7 concepts from Herman Daly that will change your vision of economics.

1/ The ENVIRONMENTALLY EXTENDED INPUT-OUTPUT TABLE: bringing purely economic interactions, purely environmental interactions, and interactions between the economy and the environment into one comprehensive framework.

2/ The ENDS-MEANS SPECTRUM: political economy is the academic discipline that studies the use of intermediate means to produce intermediate ends.

3/ SCALE, DISTRIBUTION, ALLOCATION: a good scale is one that is sustainable, a good distribution is one that is just, and a good allocation is one that is efficient.

4/ The ECONOMIC PLIMSOLL LINE: the scale of the economy, like the cargo limit on a ship, should be determined first, and then distribution and allocation can follow.

5/ The INDEX OF SUSTAINABLE ECONOMIC WELFARE (ISEW) as an alternative indicator of prosperity to replace Gross Domestic Product (GDP).

6/ UNECONOMIC GROWTH: When growth has more costs than benefits, it becomes “uneconomic”.

7/ STEADY-STATE ECONOMY: “an economy with constant population and constant stock of capital, maintained by a low rate of throughput that is within the regenerative and assimilative capacities of the ecosystem.”

To know more about Herman Daly, here is one brilliant book written by Peter Victor:

www.routledge.com/Herman-Dalys-Economics-for-a-Full-World-His-Life-and-Ideas/Victor/p/book/9780367556...