The Sustainable Solution

If you're in the wrong industry right now, 'business as usual' is no longer a viable option. Change is necessary; adaption is required for survival. Governments, business owners, and layed-off workers alike are scratching their heads over what to do next. We are witnessing a once-in-a-lifetime opportunity to drastically alter the economic paradigm... out of necessity.

We need to change course, but to what direction? How can we cut costs, improve the chances for profit, and ensure that we won't be caught in this mess again? The one word answer is Sustainability.

Lots of people are telling me that we need to solve the current financial situation before even thinking about social and environmental issues like poverty and climate change. They argue that we need cheap credit and more spending in the short-term to buy our way out of this recession. Once consumption levels are back up, then we can turn our attention to more 'luxurious' items like income inequality and ecosystem protection. I couldn't agree less. If we keep borrowing and spending on consumption (i.e. buying things that lose value or depreciate with time), then we will only be making the problem worse for the future. Instead, if people, companies, and governments strategically invest (i.e. buy things that become more valuable as time passes), our future will look brighter and we will become wealthier.

The typical argument against investments in sustainability is that short-term costs take too long to pay back. I've heard business people groan about a 5-year payback time on new windows or the installation of a solar energy system. For some reason, they are scoffing at a very safe 20% return on investment. Even more, it will reduce someone's carbon footprint and help create lots of new green jobs! With interest rates as low as they are, businesses should be encouraged to make investments in waste reduction and energy efficiency. Banks should be encouraged to prioritize this type of loan from governments that would provide incentives and aid packages targeted at employing low-skilled workers and cutting CO2 emissions. For a more detailed description of what this might look like, read this article.

Just as FDR created a New Deal for the American people in 1933, Obama has a unique opportunity to enact Change and create Hope. He's been speaking with some great organizations, like the Center for American Progress, and has announced a great energy team.

A change is gonna come, oh yes it is!