Building a strong foundation for a new economy

I’ve been thinking and talking a lot lately about the economy, economic stimulus ideas, and the seeming failure of a consumer economic model.  I found it interesting, then, to see a blog post by Robert Reich today that talked about the implications of Keynesian economics, deficit spending and opportunities to protect natural resources.  While I didn’t know all the correct economic terms for what I had been thinking, Reich offers some strong arguments for reshaping the American economy.  And reshape it we must if we want to have a sustainable society over the long-term that isn’t dependent on consumption and the resulting ecological destruction that it causes in the US and abroad.

So what is it that can replace manufacturing as the basis of an economy (since consumerism obviously didn't work)?  Turns out there are high-wage, high-skill jobs that cannot be outsourced to other countries, and that would bring about benefits far beyond stimulating the economy.

As Reich argues, natural resources and other public goods are begging for investment:

“What we most lack, or are in danger of losing, are the things we use in common - clean air, clean water, public parks, good schools, and public transportation, as well as social safety nets to catch those of us who fall. Common goods like these don't necessarily use up scarce resources; often, they conserve and protect them.

Yet they have been declining for many years. Some have been broken up and sold as more expensive private goods, especially for the well-to do - bottled water, private schools, security guards, and health clubs, for example. Others, like clean air, have fallen prey to deregulation. Others have been wacked by budget axes; the current recession is forcing states and locales to axe even more. Still others, such as universal health care and pre-schools, never fully emerged to begin with. “

Reich explains that investing in common goods, like cleaning up our natural resources, is a way to restore the economic structure of the United States over the long term.  I agree.  I think it provides an opportunity to create a new economy for the future that meets the interlocking challenges of global climate change, peak oil, and economic collapse.  But it has to be done appropriately, and too many discussions remain focused on quick solutions that will get Americans back into the shopping malls.  Neither we, nor the rest of the planet, can afford, economically or ecologically, to continue to consume at the level we currently consume.  We are now paying the price for the excessive lifestyles we have adopted here.

There are numerous ideas being discussed in the current economic stimulus proposal that would help us move in a new direction – especially the green jobs programs that are being promoted.  Wildlands CPR, for example, is working with more than 100 organizations to promote natural resources/watershed restoration jobs as part of any economic stimulus package that gets adopted by the Obama Administration.  The backlog of investment in the American commons is too large to measure – billions of dollars needed here, billions there.  We can rebuild a solid economic foundation for this country, for decades, by investing in green jobs, and other jobs to benefit the common good, that cannot be outsourced.  And through those jobs, perhaps we can also rebuild or create a new ethic in this country that isn’t based on consumerism and keeping up with the Joneses, but instead on making sure the Joneses, and everyone else, have access to clean air, clean water, good schools, rational transportation systems, and affordable, effective healthcare.

It’s exciting to think about what this stimulus package could look like, and to identify opportunities to transform the American economy in a proactive, restorative way.  But it won’t be easy.  Let’s hope those making the decisions are considering Mr. Reich’s excellent ideas as well.