Jared Blustein
*Originally presented at Langevin School
Adapted & Edited by Sierra Love
A given economy in any society is the result of their culture, values, education, technology, history, social organization, political structure and legal systems, as well as its geography, natural resources, and ecology. In Canada, this has resulted in our major form of economy, which is a linear capitalist economy. This form of economy has a tendency to prioritize profits, and follow a “take-make and dispose” plan. Which means that raw materials (for example aluminum alloys, copper, and cobalt) are collected and transformed into products (such as cell phones and computers), and used until they are finally discarded as waste. Value is understood and created in this economic system by producing and selling as many products as possible.
While this form works very well for the creation of profit, it also creates a lot of externalized costs. Pollution, waste, and human exploitation.
It is estimated that over 50% of food grown in Canada is wasted and according to the World Bank, we are one of the biggest polluters in the world, producing 1.3 billion tons of waste in 2017. In responding to some of these issues the Circular Economy has been presented as an alternative to the linear model.
The circular economy argues that business can continue to make money while caring for the world. It uses a concept known as biomimicry, trying to model our economy on natural, finite systems, reintroducing and using waste. The circular economy focuses on three of the four “R”s (reuse, recycle and recover). A circular economy designs out waste and pollution, keeps products and materials in use, and regenerates natural systems – the Cradle to Cradle concept.
There are four major areas in an economy, all of which the circular economy can address. Products, labour, energy and land use, and finally, money. Money currently exists as a private means for people to attain goods and services, but how would it look within a circular economy? While this is a complex issue, here are a few points to consider..
Money in our linear economy tends to concentrate with the powerful and wealthy. Commercial businesses and wealthy individuals seek to hold onto their wealth, and create more of it. One result of this is something called capital flight. They put their money in tax-free accounts overseas.
As this graph shows, Canadian corporations sent $350 billion dollars out of our country in 2018.
Moreover, our city has many big businesses and franchises that come from other countries. When you buy from them, a portion of your money leaves our city and goes to their head office. This results in more money leaving our economy, and concentrating with the wealthy. In a circular economy, complementary currencies help to address this issue of capital flight.
This is where Calgary Dollars comes in! Calgary Dollars (C$) is our local, complementary currency. C$ can only be spent and exchanged in the city of Calgary. It is a form of community economic development, not only supporting local businesses, but helping people build bonds of trust with other people in their community, providing another source of income, and assisting with the recirculation of goods (ie diverting serviceable goods from the landfill). You can learn more about C$ here: http://www.calgarydollars.ca/.
In this way, money becomes a public utility, a means for people to trade locally and build community, with money circulating in our city and never leaving.
What are some of the limits to this idea of Circular Economy?
Waste. We all produce waste, how can we engineer it out effectively? We need to consider all parts of the economy to truly create sustainable solutions to current issues (eg labour, land, money as well).
We are faced with cultural limitations. We currently have a culture of consumption, planned obsolescence, a cultural/socialized need to have/consume the latest and newest thing.. And this includes greenwashing.
Corporate and individual greed. Large profits fuel a strong desire not to change.
Finally, what about the 4th R? Reduce! Many of the current issues will not be addressed without seriously looking at our culture of consumption, which is tied to media (movies, tv, internet, social media etc.). Consumer demand drives growth, but a system focused solely on profit ignores other factors.
There appear to be a lot of issues and limitations, but this does not mean we should ever stop trying to make our world, and our city, a better place. We have many of the tools we need to work towards a Real Utopia. Embracing the tension between dreams and practice, real utopias are founded in a belief that what is possible is shaped, in part, by our vision of what we hope to achieve. While it is certainly optimistic or simplistic to say, where there is a will there's a way, it is true, without doubt, that a will often finds a way.
And so sometimes it is important to have a utopic goal, and realize that while we may not achieve it, we will at least start the movement to get there. As the well known quote affirms, “Shoot for the moon. Even if you miss you'll land among the stars.”
Real Utopia means we need to have a bold vision, one that is conceivably achievable, and keep trying, even if you fail! We have solutions, we are intelligent, we must be creative, put pressure on policy and government, and be brave enough to envision a better world, and then work to create it. You could start just by getting local, and making money.
