Ten
Point Policy Summary for Steady-State Economy: Daly
1.
Cap-auction-trade systems for basic resources. Cap limits to biophysical scale
according to source or sink constraint, whichever is more stringent. Auction
captures scarcity rents for equitable redistribution. Trade allows efficient
allocation to highest uses.
2.
Ecological tax reform—shift tax base from value added (labor and capital)
and on to Òthat to which value is addedÓ, namely the entropic throughput of
resources extracted from nature (depletion), through the economy, and back to
nature (pollution). Internalizes external costs as well as raises revenue more
equitably. Prices the scarce but previously unpriced contribution of nature.
3.
Limit the range of inequality in income distribution—a minimum income and
a maximum income. Without aggregate growth poverty reduction requires
redistribution. Complete equality is unfair; unlimited inequality is unfair.
Seek fair limits to inequality.
4.
Free up the length of the working day, week, and year—allow greater
option for leisure or personal work. Full-time external employment for all is
hard to provide without growth.
5.
Re-regulate international commerce—move away from free trade, free
capital mobility and globalization, adopt compensating tariffs to protect
efficient national policies of cost internalization from standards-lowering
competition from other countries.
6.
Downgrade the IMF-WB-WTO to something like KeynesÕ plan for a multilateral
payments clearing union, charging penalty rates on surplus as well as deficit
balances—seek balance on current account, avoid large capital transfers
and foreign debts.
7.
Move to 100% reserve requirements instead of fractional reserve banking. Put
control of money supply and seigniorage in hands of the government rather than
private banks.
8.
Enclose the remaining commons of rival natural capital in public trusts, and
price it, while freeing from private enclosure and prices the non rival
commonwealth of knowledge and information. Stop treating the scarce as if it
were non scarce, and the non scarce as if it were scarce.
9.
Stabilize population. Work toward a balance in which births plus immigrants
equals deaths plus out-migrants.
10.
Reform national accounts—separate GDP into a cost account and a benefits account.
Compare them at the margin, stop growing when marginal costs equal marginal
benefits. Never add the two accounts.