A recent study from Harvard and the University of California shows how an individuals happiness increases the happiness of those around him/her in up to three degrees of separation. If you haven't heard about this, then you can read about it here or listen to a 60-second science podcast. Basically, this study provides a scientific founding for something that I've always known: When I smile, the people around me are more likely to smile and vice-versa!
The contagiousness of happiness is an important point to consider, because it gives credence to the idea that we benefit selfishly by giving to others. It is in our own self-interest to ensure the happiness of those around us, be they family, friends, or unknown neighbours. No man or woman is an island, and I am clearly impacted by the actions and attitudes of others. In the same way, I need to be aware of what emotions I am projecting and realize that a positive vibe will likely result in happier people around me!
Although obviously relevant for individuals' decision-making, this study is even more important for a macroeconomic discussion of governmental objectives. Conventionally, governments aim for economic growth in the form of higher GDP. This priority is clear from the importance of money in our lives, and the place of prominence that Finance/Commerce Departments and Ministries have in any country's governmental power hierarchy. Unlike happiness, money is not contagious. In fact, the flows of money show that it tends to concentrate in the hands of the few, as if there were a 'trickle-up' effect (see here and here for proof). Therefore, our government's efforts to increase monetary wealth have primarily resulted in the rich getting richer. If governments really want to 'raise all boats' to prosperity, then it should focus on something positive that will self-perpetuate. Several regions (most noticeably the countries of Thailand and Bhutan) have embraced happiness as the ultimate end social well-being. They employ measures like Happy Planet Index, Gross National Happiness, and Genuine Progress Indicator to provide guidance and quantify success.
Accepting happiness as a economic strategy recognizes that having money alone does not constitute a high quality of life. Instead, societies must strike a balance between the connected spheres of profit, people and planet. By measuring and encouraging the growth of human capital, social capital and natural capital in conjunction with financial and manufactured capital, we get a more robust form of economic development that is more sustainable.
Don't worry, be happy!
Monday, December 8, 2008
Monday, September 22, 2008
Hedge Fund Hustle
Hedge funds getting trimmed,
Like 3-point shooters getting rimmed.
Aiming for the net,
Looks more like a prayer than a bet.
Projecting expectations for a loss,
Suits playing a game of ring-toss.
WHO’S A WINNER??
Not you sucker, your prospects for growth are looking dimmer.
Merril getting lynched, Goldman getting sacked,
Rich old white men getting hacked worse than Shaq at the track
Betting on horses ridden by CEOs,
Selling their skills like so many ho’s.
Where is the finish line? Nobody knows.
The market just grows and grows and grows.
At least it’s supposed to,
Like at a wedding having the sky blue.
But when it rains, it pours, and now the S&P is in the gutter,
Forcing the money manager to put down his putter.
‘Cause he ain’t shooting par, isn’t smoking a fat cigar.
Instead, he’s answering questions,
Clients sputtering and making suggestions,
That someone’s head had better role,
Before we’re out collecting the dole.
Saying ‘something had better change’
And ‘these hedge funds are rather deranged’.
A return to old-school values,
Where clients and managers choose
Companies that win and don’t lose
In the long-term game.
Not in it for the fame,
Just trying to build a name for respectability in perpetuity.
The best showcase for my ability to generate profitability is a fund with one purpose: Sustainability.
Like 3-point shooters getting rimmed.
Aiming for the net,
Looks more like a prayer than a bet.
Projecting expectations for a loss,
Suits playing a game of ring-toss.
WHO’S A WINNER??
Not you sucker, your prospects for growth are looking dimmer.
Merril getting lynched, Goldman getting sacked,
Rich old white men getting hacked worse than Shaq at the track
Betting on horses ridden by CEOs,
Selling their skills like so many ho’s.
Where is the finish line? Nobody knows.
The market just grows and grows and grows.
At least it’s supposed to,
Like at a wedding having the sky blue.
But when it rains, it pours, and now the S&P is in the gutter,
Forcing the money manager to put down his putter.
‘Cause he ain’t shooting par, isn’t smoking a fat cigar.
Instead, he’s answering questions,
Clients sputtering and making suggestions,
That someone’s head had better role,
Before we’re out collecting the dole.
Saying ‘something had better change’
And ‘these hedge funds are rather deranged’.
A return to old-school values,
Where clients and managers choose
Companies that win and don’t lose
In the long-term game.
Not in it for the fame,
Just trying to build a name for respectability in perpetuity.
The best showcase for my ability to generate profitability is a fund with one purpose: Sustainability.
Sunday, April 20, 2008
Attack of the Killer Swan
The strangest event occurred yesterday. Playing Bocce in ideal conditions on a beach out on Sälto, my friends and I were enjoying the first sprouting of Spring. With my toes in the sand, and the competitive 'eye of the tiger' hidden behind shades, I was dropping precision bombs that made my opponents shudder in dismay. The game stopped in a salutary admiration of graceful beauty as a Swan floated by so near to us that she was using her strong legs to push off the shore. We stood in disbelief at the presence of something divinely delivered to us, a peep into the complex beauties of nature's diversity. I remarked at the way she was using her legs to propel herself forward, and pronounced that I had never seen a Swan walk on land before. As I said the words, the Swan came ashore and started to walk towards us. Stunned at the sudden onslaught, Ben, Nick, and I stood silently as Freek wisely got some distance. The Swan stared us straight in the face and delivered a steadfast "HIIIIISSSSSSSSS" that sent the three of us scrambling barefoot up the beach. I surmised that this was an angry mother, who had thought our nonchalant tossing of the Bocce an affront to playing with her eggs. Nick grabbed the Bocce and the set of silver balls from the course, but left the black ones. Since we were watching the scene so intently, I think the Swan took it as a challenge. Every few minutes, the Swan would begin re-approaching us. Freek was adamant that we keep our distance, insisting that a Swan could break your arm with its wing. Hurriedly, we retreated even further, but still in a place where we could watch this real-life nature documentary. There was a Swedish couple who happened to be walking past when the show started, and they were enjoying the program too. The Swan inspected the black Bocce balls, perhaps even tried to eat one, and then triumphantly departed. We waited until it left the scene before gathering up our sweaters and socks and having a nice, long chuckle about the situation. Still, I think we all developed a little more respect for Swans. Dismissing them as weak and overly elegant, I failed to see the purposefulness of their bendy necks, but now I've watched them find food on the sea floor without resorting to a plunge. I feel confident now in saying that my life will not be complete until I have a large bio-mimicked Swan to sail the seas and soar the skies. Plus, now I know it has an inherent defense mechanism to boot!
Thursday, February 7, 2008
Jesus Camp, etc.
I just finished watching the documentary "Jesus Camp" and it left me feeling disturbed, disconsolate, and distrustful of extreme religiousness. Ironically, it also made me feel extremely jealous.
I'm amazed at how effectively evangelists have dominated the American political scene. With a highly-organized 10% of the population, they have elected (and re-elected) a sympathetic, although idiotic, president. Moreover, they have saturated general discourse and mass media with their ideologies. As Jesus Camp shows, they are indoctrinating the next generation of 'God's Army' with unshakable values, beliefs, and visions of the future. Too bad this particular vision includes the second coming of Christ and the end of civilization as we know it....
The Globalsalvation movement should adopt some of these successful strategies to launch our own invasion of consciousness. Imagine scores of children playing in forests and discovering nature at eco-camps! We can teach them that Gaia loves them and has given them life. We'll lecture them on the evils of Exxon and tell ghost stories about the haunted SUV that went around killing polar bears and flooding the Netherlands! We'll create our own squadron of 'Earth's Peacekeepers' to go around chanting "YES, AND!" at protests. We'll guilt children that they cannot be hypocrites, breathing air and drinking water, but failing to properly sort their garbage (OH, the horror! REPENT!) They will develop a reverence for the extraordinary coincidence of the evolution of consciousness, and will understand their role in ensuring a long tenure for humanity on this planet. Core values of Diversity, Interdependence, and Self-Sufficiency will be drilled into their minds using popular icons, funnels, and fancy fonts. We will mold them into eco-fascists that will CONQUER THE WORLD (only to implement fair and sustainable practices).
Okay, so maybe I've taken this joke a bit far, but it's still a funny thought. How come religious fanatics who honestly believe that a book is literally "the word of God" get more traction in the public spotlight than local heroes that endlessly work to improve the quality of social and environmental systems?? If people are so hungry for faith and belief, why do they look for it in something external, eternal, and unknowable while stomping all over the most beautiful, magical, gracious creation ever known? I guess the devil you know is better than the planet you live on...
I'm amazed at how effectively evangelists have dominated the American political scene. With a highly-organized 10% of the population, they have elected (and re-elected) a sympathetic, although idiotic, president. Moreover, they have saturated general discourse and mass media with their ideologies. As Jesus Camp shows, they are indoctrinating the next generation of 'God's Army' with unshakable values, beliefs, and visions of the future. Too bad this particular vision includes the second coming of Christ and the end of civilization as we know it....
The Globalsalvation movement should adopt some of these successful strategies to launch our own invasion of consciousness. Imagine scores of children playing in forests and discovering nature at eco-camps! We can teach them that Gaia loves them and has given them life. We'll lecture them on the evils of Exxon and tell ghost stories about the haunted SUV that went around killing polar bears and flooding the Netherlands! We'll create our own squadron of 'Earth's Peacekeepers' to go around chanting "YES, AND!" at protests. We'll guilt children that they cannot be hypocrites, breathing air and drinking water, but failing to properly sort their garbage (OH, the horror! REPENT!) They will develop a reverence for the extraordinary coincidence of the evolution of consciousness, and will understand their role in ensuring a long tenure for humanity on this planet. Core values of Diversity, Interdependence, and Self-Sufficiency will be drilled into their minds using popular icons, funnels, and fancy fonts. We will mold them into eco-fascists that will CONQUER THE WORLD (only to implement fair and sustainable practices).
Okay, so maybe I've taken this joke a bit far, but it's still a funny thought. How come religious fanatics who honestly believe that a book is literally "the word of God" get more traction in the public spotlight than local heroes that endlessly work to improve the quality of social and environmental systems?? If people are so hungry for faith and belief, why do they look for it in something external, eternal, and unknowable while stomping all over the most beautiful, magical, gracious creation ever known? I guess the devil you know is better than the planet you live on...
Sunday, January 27, 2008
Global Responsibility
According to the 2004 United Nations Millennium Ecosystem Assessment, over the past 50 years, humans have changed ecosystems more rapidly and extensively than in any comparable period of time in human history. Moreover, the changes that have been made to ecosystems have contributed to substantial net gains in human well-being and economic development, but these gains have been achieved at growing costs in the form of the degradation of many ecosystem services, increased risks of nonlinear changes, and the exacerbation of poverty for some groups of people.
There is a growing disconnection between human socio-economic activity and the natural systems around us. Many leaders still espouse the notion that environmental measures will hurt the economy, and this mentality serves to reinforce ‘business as usual’ tendencies. Responsibility for the health of natural ecosystems has been lost to the pursuit of unending economic growth. Unfortunately, this trend cannot continue indefinitely, as infinite economic growth within limited natural capacity is impossible. Current generations may enjoy the thrill of irresponsible activity, flying in the face of imminent chaos and danger, but future generations will have to pay the price. Responsibility for the impacts of human-generated waste and destruction is continually being passed to someone else. In this game of hot potato that we are playing with ecosystem services, bio-diversity and global health, future generations will inevitably be left clutching the remains of a planet in peril.
There is a growing disconnection between human socio-economic activity and the natural systems around us. Many leaders still espouse the notion that environmental measures will hurt the economy, and this mentality serves to reinforce ‘business as usual’ tendencies. Responsibility for the health of natural ecosystems has been lost to the pursuit of unending economic growth. Unfortunately, this trend cannot continue indefinitely, as infinite economic growth within limited natural capacity is impossible. Current generations may enjoy the thrill of irresponsible activity, flying in the face of imminent chaos and danger, but future generations will have to pay the price. Responsibility for the impacts of human-generated waste and destruction is continually being passed to someone else. In this game of hot potato that we are playing with ecosystem services, bio-diversity and global health, future generations will inevitably be left clutching the remains of a planet in peril.
Monday, January 14, 2008
Eco-nomics and Carbon Taxes
I wrote a small piece for the Global Assembly online dialogue, and wanted to share it!
So many ideas, where to begin?? The field of sustainable economics (or Eco-nomics, as I prefer) is so untouched that I see possibilities everywhere.
Today I'd like to describe my version of a Carbon Tax. The words have been heavily used lately in Canada and they sparked an idea. Instead of a downstream carbon emissions tax, why not try an upstream carbon extraction tax??
Understanding the carbon cycle, I've come to realize that normal carbon emmissions are not the problem (you are emitting CO2 right now as you read this, as I am while I write). We are part of the cycle, therefore our emissions are to be expected. The problem is that carbon is being extracted from outside the biophere's system (underground) and is being added to the atmospheric at an accelerating pace, flooding it. The problem isn't CO2 emissions (like you & me, biofules, cows decomposing, etc) the problem is CO2 extraction.
Therefore, I feel that the proper market-based tool for this problem is an extraction tax on carbon. Oil & mining companies would have to pay for the carbon beforehand, assuming that it will eventually be burned. Of course, customers would end up footing the bill (inevitably) with higher prices, but it will make substitutes of petroleum-based products much more competitive!
Moreover, you wouldn't need complicated emissions-reporting evaluations and audits. Every country knows how many fossil fuel resources get extracted every year, down to the barrel. Revenues could be shifted to subsidies for sustainable R&D or to help out those who need it most to find sustainable alternatives.
That's my idea, and I'm sticking to it!
So many ideas, where to begin?? The field of sustainable economics (or Eco-nomics, as I prefer) is so untouched that I see possibilities everywhere.
Today I'd like to describe my version of a Carbon Tax. The words have been heavily used lately in Canada and they sparked an idea. Instead of a downstream carbon emissions tax, why not try an upstream carbon extraction tax??
Understanding the carbon cycle, I've come to realize that normal carbon emmissions are not the problem (you are emitting CO2 right now as you read this, as I am while I write). We are part of the cycle, therefore our emissions are to be expected. The problem is that carbon is being extracted from outside the biophere's system (underground) and is being added to the atmospheric at an accelerating pace, flooding it. The problem isn't CO2 emissions (like you & me, biofules, cows decomposing, etc) the problem is CO2 extraction.
Therefore, I feel that the proper market-based tool for this problem is an extraction tax on carbon. Oil & mining companies would have to pay for the carbon beforehand, assuming that it will eventually be burned. Of course, customers would end up footing the bill (inevitably) with higher prices, but it will make substitutes of petroleum-based products much more competitive!
Moreover, you wouldn't need complicated emissions-reporting evaluations and audits. Every country knows how many fossil fuel resources get extracted every year, down to the barrel. Revenues could be shifted to subsidies for sustainable R&D or to help out those who need it most to find sustainable alternatives.
That's my idea, and I'm sticking to it!
Monday, November 19, 2007
Brussels Hustle
Today was a big day. After a brilliant day/night in Masstricht reconnecting with powerful friends, I hopped the train to the European Parliament where I've been attending a conference called 'Beyond GDP'. Not so many new ideas, but it's sooooooo cool to hear them beying discussed in such a powerful setting. I've been dutifully rewarded with a potential job offer, a possible book deal (long live the Eco-Nomad!) and getting to ask the advice of a Nobel-winning member of the IPCC! I feel fully blessed to have these opportunities. I need a big sleep tonight because it's back to the beehive tomorrow for another day of rubbing elbows. Anyone know anything about this Carbon exchange that's being set up in London (England)?????
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