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Beyond Growth: The Economics of Sustainable Development by Herman E. Daly

Beyond Growth: The Economics of Sustainable Development Book Summary
Author: Herman E. Daly
Edition: Paperback
Audio: English (Original Language); English (Unknown); English (Published)
Published: 1997-08-14
ISBN: 0807047090
Number of pages: 264
Publisher: Beacon Press
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Book Reviews of the Beyond Growth: The Economics of Sustainable Development

Customer Review: The big ugly secret about economic dogma
Summary: 5 Stars

Daly, more than any other economist or writer on sustainability, makes clear the fallacies of traditional free-market thinking. The book illustrates very clearly why economic growth cannot be sustainable in a finite world. (Although he doesnt use the metaphor -- I'll borrow it from Edward Abbey -- the same logic explains why "sustainable" cell growth in humans is called "cancer.") Daly argues that traditional economic theory is mainly useful in only one of the three core areas of economy (the optimal price and allocation of scarce resources) and does not address in any meaningful way two other issues -- the distribution of resources and determining the overall scale of the economy that can be sustained within the biosphere. Particularly interesting is the essay on economist Nicholas Georgescu-Roegen, which describes all of the tenets of traditional economic theory that become untenable merely when one accepts the fact that the second law of thermodynamics (the law on increasing entropy) must apply to an economy just as it applies to the biological and physical world.

What makes Daly effective as a writer is the calm humility of his intellect. Economics has practically become a religion in our society (witness the dogmatic reviews of political/economic books on this site). However, unlike other economists, who get shrill and polemical when their dogma is challenged, Daly is willing to consider possible holes in his arguments, opponents' counterarguments, and unknowns. Of course, he shreds most counterarguments in his calm, polite way, but after reading other economists the openness is refreshing.

My one complaint is the disjointed nature of the book. Although certain themes run throughout each of the seven sections, some of the pieces were originally written as separate essays, and it shows. However, given the clarity of the writing (even on very technical subjects such as Soddy's views on the nature of money) that is ultimately forgivable.

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