Buddhist Economics
How would Buddhist economics differ from free market economics regarding energy use?
Free Market = consumers don't pay for their CO2 Buddhist = consumers pay 'pollution tax'
How would Buddhist economics differ from free market economics regarding "wealth"?
Free Market = outer wealth (material) is the only wealth Buddhist = outer and inner wealth work together (mindfully use resources to maximize happiness)
What is Pareto optimality and how does it differ from Buddhist economics?
Free Market = when one person is better off, someone else is worse off Buddhist = reduce the suffering of the poor to improve the well-being of all
What is the difference between the concept of "weak sustainability" embraced by free market economics and the concept of "strong sustainability" advocated by Buddhist economics?
Free Market- man controls the environment (man made & nature made capital are different) Buddhism- man coexists with the environment (man made & nature made are different)
How would Buddhist economics have handled the Greek economic crisis differently? (3)
Keynesian Economics - restructure debt burdens to managable levels - use government spending to restore full employment - reduce greed/corruption
What is the WWS "roadmap" from Stanford University?
Water, Wind, Sunlight: shows how 139 countries can achieve 80-85% conversation by 2030 and 100% by 2050
How does Buddhist economics change "status goods"?
all families have access to basics and don't yearn for status *buying status is wasteful and doesn't improve the economy
What are the worst things to eat relative to climate change?
animal products, mainly meat/fish/poultry
How much wealth is owned by the richest eighty people?
as much as the bottom 50% of the global population
How would Buddhist economics address the treatment of workers who make good sold in the U.S.?
ask that workers are relieved from their suffering and demand that stores only carry humanely produced goods -no child labor -living wages -reduce CO2 emissions
Why is a carbon tax so important?
ensures that pollution and environmental deregulation are no longer 'free goods'
What approaches does Brown advocate for consumption?
experiences: go outside and admire nature, talk to neighbors/friends/family
What does it mean to value "capabilities"?
extent to which people can achieve the life they value; support the development of relationships, talents and full potential
Give an example of a recent improvement in the lives of the extremely poor.
extreme poverty went from 2 million in 1990 to 900 million in 2012
For what 'middle way' would Buddhist economists aim?
finding the right path to development between materialists heedlessness and traditionalist immobility
Why does free market economics tolerate "intolerable injustice"?
free markets assert that competitive markets make the best outcome, even if people are in slave-like working conditions
Regarding the environment, who has no voice in free market economics?
future generations, because environmental degradations is acceptable if someone is benefitting from it
What is her criticism of Pope Francis?
he claims population growth isn't an issue, but Buddhists see issues with overpopulation and overconsumption
What is the difference between hedonic happiness and eudaimonic happiness? How is this illustrated by attitudes towards pain?
hedonic- one's subjective judgement of their own present; they want to avoid pan eudaimonic- people develop full potential and live in service to their community; they accept pain and move on
Explain: Atkins proposes that inequality can be reduced by wages, union laws, taxes on income and inheritance, employment, and a capital endowment.
increase minimum wages, increase in union bargaining power, increase in income/inheritance taxes, guaranteed gov employment for those who can't find jobs, and capital endowment for every adult
How would Brown calibrate a carbon tax to discourage use of fossil fuels and to hold the price of oil and gasoline steady?
increase price of fossil fuels with carbon tax moving inversely with price of oil and gas
What causes an improvement of national quality of life indicators?
increased income to the point where people can live comfortably and fulfill their potential
In free market economics, what happens to desire?
it creates desires to fulfill them, and people get caught in a cycle
Explain: GDP fails to measure quality of life, sustainability, and shared prosperity:
it ignores all activity outside the market place
Why is an emphasis on leisure over work a "misunderstanding of a truth of human existence?"
it indicates misunderstanding that goods/economics are more important than people, because work is all about community and improving one's life
What may be wrong with the 2 degrees centigrade target for global warming?
it might be too difficult for countries to achieve
How do the free market and Buddhist models measure "prosperity"?
Free Market = average income per person and national output Buddhist = quality of life for all people and nature
How much could climate change decrease the value of global financial assets by the end of the century?
$2.5 trillion
What is the estimate for how much investors will lose in assets by the end of the century because of climate change?
$4 trillion asset loss
How much have the wars in Iraq and Afghanistan cost?
$4-6 trillion
Factoring in environmental damage, health costs, etc., what is the estimated subsidy that governments presently give for the use of fossil fuels?
$5.3 trillion, 6.5% of 2015's global economic output
How much did industrialized countries give developing countries in 2014 compared to their pledges?
$61.8 billion out of the promised $100 billion
Historically, how much of the carbon dioxide emissions are from the United States? What is the current U.S. rank per person?
-29% of total CO2, currently 2nd place at 12.2% of omissions -17 tons of CO2 per person
What can go wrong when rich countries donate to poorer ones?
-corrupt govs can misuse funds -donaters only give to their commercial interests in poor countries
What are the major industries that will be most affected by the transition from fossil fuels? (3)
-fossil fuel corporations -automobile manufacturers -industrial agriculture
In Buddhist measures of economic performance, how are the following treated (6): (Economic performance = EP)
-increase consumption of basic goods adds to EP -unpaid activity outside of market place adds to EP -increase in clean energy adds to EP -improvements in energy adds to EP -crime/violence/natural disasters takes from EP -overwork/harmful activity takes from EP *growth is measured in mindful resource use
What guidelines does Brown recommend for "creating meaningful, happy lives"?
-live mindfully with love and compassion -care for others and relieve suffering -enjoy and rejuvenate the Earth
What three measures does Brown recommend to bring about "living wages and a balanced life"? (3)
-reduce income of CEOs/executives -increase wages so everyone makes a living -reduce working hours of all workers
What is a Gen 4 nuclear plant? (3)
-reuses uranium from Gen 3 -doesn't create nuclear waste -proliferation resistant
What effect on GDP has Germany experienced by its transition to clean energy?
1% annual increase
What types of geoengineering are being studied?
1- CO2 removal 2- solar radiation movement
What does Brown believe are the three main forces preventing us from changing?
1- busyness 2- denial 3- ignorance
Explain: among income redistribution ideas are (1) a guaranteed income; (2) a capital endowment; (3) employee ownership.
1- provides safety net for all 2- people can invest in their education or other future aspects 3- workers get some of company's income from capital
What are the three interdependencies of Buddhist economics?
1- use resources to enhance quality of life for ourselves and others 2- integrate caring for nature into all activities 3- reduce suffering/practice compassion locally and globally
Explain: inequality has increased because of trade, taxes, unions, the finance industry, and the consolidation of companies. (5)
1- weakening of unions 2- proliferation of World Trade Agreementa 3- deregulation of finance industry 4- increase market power of consolidated companies 5-decrease of income/inheritance tax
How much of food that is produced is never consumed?
1/3rd, 50 billion pounds of food waste per week
What is the temperature associated with peak economic activity? How much of a decline in economic activity might be predicted with higher temperatures?
13°C/55°F; average production will decrease by 23%
How did U.S. spending on basics vs. variety change from 1918 to 1988? Why did people not feel richer?
1918- 93% basic, 2% luxury 1988- 55% basic, 23% variety, 22% luxury inequality, trying to emulate the highest class
What does the "Two Arrows Sutra" say about pain?
1st arrow: hit and causes physical pain... if one laments over the pain, then 2nd arrow: mental pain
How would the lesson of "Two Arrows" apply to a national economy?
1st arrow: profit motivation, harming people and nature 2nd arrow: people who over work to over consume in attempt to be happy
What was the "ecological footprint" of the world's human population in 2010? What would it be if the developing countries had a lifestyle similar to the developed world?
2010- 1.5 Earths if the developed world caught up: 4 Earths
How many of the world's largest aquifers have dropped below their sustainability tipping points?
21 out of the 37
How much more, on average, do Americans work than Germans?
418 hours/12 weeks
What is the Gross National Happiness Index, and who uses it? (9)
Bhutan! it's a summation of: -good mental health -use of time -community vitality -cultural diversity -ecological resilience -standard of living -health -education -good governence
How do Buddhist economics and free market economics differ regarding human nature?
Buddhists = humans are generous/altruistic and discontent from desiring more Free Market = humans are self-centered and satisfaction comes from consuming more
What is the evidence that inequality does not actually provide incentives?
CEOs with lower pay run better performing companies
What are the principle greenhouse gases and the principle causes?
CO2- 76% from burning renewables, deforestation Methane- 16% from agriculture, landfills, natural gas Nitrous Oxide- 6% from fertilizer use and burning biogas
What is Bhutan's GNH index?
Gross National Happiness, replaces GDP to measure national well being
How would Buddhist and materialistic economists differ on natural resources?
Moralist = cheapest is best, so use non-renewables Buddhist = use non-renewables only if they're indispensable and are taken care of
What leaders in the U.S. and U.K. were responsible for changes in taxation that resulted in much greater inequality?
Reagan & Thatcher
What is the "Third Pole" and how are temperatures rising there relative to the global average?
Tibetan Plateau and Himalayan glaciers: 3 times faster
To economists, what is meant by "basics," "variety," and "luxury"?
basics- $ for shelter variety- $ for making the shelter comfortable luxury- $ for a larger shelter in a nice place with privacy
How much has global warming already changed the incidence of extreme heat days and extreme precipitation days?
caused 75% of extreme heat caused 18% of precipitation
Why is natural gas not really a "clean" fossil fuel?
causes a lot of methane to go into the atmosphere
Why is work a "blessing" and its absence an impoverishment?
character is formed by work and work nourishes/enlivens us; without this opportunity, a man's life is more empty
What is the Genuine Progress Indicator?
combines 26 indicators to measure economic/social/environmental well-being
What do Baylis and Gintis argue is the basis of human society?
cooperation (aids to survival and growth)
What are the assumptions of the free market model regarding decision-making, prices, fairness?
decision-making: people are rational with perfect info prices = markets don't set price, so supply equals demand fairness = because supply equals demand, everyone is treated fairly
What does Jeffrey Sachs identify as the underlying cause of the 2008 economic crisis?
decline in civic virtue
If deforestation were a country, where would it rank in greenhouse gas emissions? Where would food waste rank?
deforestation- rank above the EU food waste- rank 3rd behind the US and China
Why, in a global economy, is it often no longer true that international trade benefits both parties?
developing countries face markets already dominated by the developed world (because technology is so advanced)
Regarding the "four fronts" on which action is needed, what is the target for global warming; what is the need for human communities; what should be done about consumption; what should be done on population growth?
keep global warming below 2c, increasing community resilience to natural disasters, decreasing consumption, limit population growth
What can we learn about the correlation of life satisfaction and income from figure 5?
life satisfaction if the same after a liveable income is achieved
Why does Ferris Jabr regard NASA's working definition of life: "a self-sustaining system capable of Darwinian evolution" not to be sufficient?
living things like parasites (intestinal worms, fungus, ect.) are not self-sustaining either
What is the Cantril Ladder?
measure of hedonic happiness (pleasure without pain and life satisfaction)
How would Buddhist economics address extreme poverty? Health care?
minimize/reduce suffering = supporting health care and reducing extreme poverty
What is Brown's take on the equation of choice and freedom?
more choice = higher expectation = more disappointment
How are happiness and quality of life related to income inequality?
more inequality = less happiness due to increased mortality, lower life expectancy, increased child poverty, increased incarceration, decreased health
How do American car choices show that they are unwilling to pay for advances in energy efficiency?
more than 50% of cars sold were trucks/SUVs and only 5.6% were electric cars/hybrids
How broad must one's concerns be in Buddhist economics?
national & global; interdependence to maximize interest of all
What is "black carbon"?
not a GHG; comes from burning fossils and waste, industrial production, or diesel gas (consists of fine particles)
What is the relationship between happiness and income?
once basic needs are met, even if the economy grows, happiness remains the same overtime
How do high-sustainability companies fare compared to low-sustainability companies in the stock market?
outperform them
What does Ferris Jabr mean by saying, "Life is a concept, not a reality"?
outside of the human mind, a tree is not a 'tree', but one of many billions of plants humans call trees all observable matter is simply an arrangement of atoms/particles & there is no threshold to what is and isn't life
Why are simplicity and non-violence closely related?
people satisfy needs with less resources and aren't fighting over them *self sufficient communities are less likely to get into fights
How does Buddhist economics differ from many other economists regarding the "discount rate" to be applied to expected future wealth?
place a higher value on ecosystems and use a low discount rate
What is the summary of "carbon inequality"?
poorest 50% of world population make 10% of carbon while richest 10% of world population make 50% of carbon
How does the Happy Planet Index improve on the Cantril Ladder? Where does the U.S. rank on the HPI?
provides a single measure of a nation's happiness/health/sustainability/inequality without including income US got 20.7 (rank of 108 out of 140)
What changes in work does Buddhist economics advocate?
reduce working hours, give paid leave and early enough retirement to enjoy it so there are enough jobs for everyone
Why did GDP show an increase after the disaster of Hurricane Katrina in New Orleans?
relief efforts and insurance payments were added
What do right action, livelihood and effort mean in economic terms?
right action- mindfulness/compassion/no harm livelihood- earn a living without harming others effort- develop good qualities and get rid of bad ones means one values people and places over things
Why should one find or form a sangha?
share our ups and downs with can can share out deepest fear and longings
Why would Buddhist economics aim at full employment?
so everyone has an 'outside job' (women must stay at home raising kids) not for maximum production
Why is the usual measure for "standard of living" nonsensical to a Buddhist economist (ex: clothing)?
standard of living: maximum well being with minimum satisfaction -why waste artistic energy producing things (clothes) that don't matter or spiritually benefit anyone?
What is a "cap and dividend" plan?
taxes a broad range of income sources and distributes revenue to everyone equally
What is a "value-added tax"? [you may need to find this information online] How would it discourage over-consumption?
taxes on the amount by which the value of an article increased at each stage of production/distribution -make local/environmental things cheaper in comparison
Why does the record of solar modules show that is it realistic to think that making fossil fuels more expensive would unleash innovation?
their cost decreased as more were implented
What is wrong with relying on climate change models that predict an increase in average global temperatures?
there's a strong likelihood of experiencing temps above any
Why would Buddhist and materialist economists see transportation differently?
transportation = imports/exports, which is bad in Buddhism because it shows dissatisfaction and more consumption
How does compassion set up a "positive feedback loop"?
when you do something kind, it makes you happier and more likely to do something kind again
How did "Harry's" experience with mindfulness lead to less competitiveness?
when you do something kind, it makes you happier and more likely to do something kind agan
How does Buddhist economics differ from materilaistic economics regarding work?
working is a sacrifice of leisure/comfort and wages are payment for the sacrifice, and the end goal is to stop working/lighten the load
What is meant by a "zero sum" approach? How does Buddhist economics differ?
zero-sum: additional resources to one person means less resources for another -well being increases when the rich give the poor their resources; micro (individual) and macro (national) dissolve to become one economy benefitting all