Ecological Fiscal Reform

There once was a time we thought we could never run out of cod. It is frightening to consider that most current economic theories came at a time of perceived limitless resources. But could the earth’s environmental wounds launch a new economic theory? Or, in a more practical sense, could price actually reflect cost?

Our economic indicators value certain aspects while many others are ignored. Raising your own children, growing your own tomatoes and volunteerism are just a couple of examples of activities which benefit society and yet are completely ignored by economic indicators such as the Gross Domestic Product (GDP).

Our measures offer no differentiation between economic growth that is sustainable and economic growth that causes endless long-term problems. The situation can be likened to a farmer selling off his planting seeds and his machinery for short term profit. We need to look beyond our current economic indicators to measure the health and prosperity of...