The End of Growth, by Richard Heinberg

Resource depletion expert Richard Heinberg turns his considerable intellectual energies to the subject of economic expansion and its necessary counterpart, expanding debt. The End of Growth gives a new slant on the modern economy, one that is persuasively argued and highly convincing. Heinberg’s careful research and detailed references make his new book essential reading.

Richard Heinberg is a well-known thinker and writer on all things to do with resource depletion. His book, The Party’s Over (2003), discussed the inevitable peak and decline in oil, and the impacts this would have on the global economy, society and the destiny of humanity. The economy, and all that we enjoy from it, is predicated on the notion of cheap oil. Peak oil doesn’t mean that the substance will run out, but its price will certainly rise inexorably, leading to dramatic changes in the way we live, think and work.

In his latest book, The End of Growth, Heinberg tackles the notion that economic growth will continue without limits. Economic growth is a modern day article of faith, but as Heinberg demonstrates, economic growth is (perhaps ironically) based on expanding debt. Heinberg argues that the huge growth in debt, and the expansion of the financial industrial complex, has reached a peak. Modern day economies simply can’t be burdened with further levels of debt.

The case of America is a highlighted example. Their national debt has now risen to 100 per cent of GDP, a total of 14 trillion dollars. That is, the country owes what its economy makes in a year. Added to this are expanding interest payments. An increasing percentage of the country’s tax receipts must be used to service interest that is charged on its 14 trillion dollars of debt. This is putting further pressure on the government’s budget, making it difficult to meet other funding commitments for its citizens such as welfare and healthcare. The US, according to Heinberg, is at serious risk of getting stuck in a debt trap, with interest payments overwhelming the government’s expenditures.

Much of Heinberg’s writings read like accessible philosophy. He distils his wide reading in such a manner that is always compelling and informative. He also has a gift for arranging information to highlight historical patterns and trends. His arguments are well backed up with the data and are highly persuasive.

The End of Growth is for the most part an economic history. It also examines in close detail a lot of the major economic ideas or beliefs of the last fifty years. Most notably, it looks at the impact that cheap and easily extracted oil has had on the economy. Another philosophical strain in the book is how over time the economy has become decoupled from nature. It’s a popular economic assumption that the economy can continue to expand without having to worry about environmental impacts or resource depletion. As you can expect, Heinberg thinks this is wishful thinking.

For serious students of economics, the environment and resource depletion, Richard Heinberg has provided another indispensable book.

The End of Growth: Adapting to Our New Economic Reality, by Richard Heinberg. Published by New Society Publishers. ISBN: 978-0865716957