Economics is bunk!
This was the title of the BBC Radio 4 programme presented by Edward Goldsmith
(former editor of the Ecologist magazine) on 25th Sept 1994. Many of the
arguments supporting his case are as valid today as they were then. The
free mobility of capital combined with globalisation has replaced the
principle of 'comparative advantage' in free market trading. There has
been an increase in 'futures' (derivatives) trading i.e. gambling on the
price of commodities that have not yet been produced. Huge wage differentials
across the world have also led multinational companies to transfer business
operations and manufacturing to countries where labour is cheap (notably
China). This is also happening in service industries. This trend has led
to a massive increase in energy use and greenhouse gas emissions as products
are made by factories with poor emissions standards (usually using coal
as the fuel source) and are transported very long distances.
Because of the way in which capital is accumulated through exploitative
interest payments, economic growth inevitably involves an increasing gap
between the rich and the poor across the world.
The direct link
between economic growth and the use of fossil fuels will almost inevitably
cause a world recession as oil and gas reserves are unable to meet demand.
In this situation all societies will suffer - but some more than others.
Nuclear power is not a viable, economic or safe alternative source of
energy and many of its advocates have not properly considered its shortcomings.
The move to develop renewable sources of energy by governments have
been extremely slow because short term economic considerations have
been put before common sense. Governments and ordinary citizens in affluent
societies have exhibited reckless irresponsibility by putting short
term convenience and pleasures before the basic needs of future generations
and the world's poorest people.
Most scientists
now agree that global warming will have serious economic implications
in the future even if stringent measures are taken now to cap and then
reduce the use of fossil fuels year on year.
Banks and multinational companies play a prominent role in compounding
the environmental and social crises developing across the world.
In Britain social breakdown is being manifested in statistics for violent
crime, drug addiction, binge drinking, teenage pregnancies, sexually
transmitted diseases, obesity and personal debts. Many social and environmental
indicators place Britain at or near the bottom of European league tables.
Economic growth is measured in a ridiculous way that gives no indication
of its social and environmental impact i.e. by gross national product
(GNP) which lumps together the output of all goods and services even
those that have negative social and environmental outcomes.
Is now the time
for the development of a new science that can reflect true sustainability
and a fair distribution of wealth between people across the world? See
Philonomics -
A Science of Common Sense.