At Project Syndicate, Jean Pisani-Ferry, director of Bruegel, the international economics think tank, has some reservations over current indiscriminate austerity policies in Europe.
The Achilles heal of all these traditional economists reading of the current debt crisis is that they all still believe this crisis is temporary and we will return to growth in the not too distant future. What if this crisis is more fundamental and we have really entered the post-growth society in Western economies? Read Richard Heinberg’s article “Life after the end of economic growth” in the Guardian.
That said, the challenges for the post-growth movement is no less daunting. Not only is economic growth still the mother of all poverty-reduction in emerging economies but the austerity implications of living above our means (financially as well as ecologically) need to be framed in a new credible prosperity and distribution narrative if post-growth policies are ever to convince traditional policymakers and citizens.