Many economists have questioned the ability of a capitalist economy to account for the environmental damage that human production and consumption are causing. They also point out that using macroeconomic policy to limit production and reduce the use of natural resources is not an option because that would cause unemployment, bankruptcies of capitalist firms, and defaults on debt. Government leaders would never go along with "degrowth". So how, then, can an economic and social system based on continued growth of output avoid environmental catastrophe?

Some economists have proposed policies that can deal with this problem. Explain how macroeconomic policy could, in principle, simultaneously reduce humanity's ecological footprint on Earth, avoid unemployment, and even raise overall human well-being. Then assess whether your proposal could realistically be carried out given the current state of our economic, social, political, and natural systems.