Herman Daly: Towards A Steady-State Economy

On theoildrum.com, we discuss the particulars of our energy supply/consumption situation. Less frequently do we have content outlining potential solutions that may be necessary to mitigate macro problems facing human systems. This is such a post – adapted from a paper from last week’s Sustainable Development Commission written by Herman Daly, who popularized the term “Steady State Economy” over 3 decades ago. While it doesn’t discuss energy per se, it does get at the heart of how we value and use energy – for growth – and the systems underlying this growth.


It is doubtful we can adequately inform energy policy without addressing the linkages between equity, finance, taxation, and our end goals. I post this on theoildrum not only because Herman is one of my tribal elders but because his eloquence, courage and foresight on these issues have historically been, and continue to be, ahead of the curve. During his resignation speech from the World Bank, Herman recommended the Bank take “a few antacids and laxatives to cure the combination of managerial flatulence and organizational constipation giving rise to such a high-pressure internal environment”. To improve interactions with the external world he prescribed “new eyeglasses and a hearing aid.”

Nearly 15 years later, here is Professor Daly’s current synopsis on the state of economics, and prescription for change.

The Oil Drum