the economics of kindness part 2

Guy DaunceyApril 2017

PART TWO

3. Nature and Climate

For conventional economists, Nature is an “externality”

Extinction is an externality

Pollution is an externality

The climate crisis is an externality

Massiveecological ignorance

TACKLING ECOLOGICAL IGNORANCE

At any college or university, starting in 2020,

require that every entry student must have passed a fundamental course in

ECOLOGY 101

Before Ecology 101

After Ecology 101

All studentsAll candidates for School Boards

All new teachers, school board staffCandidates at elections

Candidates for non-profit leadership roles

Kate Raworth

A Business Board Meeting

A Global Sustainability Conference

Can the selfish drive to maximize capital gain

ever coexist with the planetary need for capital to operate in harmony with

nature?

The End of Growth

Feudalism Capitalism Cooperative

The End of Growth

UNILEVER

CLIMATE CRISIS

CLIMATE CRISISDon’t you go

worrying yourself, my dear. The

economists tell me it’s just another

externality.

Farewell and Thank You, Fossil

Welcome, Solar Age!

A Roadmap for Rapid Decarbonization

Science, March 24 2017

Atmospheric CO2 levels accelerate upwards, smashing recordsBarry Saxifrage National Observer| April 10th 2017

0 metres sea-level rise

By 2025, Holland is preparing to only permit the sale of electric

GUSSING, AUSTRIAis ALREADY

100% RENEWABLE

The City of COPENHAGENvoted to BECOME

100% CARBON NEUTRAL by 2025

The City of OSLOvoted to REDUCE its GHGs

By 95% by 2030

CITY OF FRANKFURTvoted to go

100% RENEWABLE by 2050

CITY OF VANCOUVERvoted to go

100% RENEWABLE before 2050

CITY OF VICTORIAvoted to go

100% RENEWABLE by 2050

DISTRICT OF SAANICHjust voted to move toward100% RENEWABLE by

Almost Twice as Many Green Jobs in Canada

By Guy Dauncey

800,000 fossil fuel jobs lost 1,000,000 green energy jobs gained

The Biggest Global Climate Solution You Have Never Heard Of

Massive acceleration to achieve 100% renewable energy needs an investment of

$1.5 to $2 trillion a year. $300 billion a year is needed in public grants.

Chief EconomistWorld Future Council

“Climate change initiatives offer a $5-7 trillion funding opportunity for capital markets.”

Mark Carney, Governor of the Bank of England

Established to keep the global temperature increase below 2°C by investing in

low-emission climate-resilient development.

Quantitative Easing for the Climate

The World’s Central Banks

Issues $300 billion a year in Green Climate Bonds

World’s Central Banks create

$300 billion a year to buy the bonds

Issues $300 billion a year in Green Climate Bonds

World’s Central Banks create

$300 billion a year to buy the bonds

$300 billion a year

Distributes $300 Billion a year as leverage to attract

private capital

Distributes $300 Billion a year as leverage to attract

private capital

which invests $1.2 trillion a year

in renewable energy and climate solutions

Not an inflationary riskGlobal economic output: $80 trillion a year

Global Central Banks Climate Stimulus$300 billion a year

0.375% monetary increase a year

An Economy in Harmony with Nature

The Prime Causes The Solutions“Humans first” mindset. Ecological ignorance.

Ecology 101 for college, business, public office.

Pursuit of growth, GDP Harmony with Nature goals & indicators.

Fear of unemployment, poverty Full employment policy. Tackling inequality. Jobs. Basic Income. Worksharing. Wealth-sharing.

Population increase Population control aid in developing world

Self-interest business = capital maximization

Social businesses

Self-interest banks = capital maximization

Social banks. $2 million Sustainability Review Board

Consumerism and waste Circular Economy, Zero Waste

Tax policy supports extraction and exploitation

Eco-Taxation. Close the tax havens. Ecological tariffs.

Weak or no regulations, local, national, global

Eco-Regulation

Macro-economic goals for inflation, GDP New macro-economic goals. QE for Nature and

Climate. Fossil fuels = climate crisis 100% renewable energy

Weakness of ecological democracy Ecological democracy. Strong NGOs, eco-activism

Corporate control of the media Democratic media reform

Democracy corrupted by big corporations

Campaign finance reform

Ecology 101 for schools, college, business, public office.

Social businesses

Eco-Regulation

Social businesses

Eco-Regulation

Social businesses

Eco-Regulation

Social businesses

Eco-Regulation

Social businesses

Eco-Regulation

Social businesses

Eco-Regulation

Social businesses

Eco-Regulation

Social businesses

Eco-Regulation

Social businesses

Eco-Regulation

Social businesses

Eco-Regulation

Social businesses

Eco-Regulation

Social businesses

Eco-Regulation

Social businesses

Eco-Regulation

Social businesses

Eco-Regulation

4. Poverty, Inequality

LONELINESS

TEN BIG POVERTY SOLUTIONS

Affordable housing

Families & children

Basic Income, monthly or annual

Guaranteed work and labour unions

Community wealth

Health and dental

Disability and poverty compassion

Individual endowments

Earn higher wages

Justice in taxation

A: Affordable Housing for All

Homeless

Couch-surfing

Living with the Parents

Excess money coming into the market

= price InflationInheritances

Foreign moneyTax-evading

Quantitative Easingmoney

Offshore tax evasion in Vancouver real

estateIan Young, South China Morning Post

2/3rds of Canadians.Parents own

property.They will inherit.

1/3rd of Canadians.Parents do not own property.

They will never inherit.

2/3rds of Canadians.Parents own

property.They will inherit.

Seattle’s property tax levy has enabled the construction of 12,500

apartments with below-market rents.

An affordable housing tax levy

Escalating property taxes on second homes not rented out.

Limit AirBNBs to ‘in-house’

67% of Vancouver AirBNBs are for whole house or apartment

Vancouver AirBNBs

Escalating property transfer tax on top-end real estate sales

Speculation tax on properties flipped within a year

An Inheritance Tax on Estates

above a certain value

Gather a big pool of new revenue

and build 10,000 to 20,000 units of affordable housing in

BC a year.

B: Basic Income for All

Monthly, or Annually?

Basic Income

C: Community

Wealth

D: Disability & Poverty Compassion

E: Earn Higher Wages

F: Families and Children

G: Guaranteed Work,Labour Unions

Weekly Working Hours

H: Healthcare & Dental for All

I: Individual Endowments

Tony Atkinson

I: Individual EndowmentsA Personal Capital Endowment

Average $20,000 either at birth (Baby Bonds, held in trust) or at age

A Commons Capital Endowment

A % of shares from every IPO (Initial public offering) is channeled into

public ownershipor

Firms are required to issue 1.5% new shares

each year, placed in a Citizens’ Trust.

Piketty’s Wealth Tax Ideas

Net worth TaxUp to $1.3 million 0%Up to $6.5 million 1%Above $6.5 million 2%Above $1.25 billion 5-10%

J: Justice in Taxation• More progressive rate structure, top

rate 65%• Progressive lifetime capital gains

tax, including inheritances• End tax credits and deductions that

disproportionately benefit the rich• Close every Tax Haven

Abolish Every Tax Haven

Offshore tax evasion in Vancouver real

estateIan Young, South China Morning Post

Tax Havens – Tariffs and Sanctions

Swiss banks hold €500billion of French, German and Italian money, 80% of which still evades taxes.

This represents a tax loss of €15 billion to these three countries.

These three countries could recover their loss by a 30% punitive trade tariff on Swiss exports.

The financial sector is 11% of Switzerland’s GDP, but tax evasion only contributes 3%, or $15 billion a year.

The Swiss people would quickly respond to such tariffs, and organize a referendum to end the Swiss banks tax evasion activities.

Average entry-level factory worker

Average CEO of a large corporation

What do you think their wage ratio is?$xx : $xx

What do you think their wage ratio SHOULD BE?

$xx : $xx

What do Americans think the CEO/Worker pay gap is?

What people think it is

What people think it should be

Strong Democrats 36 to 1 5 to 1Strong Republicans 40 to 1 12 to 1High School drop-outs 60 to 1 5 to 1Graduate degree 40 to 1 12 to 1Actual 829 to 1

What people think it should

beStrong Democrats

36 to 1 5 to 1Strong Republicans

40 to 1 12 to 1High School drop-outs 60 to 1 5 to 1Graduate degree

40 to 1 12 to 1Actual 829 to 1

beStrong Democrats

How do we design our future economy?

“If it’s not fun, it’s not sustainable.”- Guy Dauncey

The Gratitude PledgeIn deepest gratitude for having been given the gift of Life, and the wonders that accompany it;In gratitude for the Earth our home, for Nature, and all the incredible species we share her with;In gratitude for all who work to make this world a better place, and all who have done so in the past, stretching far back into the mists of time;In gratitude for the freedom I have to choose my path as I take my turn in carrying the baton of life;In gratitude for these gifts, I PLEDGE that I will use my life to serve the betterment of all living beings,the healing of suffering, and the restoration of our beautiful planet the Earth.

From Journey to the Future: A Better World is Possible, by Guy Dauncey

www.earthfuture.comwww.journeytothefuture.ca

www.slideshare.net/GuyDaunceywww.thepracticalutopian.ca

“A joyous, hope-filled manual.”- Bill McKibben

350.org

Guy Dauncey 2013 www.earthfuture.com

Guy Dauncey

www.earthfuture.com

the economics of kindness part 2

Economy & Finance