Resource Depletion and Green Economics

Hello friends I am back with a newer post about the depletion of natural resources and introduction of Green Economics. This is first of the serial of posts that I am going to share with you. Our world’s natural resources are depleting due to excessive extraction to feed the needs of the capitalistic giant, and the rate of extraction of resources is increasing day by day and if we will continue to do so sooner the scarcity of resources will become so swear that we will have to pay it at the cost of existence of our future generations. This excessive extraction of natural resources is also disturbing our ecological system. Due to massive carbon emissions on one side the ambient quality of eco-sys is decreased but it has highly reduced its assimilative capacity. So we have to do inter-temporal decisions by trading off between our needs and future generations. So the concept of Green Economics is introduced.

The concept of Green Economics don’t only relates to the survival of environment by drowning the economy. It tells us how we should take our economy along with the eco-system. But it requires a great effort on the part of all of us because the process of transformation of a system always requires the mental and physical efforts of the agents of that system. Green Economics talks about the introduction of positive alternatives in the all areas and each sector of the economy. In economics the concepts of social cost and social benefits are already familiar, for example to reduce the emissions the governments can put emission taxes on the producers as social cost so that the damage done by emissions could be recovered and due to these taxes the producers will also reduce the emissions. On the other hand to some extent reduced emissions also mean reduced resource depletion. This can happen in many ways but I will discuss two of them.

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Fiscal Measures to Control Recession

In one of my earlier posts “Is it the call to another Great Depression?” I mentioned how the easy monetary measures of Federal Reserve lead the US economy toward the Deflationary situation and suggested that the Black Man’s government should adopt easy fiscal measure to overcome this alarming situation. One of my friends posted me a comment on that article. In fact in response to that comment I was forced to write this new post.

Let’s take the things one by one. We know that US economy is facing a very high unemployment rate (up to 9.5%). Professor Arthur Okun conducted an empirical study and concluded that an increase in unemployment rate by 1% reduces the Real GDP of by 2%; his observation is given the name of Okun’s Law. So the government has to control unemployment rate by deficit spending and many economists recommend deficit spending to end recession, especially a severe one.

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