Destruction

Capital is a living organism, and Consumption is a form of killing. We need to consume to live, and so we need to ask how much of the Consumption is part of the cycle, shifting energy from one form to another, and how much is destructive. Sustainable Consumption reinvests. Meaning that not all that is produced is consumed. Reinvestment leads to Sustainable Growth. Consuming more than is produced gradually destroys what is there. Living hand-to-mouth with zero reinvestment is destructive. It is living in the present to the exclusion of all that will follow. Actuaries typically talk about a “Sustainable Rate of Return” of 3.5% for the average retiree aged 65 years old with a prudent base of Capital working for them. This means if you “see” a million dollars (ka-ching!), you should really “see” a sustainable stream of $35,000 a year if you are a custodian. See Capital as the trees, and sustainable income as the fruit. Ash doesn’t produce fruit.