After having watched the documentary “Maxed Out“, I couldn’t help but think about what economic sustainability would look like. The first step is fiscal responsibility. As mentioned in an earlier post, we as a society have over spent, borrowed excessively, and lived beyond our means as individuals and as a country. Both economic and social sustainability make up the other two legs of the “sustainability stool”. However, these two do not receive as much attention.

With questions about the economic recovery, including recent reports of nearly 300,000 jobs added to payrolls last month – and half a million since the beginning of the year – how can we ensure that economic growth is sustainable? The green economy is only one factor for sustainable growth.

As reported on NPR earlier this month, Dow Corning’s solar component manufacturing division created 200 jobs, a nice addition, but only a tiny fraction of the overall recovery. With that in mind, what will allow for continued, smart, sustainable improvements in the economy? The aforementioned film provides some insightful reminders as to what to do and what not to do. For example, many of the people featured were living off of credit, creating an unsustainable situation. In addition, predatory business practices created further obstacles for those that are economically disadvantaged.

Until real fiscal reform comes to the government, as well as basic economic education for all Americans, the vicious cycle seems destined to continue. In fact, NPR also reported that consumer borrowing increased. While borrowing and subsequent spending helps spur the economic engine, is the borrowing ultimately sustainable?

Markets may be cyclical, but fiscal responsibility should never go out of style.

- Eric Wilson

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