By Monika Simon1 min read
Degrowth is not a recession
A recession is a growth economy failing. Degrowth is a deliberate choice about what should grow and what should shrink.
Whenever I say the word degrowth in a boardroom, someone thinks of a recession: layoffs, falling revenue, crisis. I understand the reaction, but the two are opposites.
A recession is an economy built on growth stalling unexpectedly. Degrowth is a planned transition: we shrink what burdens the planet and people, and strengthen what creates real value.
It does not mean giving up profit. The question is where profit comes from: selling more units, or longer-lasting products, services, repair and longer customer relationships.
- Services instead of products: leasing, maintenance, take-back
- Fewer, better product lines that last longer
- Success measures beyond turnover: material use, emissions, wellbeing
The question is not whether to grow, but what should grow, and at what cost.
Redesigning a business model around degrowth always starts with an honest inventory: which activities create real value, and which only create volume.
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