Short articles and messages in the media reported that the more than seven billion consumers on this planet had consumed on July 29 as many natural resources as the entire planet reproduced in the complete year. After less than a week the media did not give more information or comments about the EO day.
The cause that the EO day happened and happens every year earlier in the year, except, in the year 2020, when it happened on August 22 because of the corona virus, is the macro-economic practise of maintaining growth in the development of the free market economy.
Growth implies to produce more. However, production figures are incorporated in the growth statistics of countries only if that which had been produced was also sold. Otherwise it is taken back by the supplier and can become waste.
What is sold is bought by someone, either a final consumer or an entrepreneur who makes products for the final consumer or a producer who supplies the entrepreneur. The final consumer is the one who digests goods and services in his personal life. All of them eventually consume everything that is sold, because everything that is produced is made in a process to satisfy the demand of the final consumer.
So, in order to keep the development of the free market economy growing, more than seven billion consumers have to continue consuming more of the limited resources of the planet.
Every intelligent person should know that it is not possible to continue consuming more of limited resources because they will become depleted.
To maintain growth in development is not an option any longer in the management of the economy, if mankind wants to survive.
In the free market economy the limit of freedom, inherent in this economy, has not been respected. The limit of freedom is the obligation to choose. Until recently, the choice to develop the economy with the sense of keeping nature in perfect state could not be made, because of a lack of knowledge about what determines the sense of development. That is why the development of the free market economy is senseless and destroys nature with everything living in it.
Today, it is possible to keep the economy going while maintaining the environment impeccable because three new concepts have been founded in the science of economy. They are explained on the three concepts page.
The choice to apply these concepts and thus to keep nature sound has therefore to be made in order to enjoy freedom.
Making this choice creates an ethical market economy.
Hoeilaart, September 26, 2020