The Importance of a States Economy - Research Paper Example

here Your here here here Steady Economics and Environmental Philosophy The importance of a ’s economy weighs significant value in on the environment and vice versa. Rightly so, the two coexist in the same habitat why should their survival not depend on each other. The term Steady-State Economy suggests a progressive stage from unstable to stable. Successful Steady-State Economy is mostly derived from population and the production and buying of product. The Environment a population lives in is also very important. The environment can limit the progression of Steady-State economy through a decrease in population due to pollution, over populated cities and depletion of natural resources to name a few. According to an article “CASSE proposes the establishment of a steady state economy with stabilized population and per capita consumption.” (U.S. Fed News Service) To begin let’s examine the significance the environment has on a state’s economy. Why is it important that the two thrive together to produce a stabilized economy, The environment and the economy rarely have traveled together on the same path. Gains in the economy come at the sacrifice of the environment. Protection of our natural resources hamstrings business development. Or so the argument goes. But what if by protecting special lands, cleaning up environmental problems and growing responsibly, we actually increase jobs, stop the population migration, and revitalize our communities? (DiBerardinis) According to an article published for Environmental Law the state of the environment plays a very significant role in the advancement or the downslide of the economy, The warning of "global environmental crisis" is being sounded more and more frequently by scientists, politicians, and other observers. The doomsday predictors of the 1960s, like ecologists Paul Ehrlich(1) and Rachel Carson,(2) have been joined by an ever-growing chorus of doomsayers in the 1990s.(3) Rachel Carson's concerns regarding pesticides were prominent in the early 1960s; today, concerns about the potential myriad of ecological effects from global warming predominate. Loss of biodiversity from habitat destruction, pollution, and other threats is also a major present concern.(4) The proliferation of environmental alarms has, as expected, been accompanied by claims of critics that the alarms are overstated.(5) Besides denying the existence or magnitude of environmental threats, these critics question the priorities of the leading environmental advocates and their focus on government regulation, rather than the market, to address those priorities.(6) Underlying the debate over whether humans' demands on the Earth have exceeded its ecological carrying capacity is a debate over the propriety of economic growth, the primary goal for rich and poor countries and for most international institutions.(7) The doomsayers generally see humans' unbridled pursuit of economic growth as a major root of all or most environmental evils; their critics generally see growth as providing a solution to environmental problems.(8) While this debate has continued, there has been increasing consensus behind the concept of "sustainable development," which became a global future through its adoption by the United Nations-sponsored Brundtland Commission in a 1987 report entitled Our Common Future.(9) That report defined sustainable development vaguely as development that "meet[s] the needs and aspirations of the present without compromising the ability to meet those of the future."(10) Although that concept has helped raise the prominence of environmental protection on national and global policy agendas, it has not unseated economic growth as the primary public policy objective. (Wenig) The impact of the environment is crucial to the survival of a state’s economy. There are many ways to help ensure the environment’s safety. There are organizations that rise up to protect natural habitat from extinction. There are organizations that rise up to ensure the proper use and distribution of natural resources. The key here is wanting to enable a better environment. The want process is the start of the action. A state’s community could help in the area of pollution in regards to “going green”. There are so many solutions in cleaning, homebuilding, and cars that provide eco-friendly solutions to the environmental issues. The environment is the responsibility of the people living in it. Many people tend to only think of their environment as their home and not in a more “global” way of thinking. Working together solves the majority of issues that arise. The environmental issue is no different. There are some organizations that feel the responsibility of enabling the environment and the economy, The Aluminum Association's Cans for Causes Program is pleased to assist SARAH Inc. in Guilford, Connecticut with their recycling efforts. SARAH Inc. has started a recycling program to keep more than 500,000 aluminum cans and bottles out of landfills, while providing jobs for special needs individuals. SARAH's mission is to provide advocacy, services and support for people with intellectual and other disabilities and to promote opportunities for full inclusion in their communities. "SARAH means the world to me because it has given me a job where I am with people and I am helping out the environment at the same time," says Anthony, member of SARAH Inc.'s recycling crew. SARAH has taken a "green" approach in the community by recycling five cent bottles and cans. (Targeted News Service) There are so many ways to get involved even if an individual feels as if he/she may not have the time, financial support of organizations like this is beneficial; as well as just in the case above just saving and donating aluminum cans instead of trashing them. The rate of the environment declination is of great importance to our participation in the survival of the environment. Steady-State Economy starts off first in minimal areas especially in a state that exists in instability. Growth on any level has a sequence of events that occur. The overall transformation of an economy will not happen overnight. The best way to begin is to start in sections of the economy that cause necessity. For example in the housing industry, affordability will increase home buying and career wealth in real estate. This is demonstrated here according to an article in The New York Times, The year 2005 was generally a good one for both sides of the Manhattan office market. Vacancy rates declined, and that was good for building owners. And rents increased, but at a restrained pace, so those looking to lease space were generally not under intense price pressure. In short, many real estate executives say, neither tenants or landlords currently have the upper hand. "We are at the sweet spot now, with a balanced marketplace," said Paul N. Glickman, an executive vice president at Cushman & Wakefield, a brokerage and services company. "Equilibrium state is usually defined as a vacancy rate between 7 and 9 percent, and that is where we are." According to statistics supplied by CB Richard Ellis, another brokerage and services company, at year-end the vacancy rate for Midtown stood at 9 percent and for Midtown South was 8.6 percent. But a sharply higher vacancy rate of 14.1 percent in the downtown market, defined as the area south of Canal Street, helped to raise the year-end average for all of Manhattan to 10.1 percent. Still, that was noticeably better than in 2004, when the average vacancy rate was 12.6 percent. Real estate executives said the improvement in the leasing market was driven by an improving economy in the city and growth in the number of office jobs. Since companies that expect to be hiring people often lease space in advance, the real estate effect is often felt before the actual job creation. (Holusha) The step by step growth displayed above is a beginning process. A process such as the one Manhattan experienced is one of hopeful contagiousness. A steady-state economy depends so much on jobs and products and consumption. It’s up partly to the leaders of the state to make sure the economy operates smoothly. Some states implement plans to stimulate their economy, “Washington State Stimulates Its Economy by Leveraging Recovery Act Funds to Create Jobs Across Multiple Industries.” (Benzinga Staff). Another way is for individuals to start new businesses. Entrepreneurs provide services and more capital for the economy, Kristen Lehouiller creates and sells colorful cloth handbags, dog collars and other accessories. Linda Zarli and her two sisters are looking to market their line of greeting cards. Christine Davis has launched Art in the Meadows, selling her line of hand-painted wooden bowls. One reason budding entrepreneurs continue to turn to MicroCredit-NH, he said, is because the organization has been "disconnected" from the worldwide credit crisis that has been plaguing businesses for the past several months. "We continue to tell people that we are a provider of loans, especially for micro-businesses," he said. "Still, we haven't got as many new loans over the past year just because of the wild [economic] climate. People are cautious taking on debt." (Kibbe) The financial crisis of debt has always been an issue that has plagued a state’s economy. How can individuals rid themselves of this destruction? The answer is to stay away. Economic downturns in moments survive from debt free environments. Establishing plans and programs to help the state’s population to rid themselves of debt is another solution. Are there any Steady-State economy where the environment and the population work together? Yes. According to an article, Based on the gradual withdrawal of monetary stimulus both regionally and globally, the UAE is set to gradually move from a stage of spare capacity and accelerating economic growth, to a stage of capacity constraints and steady-state growth, according to a report by EFG-Hermes, the region's leading full service investment bank. "The UAE economy has rapidly evolved from a youthful economy to one that is now showing signs of maturity. At present, oil production is running close to full capacity, the loan-to-stable resources ratio in the banking system is approaching its statutory limits, housing rents are becoming comparable to those in Europe and the US, and equity prices have more than kept pace with the rise in net earnings," noted Hany Genena, Senior Economist at EFG-Hermes and author of the report. He added, "As a result, we believe it is prudent to closely monitor investment expenditure at this stage of the cycle to avoid the build up of excess capacity. With financing sourced easily from the equity market, this risk will remain even if funding from the banking sector dries up." (Al Bawaba) Here presents evidence of the philosophy of the state and environment working together to progress growth. Another example is, The ever increasing population and aspirations for better living have exerted tremendous pressures on the natural resource base leading to its rapid degradation and depletion. Therefore, the concept of sustainable development encompassing a harmonious blend of resource exploitation, investment, technological progress and institutional change to sustain a growing level of well-being has assumed the utmost priority in development planning. (Pandey) There have been studies as well on steps taken to pursue and manage economic growth in failed economies, Considering the biophysical limits of the Earth, the notion growth can continue indefinitely is absurd. As the growth economy is becoming uneconomic and failing, the only option is to create a steady-state economy aimed at maintaining a sufficient stock of real wealth to sustain the population and the environment, argues Professor HERMAN DALY. The following article is the result of a lecture given at the United States Society for Ecological Economics (USSEE) conference on 1st June 2009, held in Washington, D.C. A steady-state economy is incompatible with continuous growth, either positive or negative growth. A downward spiral of negative growth, a depression such as we are entering now, is a failed growth economy, not a steady-state economy. Halting an accelerating downward spiral is necessary, but not the same as resuming continuous positive growth. The goal of a steady state is to sustain a constant, sufficient stock of real wealth and people for a long time. This leaves a non-growing or steady-state economy as the only long-term alternative. The level of physical wealth the biosphere can sustain in a steady state may well be below the current level. The fact recent efforts at growth have resulted mainly in bubbles suggests this. Yet current policies all aim for the full reestablishment of the growth economy. The question is, does growth any longer make us richer, or is it now making us poorer? (Daly) The issues are important, the results are wanted, the process is necessary. Failing economic situations should always look for Steady-State Economic situations to model after. Both Economy and Environment need each other to survive. Hopefully each state can make the two work together to benefit a global world. Works Cited Daly, Herman. "How to move to a steady-state economy from a failed-growth economy.(THE ECONOMICS REVOLUTION)." Pacific Ecologist. Pacific Institute of Resource Management. 2010. HighBeam Research. 15 Apr. 2011 . "UAE Economy Shows Signs of Maturity; Reaching Stage of Capacity Constraints and Steady-state Growth." Al Bawaba. Academy Newspapers Pvt, Ltd. 2005. HighBeam Research. 15 Apr. 2011 . "CENTER FOR ADVANCEMENT OF STEADY STATE ECONOMY FOR STEADY STATE ECONOMY." US Fed News Service, Including US State News. The Associated Newspapers of Ceylon Ltd. 2007. HighBeam Research. 15 Apr. 2011 . Kibbe, Cindy. "Budding entrepreneurs still taking the plunge: despite economy, business startups continue to New Hampshire.(ECONOMIC DEVELOPMENT)(MicroCredit-NH)." New Hampshire Business Review. Business Publications, Inc. 2009. HighBeam Research. 15 Apr. 2011 . "Washington State Stimulates Its Economy by Leveraging Recovery Act Funds to Create Jobs Across Multiple Industries." Benzinga.com. Accretive Capital LLC dba Benzinga.com. 2010. HighBeam Research. 15 Apr. 2011 . "Aluminum Association Partners with Sarah Inc. to Provide Jobs for Special Needs Individuals While Helping Environment." Targeted News Service. Targeted News Service LLC. 2011. HighBeam Research. 15 Apr. 2011 . Wenig, Michael. "Beyond Growth: The Economics of Sustainable Development." Environmental Law. Lewis & Clark Northwestern School of Law. 1998. HighBeam Research. 15 Apr. 2011 . Holusha, John. “In Commercial Leasing A State of Balance.” Thenytimes.com. The New York Times. 4 Jan. 2006. Web. 13 April 2011. Pandey, V K. "Operationalising Sustainable Development: Economic-Ecological Modeling for Developing Countries." Indian Journal of Agricultural Economics. Indian Society of Agricultural Economics. 2001. HighBeam Research. 15 Apr. 2011 . DiBerardinis, Michael. "Environment and economy must grow together." The Philadelphia Tribune. Philadelphia Tribune Co. 2004. HighBeam Research. 15 Apr. 2011 . Read More