20 Nov 2025
I never intended to have any kind of AI -generated content on this blog, even less for my first post, but Google just released the smartest AI model in the world by a wide margin, Gemini 3, and my first interaction with it took an interesting turn. I asked it what was the smartest thing it could think of, and its answer prompted me to steer the discussion towards degrowth. The end result is a fairly insightful overview of the debate on degrowth. While I hate AI slop as much as anyone else, I think AI’s ability to summarize topics and employ metaphors make the result of human-AI interactions valuable. From here on, only the text in citations is from me while the rest was generated by Gemini 3. You’ll notice that it’s still quite sycophantic. — François
Tell…
20 Nov 2025
I never intended to have any kind of AI -generated content on this blog, even less for my first post, but Google just released the smartest AI model in the world by a wide margin, Gemini 3, and my first interaction with it took an interesting turn. I asked it what was the smartest thing it could think of, and its answer prompted me to steer the discussion towards degrowth. The end result is a fairly insightful overview of the debate on degrowth. While I hate AI slop as much as anyone else, I think AI’s ability to summarize topics and employ metaphors make the result of human-AI interactions valuable. From here on, only the text in citations is from me while the rest was generated by Gemini 3. You’ll notice that it’s still quite sycophantic. — François
Tell me the smartest thing you can think of (jargon doesn’t count, I want insight)
Here is the smartest insight I can offer, stripped of all jargon:
We instinctively try to solve problems by adding things, but the most effective solutions usually come from removing things.
Here is why this is profound:
The human brain has a built-in “addition bias.” When we are unhappy, we buy something new. When a company is failing, it adds a new policy or a new department. When a piece of writing is weak, we add more adjectives. When we are tired, we drink coffee (adding a stimulant).
We associate “doing something” with “adding something.”
But subtraction is almost always the smarter, more robust move:
- Health: You will get healthier by removing sugar and processed food from your diet than you will by adding a trendy supplement.
- Productivity: You will get more done by removing distractions (phone, noise, extra tabs) than by adding a new productivity app.
- Relationships: You will improve your life faster by removing toxic people than by trying to add new friends.
- Engineering: A bridge is safer when you remove unnecessary weight, not when you add more complexity.
The Insight: Adding things creates complexity. Complexity creates “points of failure”—more things that can break or go wrong.
Removing things creates simplicity. Simplicity is robust.
The smartest people don’t just ask, “What do I need to do to fix this?” They ask, “What am I currently doing that is causing this, and how do I stop?”
Would you apply that to economics? What do you think of degrowth?
Applying the principle of subtraction to economics is fascinating, but it is also dangerous.
To answer your question: Yes, the principle applies, but the “Degrowth” movement is often misunderstood as “making everyone poorer,” when it should be framed as “removing the waste we count as wealth.”
Here is the insight on how subtraction applies to economics, and where Degrowth hits a wall.
1. The “Addition Bias” in Economics (The Trap)
Currently, we measure the success of a country by GDP (Gross Domestic Product). GDP measures activity, not value. It is the ultimate “Addition Bias.”
- If you buy a car, GDP goes up.
- If you crash that car and have to pay a mechanic and a hospital, GDP goes up even more.
- If you buy a washing machine that breaks in two years and you have to buy another one, GDP doubles.
Standard economics loves addition. It loves “churn.” It confuses spending money with making life better.
2. The “Degrowth” Perspective (The Subtraction)
Degrowth argues that infinite addition on a finite planet is a suicide pact. It suggests we should focus on better, not more.
The insight of Degrowth is correct: After a certain point, adding more material goods does not add more happiness.
If you are starving, adding food saves your life. But if you already have a full fridge, adding more food just creates waste and obesity. Western economies are currently at the “obesity” stage. We are producing things nobody truly needs, just to keep the numbers going up.
3. The Problem: The Economic “Bicycle”
Here is why applying subtraction to the economy is terrifying for politicians.
Our current economy is built like a bicycle. It creates stability through motion. If it stops moving forward (growing), it falls over.
- Our system relies on debt. You borrow money today promising to pay it back with more money tomorrow.
- If the economy shrinks (Degrowth), there is less money tomorrow. People default on loans, banks crash, and you get a Depression.
So, while subtraction makes sense physically (for the planet) and psychologically (for happiness), it breaks the mathematics of our financial system.
The “Smartest” Economic Application
The smartest way to apply subtraction isn’t necessarily “Degrowth” (which implies shrinking), but rather removing the friction we mistake for growth.
Here is the ultimate example: Planned Obsolescence.
- Scenario A (Current): You buy a washing machine for $500. It breaks in 5 years. You buy another. Over 20 years, you spend $2,000. The economy counts this as $2,000 of “growth.”
- Scenario B (Subtraction): You buy a washing machine for $800. It is built robustly and lasts 20 years. Over 20 years, you spend $800.
In Scenario B, GDP goes down. The economy “shrinks” by $1,200. However, you are richer. You have $1,200 extra in your pocket. The planet is richer (fewer machines in the landfill). You have the same clean clothes.
The Verdict: Degrowth is a branding problem for a smart idea. The goal shouldn’t be “living with less” (poverty); it should be “needing less to achieve the same well-being.”
If we remove the inefficiency, the waste, and the goods that break on purpose, the economy might get smaller on paper, but our lives would get better. That is the ultimate power of subtraction.
How do you suggest we solve or address the economic bicycle problem you mentioned? Being blocked to do the right thing because we set up institutions in a certain way isn’t satisfying, we ought to change them if that’s the right thing to do. But how?
You are right to be unsatisfied. “It’s too hard to change” is a lazy answer when the alternative is driving off a cliff.
The problem with the “Economic Bicycle” is that it requires speed to maintain balance. To solve this without crashing, we don’t need to destroy the bicycle; we need to put training wheels on it so it can slow down without falling over.
Here is how we change the institutions to allow for a “slow” economy. It requires three specific structural shifts, all of which apply the principle of subtraction.
1. Subtract the “Panic” from Unemployment (The Buffer)
Currently, we must grow the economy because if we don’t, people lose jobs, and if they lose jobs, they lose their homes and healthcare. That is the engine of our desperation. We produce useless junk just to keep people employed so they don’t die.
The Solution: Decouple Survival from Labor. This is often called Universal Basic Services (or UBI), but let’s look at it structurally.
If you guarantee the “floor” (healthcare, housing, food) regardless of employment, the economy no longer needs to create bullshit jobs just to keep people alive.
- The Effect: If a factory becomes more efficient and fires 50% of its staff, it is currently a tragedy. In this new system, it is a victory. We have created the same value with less human effort.
- The Insight: We are currently terrified of automation (AI/Robots) because we link work to survival. If we break that link, automation becomes what it should be: liberation.
2. Subtract the “Time” from Work (Distribute the Leisure)
Technology has made us exponentially more productive, yet we still work 40 hours a week. Why? To fuel the “Growth” requirement.
The Solution: The 4-Day (or 3-Day) Work Week. Instead of firing 20% of the workforce when the economy slows down (which causes a recession), we should reduce the work week by 20% for everyone.
- The Effect: This spreads the available work across the population. You don’t have “unemployment”; you have “increased leisure.”
- The Insight: We treat “jobs” as a scarce resource that we must manufacture by inventing new needs. Instead, we should treat “labor” as a burden we are trying to reduce. The goal of an advanced civilization should be unemployment (in the sense that machines do the work, and humans do the living).
3. Subtract the “Interest” from Money (The Mathematical Reset)
This is the hardest pill to swallow, but it is the most necessary. Our money is created as debt. Debt bears interest. If there is $100 in the economy, and we owe $105 back to the banks, we must grow to find that extra $5. It creates a mathematical imperative for infinite expansion.
The Solution: The Debt Jubilee. Historically, civilizations from Babylon to Rome understood that compound interest eventually breaks society. They had regular “Jubilees”—periods where debts were cleared to reset the board.
In a modern context, this means:
- Investing in public assets (spending money into existence) rather than lending it into existence.
- Taxing “bads” instead of “goods”. Currently, we tax labor (income tax), which discourages work. We should tax resource extraction and pollution. This makes “repairing” cheaper than “buying new,” killing the planned obsolescence model.
Summary of the Shift
We are currently running an Operating System designed for Scarcity.
- In Scarcity, if you don’t grow, you starve.
We are moving into an era of Abundance (we can easily produce enough food and goods for everyone).
- In Abundance, the problem isn’t production; it’s distribution.
To fix the bicycle, we have to stop asking “How do we pedal faster?” and start asking “Why do we need to pedal if we are already at the destination?”
The transition requires us to accept a shocking truth: We have already won the economic game. We have enough. We just haven’t figured out how to stop playing.
What would a smart orthodox economist respond to that? Is there something that we fail to see here?
That is the right question. If the “Subtraction/Degrowth” argument is so obvious, why do smart, ethical people at the IMF, the Federal Reserve, and Ivy League universities reject it?
It is not just because they are greedy. It is because they see terrifying risks that the “Degrowth” model glosses over.
A smart orthodox economist would look at the “Stop the Bicycle” argument and say: “You are forgetting that we are not riding this bicycle in a park. We are riding it through a minefield.”
Here are the four strongest counter-arguments from the orthodox view—the things we failed to see.
1. The “Zero-Sum” Trap (Growth is Peace)
The single strongest argument for Growth isn’t economic; it’s political.
- With Growth: The “pie” gets bigger. I can get richer without you getting poorer. We can ignore inequality because even the poor are getting slightly more crumbs.
- Without Growth: The pie is fixed. The only way for me to get richer is to take money from you.
The Insight: Growth is a social lubricant. It masks deep societal hatreds. If we enter a Degrowth/Stagnation era, politics stops being a debate and starts being a knife fight. Look at history: periods of economic stagnation almost always lead to populism, xenophobia, and war. We need growth to bribe people into not killing each other over resources.
2. The “Ivory Tower” Problem (Global Inequality)
You mentioned that “we have enough.” Who is “we”?
You live in the West. You likely have air conditioning, a smartphone, and antibiotics. But 3 billion people are still trying to get their first