing. What happens there? It is more than a minimum, at this level—at this level, more than a minimum compromise is not possible. It’s not—and this minimum level is combined with the emission trading concept. That means the minimum level becomes the cap, and the minimum level is by far behind the real challenge. That means if they come to a solution, to an agreement, it creates—this agreement will be, in any way, an agreement which gives an economic incentive not to do more than the minimum. This is not the way to solve the problem.

And, by the way, it reduces the challenge for the society to the climate problem only. But if the climate problem would not exist, would be there no change anymore to shift to renewable energies? No, it would. It would—it is not the only reason. And as long all things are focused only on climate change questions, they come to wrong answers. They come to wrong answers in the method, how to do that. And this was used and abused for a nuclear renaissance, because nuclear powers have other problems. They have nuclear waste for 100,000 years, but they don’t have CO2 waste. Therefore it is a kind of—it is—the reasons for shifting to renewable energies are far more than, alone, the climate, the climate crisis. The climate crisis would be a reason enough, but what have they created? Concepts, emission trading, that each investment, far away, could be involved into the calculation. It is totally anonymously. Totally anonymously. That’s what—this is not the way. This is purely technocracy. It is exactly the contrary what we need—the mobilization of society to organize their energy change, their energy shift, not waiting what others are doing. Only then, movement comes.

AMY GOODMAN: German parliamentarian Hermann Scheer. We spoke last month in Bonn, Germany. It turns out it’s one of his last interviews. Hermann Scheer died unexpectedly yesterday in Berlin. TIME magazine called him “Hero of the Green Century.”


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Stiglitz Interview on US Economy

Amy Goodman (Democracy Now, October 20,2010) interviews Joseph Stiglitz, Nobel economist on the US Economy

AMY GOODMAN: Federal law enforcement officials are launching an investigation into possible criminal violations of US law by banks and other financial firms involved in the foreclosure crisis. The multi-agency task force on financial fraud, led by investigators in the Justice, Treasury and Housing departments, are exploring whether banks broke the law and misled federal agencies when using fraudulent documents to foreclose people’s homes.

The federal probe coincides with an effort by investors to hold firms accountable for selling securities composed of improperly serviced mortgages. Late Tuesday, a consortium of eight investors, including the Federal Reserve Bank of New York, demanded that Bank of America buy back some $47 billion worth of troubled home loans packaged into bonds by Countrywide Financial, which is owned by Bank of America. The New York Fed is also considering suing Bank of America.

The inter-agency federal investigation was announced a day after Bank of America and GMAC Mortgage said they’re resuming foreclosures in the twenty-three states where a court’s approval is needed to foreclose. Ten days ago, Bank of America had imposed a nationwide halt on foreclosures following revelations employees at several lenders had approved thousands of foreclosure affidavits and other documents without proper vetting.

On Tuesday, White House Press Secretary Robert Gibbs said the Obama administration is committed to holding banks accountable for any legal violations tied to foreclosures.
PRESS SECRETARY ROBERT GIBBS: Our concern has been ensuring that the process adequately complies with the law. That’s what led—like I said, that’s what led FHA to get involved in this. That’s what’s led the Financial Fraud Enforcement Task Force to be involved in this process, as well as our support for fifty state attorneys general ensuring, again, compliance with the law. Obviously, they have certain requirements in the law that have to be met, and if they’re not meeting those requirements, they certainly can face fines from us and they can face legal action from homeowners.
AMY GOODMAN: Well, members of President Obama’s Financial Fraud Enforcement Task Force and other administration officials are scheduled to meet today to discuss the foreclosure crisis.

For more on the state of the economy in this country and around the world, I’m joined here in New York by the Nobel Prize-winning economist Joseph Stiglitz. He’s a professor at Columbia University and the author, most recently, of Freefall: America, Free Markets, and the Sinking of the World Economy. It’s just out in paperback.

Welcome to Democracy Now!

JOSEPH STIGLITZ: Nice to be here.

AMY GOODMAN: OK, let’s start with foreclosures. What do you think needs to be done? If you were in that room today in Washington, DC, what would you say?

JOSEPH STIGLITZ: Well, first, I’d begin with the problem of so many Americans owing more on their homes than the value of their homes. We have to put this in context. The mortgage companies, the banks, engaged in predatory lending practices. They weren’t asking what was the best mortgage for these homeowners; they were asking what was the mortgage that generated most fees for me. The way the mortgage system worked, they could take bad mortgages, sell them off to investment banks that would repackage them and sell them on to other people. That’s the other part of the story that you were talking about, where PIMCO, Federal Reserve, all these people who have wound up with these securities, say, “You gave us a lot of junk.” So, it’s all the way along the pipeline that there has been fraudulent behavior, all the way from the foreclosures that you were talking about, but really going back to the creation. So, in my mind, what we should begin is trying to protect Americans.

So, we ought to have a homeowners’ Chapter 11. Let me explain what that idea is. You know, when corporations have trouble paying what they have to pay, what we say is we can write down the debt. It’s so important to keep those enterprises going, keep the jobs, keep the suppliers going, that we allow them to write down the debt and restructure. Well, keeping American families going is even more important, I think, than keeping corporations going. So, that should be part of the philosophy, that we ought to say, look at, the banks were really derelict in the loans that they made. They should have known that there was a bubble going on. I certainly talked about it; other people talked about it. They were really engaged in predation. So let’s use a homeowners’ Chapter 11 that allows a speedy write-down of what is owed, converting some of the debt into equity, so that when they sell the loans sometime—when they repay—sell their house sometime in the future, if the market recovers, some of the capital gain will go to the bank. But meanwhile, the payments that the homeowners will have to make will go way down. And that will mean that they can stay in their home. And that will be good for the families. It’ll be good for the communities. When people are thrown out of their homes, it’s bad for the family, it’s bad for the community. And we have this, you know, real evidence that our market system isn’t working when we have empty homes and homeless people. That’s not the way a market economy is supposed to operate.

AMY GOODMAN: Would you support a foreclosure moratorium?

JOSEPH STIGLITZ: Well, I think probably the answer is yes. The fact is that they’ve generated so many bad mortgages, so many fraudulent mortgages. And by the way, this problem of fraud has been known for a long time. The FBI started reporting on this years ago. I talk about that problem in my book. It’s not just risky lending. It was fraudulent, predatory, all these—and so, we have a backlog now. And we shouldn’t be surprised that our legal system is not capable of processing the numbers of foreclosures that have to be processed. We’re talking about probably something in the order of magnitude of three million, three-and-a-half million foreclosures actions this year. Last year, the estimate was about two million lost their home; the year before, two million. Our system isn’t geared to do that.

But there’s a more—there’s a deeper point that I’d like to raise, which is the following. You know, in a democracy like ours, people have to have confidence in the fairness of our legal system. And if they feel that the legal system is stacked against them, then voluntary compliance—our whole social fabric starts fraying. And I think a lot of Americans have come to the view that the system is stacked against them. It began, in a way, with the bankruptcy law that was passed back in 2005 that, in effect, reintroduced bondage in America. I mean, people haven’t realized how bad that law was. If you owe a hundred percent—you know, amount of money that’s equal to a hundred percent of your income—you have a $40,000 income, you wound up with a credit card debt and other debt of $40,000—for the rest of your life you may be working 25 percent of your time for the banks. The way it works is very simple. They can take 25 percent of your income—you know, it used to be easy that you could go bankruptcy and you get discharged of the debt. They made it very difficult. So, you can pay 25 percent of your income every year to the bank, but then the bank can charge you 30 percent interest. So, the end of the year, you owe more money than you did at the beginning of the year, even though you gave 25 percent of your income to the bank. Now, this is an example of something that is clearly socially unjust.

AMY GOODMAN: This was passed when the Republicans were in control.

JOSEPH STIGLITZ: That’s right.

AMY GOODMAN: And this was 2005.

JOSEPH STIGLITZ: That’s right.

AMY GOODMAN: Now, we’re talking about foreclosures by banks, and which President Obama is not for a nationwide foreclosure moratorium. But even the government, it is the largest foreclosure entity out there, according to Bruce Marks of NACA, a housing activist. FHA mortgages, government-owned, are doing massive numbers of foreclosures; Fannie Mae, massive numbers of foreclosures, he said. So he said President Obama maybe doesn’t want to do a full moratorium. But why not make the government-owned entities, the ones that the taxpayers own and control, let’s start with them?

JOSEPH STIGLITZ: It actually makes sense for our economy. And let me explain why that is, because when you dump all these mortgages, these houses, onto the market, it depresses the prices, and that means that the real estate market is destabilized. One of the advantages that the government has is that it can and should take a longer-term horizon. It should realize that if it holds onto these a little longer, provided it can maintain those homes, then it’s a lot better as an owner of the home. They don’t have to be shortsighted in the way the banks are so shortsighted. So, in a sense, it’s even good economics for the taxpayer. And again, it goes back to the point I made before. It makes absolutely no sense in our economy to be creating homeless people, throwing people out of their homes, disrupting the education of their children, undermining the communities, and at the same time, having these empty homes. What really happens, when you throw people out, very quickly the house debts starts to get wasted.

AMY GOODMAN: And this, of course, affects these midterm elections. If President Obama cares about Democrats controlling the House and the Senate, this is the major issue, is the economy, jobs, foreclosures. And yet, they constantly—just in the last few days, David Axelrod, the White House adviser, speaking for the President, says there are in fact valid foreclosures that probably should go forward. HUD, they’re saying the same thing. Where do people gain any confidence that the President, who said he was taking on the big corporations, cares more about them than the banks?

JOSEPH STIGLITZ: Well, you know, one of the key words here that you said is “valid” foreclosures, because we believe we have a system with a rule of law, but what we have to recognize is that there was fraud all along the line. They were creating these mortgages at such a rate that the documentation wasn’t done well.—they were creating these mortgages as such a rate that the documentation was not done well, that we know there are lots of instances where—when the people went into the final signing of the mortgages, the income that was stated was not the income that the person told them. And then they would say something, “Oh, don’t worry, that’s a technical detail.” So, is that a valid mortgage or not? The fact was, it looked like the documentation was right, but in the creation of the documentation, there was fraud. Now, we were manufacturing—or the financial sector was manufacturing bad mortgages at such a rate that, literally, it’s extraordinarily difficult to tell, at this juncture, what is a good mortgage and what was not. When there was misrepresentation to the borrower, is that valid or not? And so, I think we have to recognize that this process, from 2003, ’04 on, was just rife with these problems. And it allowed the banks to book high profits then, and now the key issue is they don’t want to admit the losses that are associated. And that’s really what the battle is about.

AMY GOODMAN: We’re talking to Joseph Stiglitz, Nobel Prize-winning economist, professor at Columbia University. His book is just out in paperback; it’s called Freefall: America, Free Markets, and the Sinking of the World Economy. If you want to join in the discussion, you can send in your questions at Facebook, facebook.com/democracynow. We’ll be back in a minute.

[break]

AMY GOODMAN: Our guest is Joseph Stiglitz, Nobel Prize-winning economist, professor at Columbia University. His book is out in paperback, Freefall: America, Free Markets, and the Sinking of the World Economy.

So, just to summarize, you are for a national moratorium on foreclosures.

JOSEPH STIGLITZ: I think—inevitably, I think we have to be moving towards that. And the reason is very simple. There were such—the bad practices were so rife, the inequities were so rife, the fraudulent behavior was so common, that at this point we don’t know what is a valid mortgage and not. And the consequences of throwing somebody out of their home, when they shouldn’t be, are hard to reverse. I mean, just imagine what it does to the family— education of the kids are interrupted—what it does to the community. So, when we have to balance the injustices—and life is unfortunately always balancing one side versus the other—and where will their mistakes be easily reversed and where not? My view is, if we keep them in the homes for a little longer, they owe the money—they still owe the money, that doesn’t let them off the hook—but what we’re saying is we’re not going to speed up this process of—where there’s the serious risk of an inequity that will not be easily compensated for.

AMY GOODMAN: Joe Stiglitz, the deficit, the battle cry of the Tea Party movement, of the Republicans, as well. Robert Rubin has weighed in, says any new stimulus plan is highly likely to be counterproductive. What do you think has to happen? Does the deficit matter? And how do you think it should be dealt with?

JOSEPH STIGLITZ: My view is we cannot afford not to stimulate the economy. So, you know, anybody that says we should go back to austerity or we should not have a second-round stimulus just doesn’t understand economics. And let me be very clear about this. If we don’t stimulate the economy, the economy is going to get weaker. When the economy gets weaker, tax revenues go down and expenditures go up. Already, more than 40 million Americans are on food stamps. Number of people on Medicaid is reaching record levels. So, revenues go down, expenditures go up, deficits get worse. If you stimulate the economy, then people get jobs, they spend money, tax revenues go up. Now, if we spend the money on investments—investments in education, technology, infrastructure—you grow the economy in the short run from the stimulus, you grow the economy in the long term because of the returns that you get on these investments.

I mean, just think about this from the point of view of a firm. If you are a firm and you could borrow at zero to two-and-a-half percent, which is what the government can borrow, and you have investment opportunities that you owe ten, 15, 20 percent, you would be irresponsible, you would be foolish, not to undertake those investments. So, anybody that says, “I’m going to only look at one side of the balance sheet, the liabilities; I’m not going to look at the other side, the assets,” is really not understanding economics. It’s that kind of reasoning that got our country in the trouble in the first place, the people who didn’t—you know, shortsighted behavior of the banks that got our country in trouble in the first place. And to me, I just view those kinds of statements as totally irresponsible.

AMY GOODMAN: Let me ask you how war fits into this. I mean, you co-wrote the book with Linda Bilmes, The Three Trillion Dollar War. How does war fit into our problems with the economy?

JOSEPH STIGLITZ: Well, war fits in because you’re creating a liability, you’re spending money. And when we went to war in Iraq and Afghanistan, we already had a deficit. And so, these wars were the first wars in America’s history financed totally on the credit card. So, you’re creating a liability, but you’re not creating an asset. So that’s the kind of spending that does weaken the economy, because it’s one-sided. Now, we came out just a couple weeks with new numbers that unfortunately show that our old numbers were a little wrong, in the sense that they were too conservative.

AMY GOODMAN: Three trillion dollars.

JOSEPH STIGLITZ: Was too little. And particularly what we looked at in a report—we testified before Congress—what we looked at was the large number of troops returning who are disabled. Turned out that the numbers returning disabled are higher than we had estimated. It’s close to 50 percent now. And the cost per disabled, injured troop is higher. So we had talked then about the cost of healthcare and disability payments for our returning troops in the order of maybe a little less than a half-a-trillion dollars. That’s a lot of money. Our new numbers are, best estimate, in excess of $900 billion. These are unfunded liabilities, a moral obligation—they fought for us—unfunded, totally unfunded. The good news is that they were trying to put together a coalition of people who believe in responsible budgeting, that said, “OK, if we’re going to send our troops overseas, we ought to at least put aside the money to pay for the full in costs. The full in costs include the costs of these disabled people.

AMY GOODMAN: So what you’re estimating the cost of both the wars in Iraq and Afghanistan now at?

JOSEPH STIGLITZ: Well, well in excess of the $3 trillion. Before, the numbers that we said were actually three to five trillion. That doesn’t sound as catchy a title as—”The Three to Five Trillion Dollar War.” The numbers now are much more like four to six trillion. And—

AMY GOODMAN: And yet, across this country, as the debates over—you know, for various congressional and Senate seats, for any seat, whether you’re talking about a state one, as well, war is almost never raised.

JOSEPH STIGLITZ: Yeah, I don’t understand that, because what should be so clear is that we have a limited amount of resources. And the critics who say we have to worry about the debt are right in emphasizing the economics of scarcity, that we have a limited amount of resources. But the issue isn’t whether to cut back; the issue is how we spend our money, because cutting back would weaken the economy, but reallocating our money, more money for those who are unemployed—remember, we have one of the worst systems of social protection, unemployment insurance, of the advanced industrial countries. We are a whole group of people called the ninety-niners, who have come to the end of their unemployment benefits and are being, you know, left to fend for themselves. So, what we really need to do is to rethink how we spend the money, make sure that we spend the money in a way that will energize our economy. Spending money in Afghanistan, paying money for contractors, are not the way to energize our economy and make our economy strong, competitive for the long run.

AMY GOODMAN: How much do you think a stimulus should be in this country?

JOSEPH STIGLITZ: Well, I think we really need $400, $500 billion a year. Part of the reason why we should try to keep those kinds of numbers in mind is to realize that we have a federal system, about a third of all spending is at the state and local level, and the states have balanced budget frameworks, which mean when the revenues go down, they have to cut back spending or raise taxes, which is very difficult in the current environment. And their revenues are going down. They depend very heavily on property taxes. Values of real estate have gone down 30, 40 percent, in some places 50 percent. And the result of this is that we’re laying off teachers. We’re laying off basic—those who provide basic services. So, while the government is coming to the end—the federal government is coming to the end of the stimulus, the states are retracting. We saw that in the September numbers on jobs. Sixty-seven thousand private-sector jobs were created—not enough for the new entrants in the labor force, less than half the amount we needed. But we lost, in total, 95,000 jobs. In other words, there was about a 140,000 loss in the public sector, predictable—I talk about that in my book—predictable, unless we find some ways of making up for their shortfall.

AMY GOODMAN: And you say the stimulus would do that?

JOSEPH STIGLITZ: If we have another stimulus, it could do that.

AMY GOODMAN: So why don’t you think President—since that even in his own interest—I mean, when you see the Democrats caving, falling all over the country, what looks like the predictions for this election.

JOSEPH STIGLITZ: You know, I said that that’s what we should have done in the first round of stimulus, because it was so clear where we were going.

AMY GOODMAN: So, who’s not listening to you? President Obama? Timothy Geithner? Larry Summers, now gone?

JOSEPH STIGLITZ: I think—you know, let me be frank. I think what happened is that some of these people who helped create the crisis, who, you know, were in favor of the deregulation, who didn’t do their job regulating the banks that they should have done—

AMY GOODMAN: Naming names here?

JOSEPH STIGLITZ: Well, you can figure out who those are.

AMY GOODMAN: No, no, you tell us.

JOSEPH STIGLITZ: Well, well, Geithner was the head of the New York Federal Reserve Board, whose responsibility is overseeing New York banks.

AMY GOODMAN: Now the Treasury secretary, Timothy Geithner.

JOSEPH STIGLITZ: And we know Larry Summers was—you know, his great achievement was passing the law that deregulated—made sure that derivatives, these risky securities that led to the downfall of AIG, costing $180 billion—his great achievement was to make sure that this was not regulated, not regulated as a gambling product, not regulated as an insurance product, not regulated as securities.

Well, having created these problems, they had an incentive, quite frankly, to try to say this is—you know, “The problems are not that deep. All we have to do is fix the banking system. You know, there’s been an accident. Who could have predicted this?” And the answer is, a lot of us did. But it was something that happened to the banking system, rather than something the banking system did to us. So their incentive—this is a problem of accountability—their incentive was to try to say, “OK, we’ve had an accident. We put the banks into the hospital. We give them a little money. Let’s not try to interfere how they spend the money, because that’s not the way we do things,” so that they could take that money, rather than recapitalize, give it out in bonuses or dividends. But we just put it in the hospital for a couple years, and meanwhile, we have this moderate-size stimulus. But then, year-and-a-half later, two years later, the banks have recovered, and we go back to where we were before 2007.

Well, reality is that the economy was sick before that, and you can’t go back to 2007. And now we are at the end of the two years. It’s so clear that the economy is not back to health and that 200—that two-year stimulus was too small, not well enough designed, and we’re left in the situation that we have today, where the economy clearly is—continues to be sick, not in the sense that the banks are making profits again—Wall Street is not doing badly—but sick in the real sense: one out of six Americans who would like a full-time job cannot get one. That is a sick economy, in my mind.

AMY GOODMAN: Nobel Prize-winning economist Joseph Stiglitz, his book Freefall is just out in paperback, subtitled America, Free Markets, and the Sinking of the World Economy. So let’s go to the world economy. There have been a wave of protests across Europe against the so-called austerity measures and budget cuts in several European countries. In France, workers are striking for the seventh straight day over pension reform. In Britain, the government is preparing to reveal the biggest program of budget cuts in decades. Unions held a rally in London Tuesday to protest the cuts.
BRENDAN BARBER: These cuts will lose over a million jobs. And let’s be clear, this is not an economic necessity, but a political choice that they’re making.
TONY WOODLEY: It’s absolutely crucial at the moment that we don’t allow our public sector to be assassinated and decimated, not just because public services will be affected, but because the whole of our country’s economy will be—may be leading for a double-dip recession. We may not recover for many years to come.
AMY GOODMAN: That’s Britain. Your response, Joe Stiglitz?

JOSEPH STIGLITZ: I’m terribly worried, not just for Britain, but for the world economy. You know, there was a moment after Lehman Brothers fell, the world came together. We were all Keynesians. That is to say, we all knew that what the economy needed was each country had to stimulate their economy. That moment of global consensus is gone. And what is going on now is, in a very large number of countries, that we’re going back to what I call Hooverite policies. I mean, we’ve tried this experiment, where you have conservatives say, “OK, the deficit has gone up, and if we’re going to restore confidence, we have to bring down the deficit by cutting back spending.” This is an experiment we’ve tried over and over again. After the stock market crashed, Hoover succeeded in bringing us into the Great Depression by exactly that kind of reasoning.

What happens is interesting: it’s self-defeating. Because the economy gets weaker, the deficit—tax revenues go down, the deficit doesn’t get that much better. But meanwhile, because the spending goes down, the economy—jobs get destroyed, economy gets weaker and weaker, confidence gets destroyed, not restored. Because we live in a globally integrated economy, what happens in Europe will affect us. President Obama, many other leaders who had hoped that one of the ways that the US economy would be restored would be through exports, but if Europe is weak, we’re not going to be able to export.

AMY GOODMAN: This is a question we just got submitted to our Facebook page from Stevia Hawkins in Atlanta, Georgia: “Some people on the right are labeling the French uprising as the ‘dangers of socialism.’ What would you say to them?”

JOSEPH STIGLITZ: No, what they’re asking is, “We need social protection.” You know, workers individually can’t control the economic environment. You know, in the old economy, agriculture economy, you could work your field, you were still buffeted by vagaries in weather, international prices, but you could always get a job, because you could work your own field. But in a modern economy, if firms are firing, you have no choice. You know, there are very limited opportunities that the individual has. So it is the responsibility of state, of the government, to maintain the economy at full employment. And we recognized that in the Full Employment Act of 1946. Unfortunately, we are not living up to the commitment we made in 1946 to maintain the economy at full employment. We have, as I said, one out of six workers who are unemployed. Increasingly, a large number are unemployed now for over six months.

AMY GOODMAN: Joe Stiglitz, we just have time for one question, last question, which is about China raising its interest rates for the first time in nearly three years, coming a day after the Treasury secretary vowed not to devalue the dollar to boost the economy. Explain the significance of this.

JOSEPH STIGLITZ: Well, the one source of strength in the global economy has been the emerging markets. And they’ve been doing very, very well. The problem is that the Federal Reserve has been letting forth a lot of liquidity in the hope that it would reignite the American economy. But the administration and Federal Reserve did not fix the banking system, did not deal with the mortgage problem, that we were talking about before. So the money isn’t going into the American economy. The lending is actually below what it was in 2007. In a globalized economy, the money is looking for the best place to go. And where is it finding it? In the emerging markets.

So, the irony is that money that was intended to rekindle the American economy is causing havoc all over the world. Those elsewhere in the world say, what the United States is trying to do is the twenty-first century version of “beggar thy neighbor” policies that were part of the Great Depression: you strengthen yourself by hurting the others. You can’t do protectionism in the old version of raising tariffs, but what you can do is lower your exchange rate, and that’s what low interest rates are trying to do, weaken the dollar. The flood of liquidity abroad is trying to push the exchange rates abroad. And they say—they’re saying, “We can’t allow that.”

AMY GOODMAN: And thirty seconds. China, in particular?

JOSEPH STIGLITZ: Well, in the case of China, in particular, if it slows down significantly, it’s going to be bad for the US economy, not just directly, but China has been the support for Latin America, Africa. China has become the real engine of global economic growth. If it slows, Africa, Latin America slows, and that means American markets all over the world are going to have difficulties.

AMY GOODMAN: We’re going to leave it there. Joseph Stiglitz, winner of the Nobel Prize in Economics, his book Freefall is just out in paperback, America, Free Markets, and the Sinking of the World Economy.


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GNHUSA At the Jon Stewart Rally

When we heard about the Jon Stewart Rally to bring back sanity, we thought, what could be more sane than a good government that makes decisions based on the well being of the people and planet? Plus, laughter (the good kind!) is certainly a boost to anyone’s personal happiness.

So off we went, to the October 30 Rally to Bring Back Sanity and/or Restore Fear.  By now, you’ve probably seen lots of photos and heard other reports.  It was an absolutely wonderful, awesome time.

And, our Gross National Happiness signs were very well received (even though our signs weren’t very funny).  We handed out flyers, and had some great conversations with a diverse group.  Estimates of attendance at the rally ranged up to @ 300,000 — and I can personally attest that it was very, very crowded — so at a certain point, we decided to pull our signs down and stop trying to walk around.  But before that point, everyone we talked to about GNH was right there with us.  Some knew about the concept already, and some didn’t, but all agreed it is an idea that makes fundamental sense.

Today, I’m exhausted.  I’m recovering from the long drives there and back, and coming down a bit from a real emotional high.  It was fabulous to be with such a large, polite, happy, caring crowd.  And it was fabulous to experience the reality that the time for GNH has arrived.  The public everywhere — from Florida to Kentucky to Minnesota, from Virginia to California, from North Carolina to Pennsylvania and Hawaii — is ready to embrace these ideas.

The Stewart rally showed me: 1) our time is now and 2) we can have fun with our movement!

Natural Capital Project

Name You Need To Know: Natural Capital Project

Kerry A. Dolan

GREENTECHPLUS

Oct. 29 2010 – 8:34 pm | 468 views | 0 recommendations | comment

For decades environmentalists have begged governments and business to take account of disappearing forests and the dwindling global water supply when building roads, apartment complexes and shopping malls. But until recently it’s been difficult to put a truly measurable value on what are often threatened natural resources. The Natural Capital Project, a non-profit venture led in part by scientists from Stanford University, has changed that. Its software tool, called InVEST, helps to map out the value of natural land or seascapes—assets the group calls “natural capital.” The government of China is using InVEST  to help with its goal of zoning 25% of its land for conservation purposes.

Natural Capital Project’s efforts to put a value on natural resources are already making a difference in the Andes (with water supply issues), in Hawaii (with land use questions), in Indonesia and in China. Corporations like Nissan and Dow Chemical and two dozen others have approached the group for its expertise. That’s why I believe the Natural Capital Project is one of the Names You Need To Know In 2011 . This posthere explains what we at Forbes are aiming to do with our project—in essence, gather reader feedback and input to figure out who and what will have a big impact in the year ahead.  Please do comment  below or on theNames You Need To Know page.

I’ve written a bit about the Natural Capital Project and Gretchen Daily, one of its directors, here. “This is applicable just about everywhere,” says Daily, a professor of biology at Stanford who recently won a Heinz Award from the foundation run by philanthropist Teresa Heinz (wife of Sen. John Kerry) for her work since launching the Natural Capital Project in 2006. Also working with Daily and folks from Stanford’s Woods Institute For the Environment are University of Minnesota’s Institute on the Environment , the Nature Conservancy and World Wildlife Fund .

“This kind of work has not been done before,” says Luis Solorzano, an ecologist and evolutionary biologist who works for the Gordon and Betty Moore Foundation, which has funded Natural Capital Project to the tune of several million dollars.  ”They are building models that require the minimum amount of data – data you could get from anyplace in the world. That simplicity is powerful,” says Solorzano.

Corporations are interested in the group’s analysis tools because for some, their viability depends on continued access to resources like water. Nissan approached Natural Capital because it wanted to do a check on its supply chain and how it impacts the environment. “We found that they rely really, really heavily on water, and they were completely baffled by this,” says Heather Tallis, lead scientist for the project. “They asked if this was a problem and we said ‘Yes!’”  Dow Chemical’s interest in the tools stemmed from its unused landholdings, which have become a tax burden in some cases. Dow and others like Rohm & Haas and Exxon are looking for ways to manage the land instead of selling it, Tallis explains.

Various arms of the United Nations are giving their stamp of approval to the process that Natural Capital group is taking. Mary Ruckelshaus, the managing director of Natural Capital Project, hopes to convince the World Bank and the Inter-American Development Bank  to adopt its approach as part of the banks’ decision making process. The group also has plans to incorporate its findings into Google’s Earth Engine project.

What do you think? Is Natural Capital Project a name you should know?  Are there other natural resource-focused groups or approaches we should be looking at in 2011? Please chime in with comments. We’re interested to hear your opinions and tap your expertise.

Read story at Forbes.com

Natural Capital Project Website

Government officials, conservation professionals, farmers, and other land owners make decisions about how to use their land all the time. Yet, never before have any of these groups had a systematic way to demonstrate the future costs and benefits of their decisions for people and the environment. In its most ground-breaking effort, the Natural Capital Project aims to meet this challenge with InVEST, a new tool that can model and map the delivery, distribution, and economic value of life-support systems (ecosystem services), well into the future. The tool will help users visualize the impacts of potential decisions, identifying tradeoffs and compatibilities between environmental, economic, and social benefits.
Go to Natural Capital Project Website
Go to InVEST webpage