ABSTRACT
The discussion in Chapter 2 clearly supports our basic point that the Earth’s biophysical systems are approaching their tipping points with regard to their ability to support the human species. At issue is humankind’s perception that the planet’s carrying capacity is sufficient to absorb the effects of an oversized human footprint forever. This perception emanates from the underlying assumptions of economic theory. Noted scholars have warned for decades that there are major discrepancies among the assumptions of economic theory, the preservation of the ecosystem, the happiness of the planet’s human inhabitants, the dynamics of the global marketplace, and the preservation of civilization. E.F. Schumacher (1973, 1979) said that assuming unlimited economic growth is possible in a finite world is a dangerous illusion. Management pioneer Peter Drucker (1980, 160) agreed, saying, “Reality and the available economic theories have been moving further and further apart.” Economist Herman Daly (1977, 89), a founder of ecological economics, said that applying the assumptions of modern economics is like “seeking the optimal arrangement of deck chairs on the Titanic,” and Gus Speth (2008) said that the environmental crises of today can only be solved if current capitalism can be fundamentally transformed.
