In the traditional economic paradigm, growth has been the central pillar upon which models, policies, and societal expectations have been built. From Keynesian frameworks to neoclassical theories, economic models have largely been constructed around the assumption that perpetual growth is both desirable and achievable.

However, as we move into the post-growth era—a period characterized by the recognition that infinite growth on a finite planet is unsustainable—these traditional economic models are increasingly losing their relevance. This shift necessitates a transition to narrative models, which better capture the complexities and ethical considerations of a world where growth is no longer the primary objective.

The Obsolescence of Traditional Economic Models

Finite Resources and Environmental Limits: Traditional economic models often fail to account for the environmental limits of growth. These models typically assume that technological innovation and market mechanisms can indefinitely offset the depletion of natural resources. However, we now understand that ecosystems have finite capacities to absorb waste and regenerate resources. Ignoring these limits has led to environmental degradation, climate change, and biodiversity loss, which threaten the very foundations of human well-being. Economic models prioritising growth overlook the ecological realities increasingly shaping our economic and social landscapes.

Inequality and Social Well-being: Economic growth has not led to widespread prosperity. In many cases, it has exacerbated inequality, concentrating wealth and power in the hands of a few while leaving large segments of the population behind. Traditional models measure success through metrics like GDP, which fails to capture the well-being of individuals or the equitable distribution of resources. As we recognize the limits of growth, it becomes clear that we need new models prioritising human and ecological well-being over expanding economic output.

The Myth of Perpetual Growth: The assumption of perpetual growth is fundamentally flawed. The notion that economies can grow indefinitely ignores the constraints imposed by natural resources and environmental degradation. As economies mature, growth rates naturally decline, a phenomenon that traditional models struggle to explain or incorporate. Pursuing growth at all costs leads to economic instability, environmental destruction, and social unrest. In the post-growth era, we must abandon the myth of perpetual growth and seek alternative ways to measure progress.

The Case for Narrative Models

Holistic Understanding: Narrative models provide a holistic understanding of the economy by integrating social, ecological, and ethical dimensions into economic analysis. Unlike traditional models, which often rely on abstract equations and assumptions, narrative models use stories, case studies, and qualitative data to explore the complex interplay between human behaviour, societal values, and environmental realities. This approach allows for a more nuanced understanding of economic phenomena, especially in a world where the traditional growth drivers no longer apply.

Flexibility and Adaptability: The post-growth era is characterized by uncertainty and change. Narrative models are inherently flexible and adaptable, making them better suited to capture the dynamic nature of economies in this new context. They can evolve as new information and perspectives emerge, allowing for a more responsive approach to economic planning and policy-making. This adaptability is crucial in a world where new challenges, such as climate change, technological disruption, and demographic shifts, are replacing old certainties.

Emphasizing Values and Ethics: Narrative models emphasise values and ethics more, recognizing that economic decisions are not just technical choices but moral ones. In the post-growth era, we must grapple with fairness, justice, and sustainability questions in ways that traditional economic models are ill-equipped to handle. By focusing on narratives, we can explore different visions of the future, considering not just what is economically efficient but what is socially and environmentally just.

Engaging Diverse Perspectives: Traditional economic models are often technocratic and exclusionary, accessible only to those with specialized knowledge. Narrative models, by contrast, are more inclusive and democratic, inviting a wider range of voices into the conversation. Drawing on diverse perspectives and experiences, narrative models can help build a more inclusive and resilient economic system that reflects the values and aspirations of all members of society, not just the elite.

As we transition into the post-growth era, the limitations of traditional economic models are becoming increasingly apparent. These models, rooted in the assumption of perpetual growth, are ill-equipped to address the ecological, social, and ethical challenges of our time. Narrative models offer a compelling alternative, providing a more holistic, flexible, and inclusive framework for understanding and guiding economic activity in a world where growth is no longer the primary goal. By embracing narrative models, we can begin to build an economy that prioritizes well-being, sustainability, and justice over the relentless pursuit of growth.

This blog was originally posted on Orcop-Prospecta.