After the 2007 financial crisis, most macroeconomists advocated policies to restore economic growth, disregarding the constraints imposed by nature. Because standard macroeconomic models ignore environmental constraints, we propose reviving Harrod’s dynamic model as a useful abstraction of the dialectic of an evolving macroeconomy. Harrod’s model describes how environmental constraints can push the economy into recession, and it explains why traditional macroeconomic policies are unable to put a resource-constrained economy back on a full employment growth path. By clarifying the dialectic conflicts between desired economic growth and natural growth, Harrod’s model also reveals what types of policies can achieve full employment in a resource-constrained economy.
BayonDenisFlipoFabriceSchneiderFrançois. 2010. La Decroissance: 10 Questions pour Comprendre et en Debattre. Paris: La Découverte.
2.
BlanchflowerDavid G.OswaldAndrew J.2000. Well-being over time in Britain and the USA. NBER Working Paper No. w7487, January.
3.
BouldingKenneth E.1966. The economics of the coming spaceship Earth. In Environmental Quality in a Growing Economy, ed. JarrettHenry3–14. Baltimore, MD: Resources for the Future/Johns Hopkins Press.
4.
CooteAnnaFranklinJane, eds. 2013. Time on Our Side: Why We All Need a Shorter Working Week. London: New Economics Foundation.
5.
CooteAnnaFranklinJaneSimmsAndrew. 2010. 21 Hours: Why a Shorter Working Week Can Help Us All Flourish in the 21st Century. London: New Economics Foundation.
6.
DalyHerman, ed. 1973. Toward a Steady-State Economy. San Francisco: W. H. Freeman and Company.
7.
DalyHerman, ed. 1980. Introduction to the steady-state economy. In Economics, Ecology, Ethics Essays Toward a Steady-State Economy, ed. Herman Daly, 1-31. San Francisco, W.H. Freeman and Company.
8.
DalyHerman, ed. 2014. From Uneconomic Growth to a Steady-State Economy. Northampton, MA: Edward Elgar.
9.
DeweyJohn. 1897. My pedagogical creed. School Journal54 (January): 77–80.
10.
DiazDelavaneMooreFrances. 2015. Temperature impacts on growth warrant stringent mitigation policy. Nature Climate Change6 (160): 127–31.
11.
DolanPaulPeasgoodTessaWhiteMathew. 2008. Do we really know what makes us happy? A review of the economics literature on the factors associated with subjective well-being. Journal of Economic Psychology29: 94–122.
12.
DomarEvsey. 1946. Capital expansion, rate of growth, and employment. Econometrica14 (2): 137–47.
13.
EasterlinRichard A.1995. Will raising the incomes of all increase the happiness of all?Journal of Economic Behavior and Organization27: 35–47.
14.
FosterJohn Bellamy. 1999. Marx’s theory of metabolic rift: Classical foundations for environmental sociology. The American Journal of Sociology105 (2): 366–405.
15.
FosterJohn BellamyClarkBrett. 2018. The robbery of nature: Capitalism and the metabolic rift. Monthly Review70 (3): 1–20.
16.
FosterJohn BellamyClarkBrettYorkRichard. 2010. The Ecological Rift. New York: Monthly Review Press.
17.
FreirePaulo. 1970. Pedagogy of the Oppressed. New York: Continuum.
18.
FreyBrunoStutzerAlois. 2000. Happiness, economy and institutions. Economic Journal110 (446): 918–38.
Georgescu-RoegenNicholas. 1971. The Entropy Law and the Economic Process. Cambridge, MA: Harvard University Press.
21.
GRAIN. 2014. Hungry for land. Report on small farm productivity, GRAIN, May.
22.
HarribeyJean-MarieQuironPhilippeRotillonGilles. 2012. Les enjeux d’une transformation écologique qui soit sociale. In Changer d’Économie!, ed. Économistes Atterés, 69–100. Paris: Babel.
23.
HarrodRoy F.1939. An essay in dynamic theory. The Economic Journal49: 14–33.
24.
HarrodRoy F.1948. Towards a Dynamic Economics. London: MacMillan and Company Ltd.
25.
Holt-JimenezEric. 2017. A Foodie’s Guide to Capitalism. New York: Monthly Review Press.
26.
HowarthRobert W.SantoroReneeIngraffeaAnthony. 2011. Methane and the greenhouse-gas footprint of natural gas from shale formations, a letter. Climate Change106 (4): 679–90.
27.
KeynesJohn Maynard. 1936. The General Theory of Employment, Interest, and Money. New York: MacMillan.
28.
KleinNaomi. 2014. This Changes Everything: Capitalism vs. the Climate. New York: Simon & Schuster.
29.
LohmannLarry. 2006. Carbon trading: A critical conversation on climate change, privatisation and power. Development Dialogue (48), The Dag Hammarskjold Centre, September.
30.
MagdoffFred. 2015. A rational agriculture is incompatible with capitalism. Monthly Review66 (10): 1–18.
31.
MarxKarl. 1867. Das Kapital, vol. I. Hamburg: Verlag von Otto Meissner.
32.
MarxKarl. 1981. Capital, vol. III. New York: Vintage.
33.
PolanyiMichael. 1958. Personal Knowledge: Towards a Post Critical Philosophy. London: Routledge.
34.
Rising Tide North America. 2009. Hoodwinked in the hothouse: False solutions to climate change. Pamphlet downloaded from http://www.risingtide.org, November.
35.
SatoRyuzo. 1964. The Harrod-Domar model vs the neoclassical growth model. The Economic Journal74 (294): 380–7.
36.
SchorJuliet. 2013. The triple dividend. In Time on Our Side: Why We All Need a Shorter Working Week, eds. CooteAnnaFranklinJane, 1–31. London: New Economics Foundation.
37.
SchumacherE. F.1973. Small Is Beautiful: Economics as if People Mattered. New York: Harper & Row.
38.
SchumpeterJoseph. 1934. The Theory of Economic Development. Cambridge, MA: Harvard University Press.
39.
ShindellDrew. 2015. The social cost of atmospheric release. Climate Change130 (2): 313–26.
40.
SmithAdam. 1776 [1976]. An Inquiry into the Nature and Causes of the Wealth of Nations. Chicago: University of Chicago Press.
41.
SolowRobert. 1956). A contribution to the theory of economic growth. Quarterly Journal of Economics70 (1): 65–94.
42.
VeenhovenRuut. 1988. The utility of happiness. Social Indicators Research20: 333–54.
43.
VictorPeter. 2008. Managing Without Growth: Slower by Design, Not Disaster. Northampton, MA: Edward Elgar.
44.
WackernagelMathisWackernagelMathisSchulzNiels B.DeumlingDianaLinaresAlejandro CallejasJenkinsMartinKaposValerieMonfredaChadLohJonathanMyersNormanNorgaardRichardRandersetJørgen. 2002. Tracking the ecological overshoot of the human economy. Proceedings of the National Academy of Sciences99: 9266–71.
45.
World Wildlife Fund. 2008. Living Planet Report 2008. Gland, Switzerland: World Wildlife Fund for Nature.
