In today's Guardian, George Monbiot writes that capitalism -- and, most particularly, neo-liberal capitalism -- cannot solve the problem of climate change. It can only exacerbate it:
As Milton Friedman, one of the architects of neoliberal ideology, put it: “Ecological values can find their natural space in the market, like any other consumer demand.” As long as environmental goods are correctly priced, neither planning nor regulation is required. Any attempt by governments or citizens to change the likely course of events is unwarranted and misguided. But there’s a flaw. Hurricanes do not respond to market signals. The plastic fibres in our oceans, food and drinking water do not respond to market signals. Nor does the collapse of insect populations, or coral reefs, or the extirpation of orangutans from Borneo.
Friedman popularized the theory that the invisible hand of the market solved all human problems. All we need do is to put an appropriate price on a problem, and it will go away. But there are some things you can't price. Some things -- like human life, species and ecosystems . . . cannot be redeemed for money."
Friedman also popularized the idea that market solutions encouraged predictability. But the Greeks knew what Friedman didn't -- that much of life is unpredictable:
Environmental collapse does not progress by neat increments. You can estimate the money you might make from building an airport: this is likely to be linear and fairly predictable. But you cannot reasonably estimate the environmental cost the airport might incur. Climate breakdown will behave like a tectonic plate in an earthquake zone: periods of comparative stasis followed by sudden jolts. Any attempt to compare economic benefit with economic cost in such cases is an exercise in false precision.
We've been living in Friedman's world for the past fifty years. We are now reaping the results.
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12 comments:
Of course, the Greeks also had a word for all of this arrogant nonsense, Owen; they called it hubris.
For the Greeks tragedy was driven by hubris, Lorne. Not much has changed since the days of Sophocles.
"All we need do is to put an appropriate price on a problem, and it will go away."
The principal actors have prevented exactly that. They cheated. Our exalted leaders cheated. Yes, let's put appropriate prices on a problems. If we did that there are a slew of trans nationals that would go broke.
A good point, Toby. You can manipulate prices by putting your finger on the scales.
And what follows Hubris? Nemesis.
At least Milt lived long enough to publicly admit that his and Hayek's experiment was a failure. Even when that was later backed up by the IMF and the World Bank our leaders, by then hopelessly compromised by the neoliberal order, stayed the course to our ruin. The fix is in and every day worsens our prospects of ever getting out from under neoliberalism without resort to some messy upheaval.
Some diseases simply refuse to die, Mound.
Owen - In 1979 Friedman came out to Vancouver and did a presentation in front of the Vancouver Board of Trade, I believe. Of course local tv station BCTV covered him as if he were an economic genius. The snippet they broadcast was of Friedman telling the audience that state welfare wasn't needed and gave the example of California. California's biggest cash crop was marijuana, Friedman claimed and that the marijuana growers were all collecting welfare. They were earning money and didn't need welfare. Of course there was no statistical evidence or studies done at that time to back up Friedman's claim, much like Friedman's claims on free enterprise/libertarian theories.
mr perfect
Friedman's economics became a kind of theology, Perfect. It became a new religion which -- like all religions -- had to be accepted on faith.
Sometimes, Owen, like other religions, it had to be accepted on pain of death. See e.g. Augusto Pinochet and the "Miracle of Chile"
Cap
Pinochet offered Friedman a laboratory to test his theories, Cap. The "disappeared" paid for the test.
The invisible hand, like the imaccualte birth has all kinds of roman empire controlling the techonlogy. Yeah when the king wins its the invisible hand AKA GOD. But Trump is pitching a new angle, he is just a 4D chess player.
Trump knows how to pitch, Steve. But I doubt he's very good at chess.
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