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Tag Archives | economics

Slow Money: Shared Risk Investment

Slow Money Founder, Author Woody Tasch Discusses Community-Based Economics, Soil as Foundation for Societal Health

Almost a decade ago a book was published that seemed perfectly attuned to its time, as an economic crisis created by Wall Street’s excesses churned the emotions of the entire nation. It was called Inquiries into the Nature of Slow Money: Investing As If Food, Farms, and Fertility Mattered. The title was obviously inspired by the Slow Food movement begun in Italy by Carlo Petrini, who wrote the foreword. The book’s author, Woody Tasch, turned out to have an extensive background in the more idealistic byways of finance capital. He pioneered mission-related investing as a foundation chair in the ’90s and went on to chair a nonprofit network of angel investors who put hundreds of millions into early-stage sustainability-oriented businesses. He was also the founding chairman of another socially responsible project, the Community Development Venture Capital Alliance. Clearly no newcomer to the world of money, Tasch knew well all of its hazards and pathologies, the capital flows racing around the world at the speed of light that can upend a nation’s economy almost overnight, the charitable organizations that devote much of their budgets to swanky New York offices and so on. Continue Reading →

Book Excerpt: The Simple Has Been Made Complicated

The following is an excerpt is reprinted from SOIL: Notes Towards the Theory and Practice of Nurture Capital by Slow Money founder Woody Tasch.

We live in a world in which the complicated has been made simple and the simple has been made complicated.

Pushing the power button on your computer, simple. Having an authentic conversation with your neighbor, complicated. Buying a bag of potato chips, simple. Growing potatoes in your front yard, complicated. Owning a diversified portfolio of gold stocks, simple. Making a loan to a farmer down the road, complicated.

So, forget about matters of the Thoreauvian or fiduciary kind and think about the farmer down the road. And about Newman’s Own.

How beautifully simple. Giving away all the profits:

Our “100% of Profits to Charity” commitment is one of two founding values upon which Newman’s Own is built (the other being “Quality Will Always Trump the Bottom Line”). It’s a very important part of our story, it’s in our DNA, it’s why we exist, it motivates all of us, and it’s the true heart of Newman’s Own. We are proud of this commitment, and, especially in these times of so many promotional programs tying business sales to social purpose, want to be clear and unambiguous about what we mean when we say “100% of Profits to Charity.” It’s not something we just thought up to boost sales, it’s not a play on words, and one shouldn’t need an accounting degree to understand it. We have been doing it for close to 35 years, and as of May 2017, have donated over $490 million to thousands of deserving organizations around the world.1

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Ecological Economics

Herman Daly, Ph.D., is an ecological economist and professor emeritus at the University of Maryland’s School of Public Policy. His life’s work is to explore how massive-scale human activities can be ordered in ways that take into account the biosphere — “ecosystem services” in economic parlance — the life support systems on which everything depends. As a professor, he’s encouraged students to look beyond the existing neoclassical economic paradigm — the one that says we can, in essence, have infinite growth on a finite planet. Daly came of intellectual age in the late 1950s and early ’60s while attending Rice University in Houston, Texas, his home state. He believed economics was a good choice for a major because it combined humanities, science and philosophy, and he figured it might help him make a living upon graduation. But he later decided choosing economics was a mistake, “because economics along with social science generally does not really have one foot in the sciences and the other foot in the humanities. I kind of thought it had both feet in the air,” he says. Still, that sophomore-year mistake led to his life’s work — attempting to ground economics in both the physical sciences and in the humanities and ethics. After receiving his Ph.D. from Vanderbilt University, Daly taught economics for a time, then went to Northeast Brazil to teach as Ford Foundation Visiting Professor at the University of Ceara. Daly worked as a senior economist in the Environment Department of the World Bank from 1988 to 1994.

He also served as a research associate at Yale University, visiting fellow at the Australian National University, and a senior Fulbright lecturer in Brazil. He has more than 100 articles to his name in professional journals and anthologies as well as many books, including Ecological Economics and the Ecology of Economics (1999); Ecological Economics: Principles and Applications (with J. Farley, 2003, 2011); and From Uneconomic Growth to a Steady-State Economy (2014).

Interviewed by Leigh Glenn

ACRES U.S.A. You’ve said you were interested in helping to resolve poverty in Latin America through economic growth and development. How quickly did that change after you entered the field of economics?

HERMAN DALY. That took a while to disappear. In a way, that’s both fortunate and unfortunate. That made it easier for me to get along as an economist, to be promoted and get tenure. From the time I graduated, it took maybe 10 to 12 years before I had some experience teaching in Northeast Brazil. Reading Mathus, Rachel Carson and more recently then, having studied under Nicholas Georgescu-Roegen at Vanderbilt, re-reading John Stuart Mill — all of those things, plus the whole big population question in Northeast Brazil.

ACRES U.S.A. What kinds of real-life examples did you see in Brazil that prompted you to question the emphasis on economic growth as a panacea? Continue Reading →