Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts

Saturday, October 13, 2018

Global Warming Denialism: A Religion


The global warming denialists are the controlling force in America. They are economically powerful and their viewpoint reigns in the federal and many state governments, led by the Denialist In Chief, Donald Trump. They deny all scientific evidence of global warming and claim that the vast majority of scientists, who accept the evidence of global warming, are dishonest.

The science of global warming is accepted by nearly all other nations and their political and economic leaders. The United States stands almost alone in rejecting modern science in this and in some other ways as well. It is certainly the only economically powerful nation whose government denies global warming. Most global warming denialist organizations are American. There is an international organization, known as Clexit (named in imitation of Brexit), which has members from 26 countries, but few if any of those countries officially deny global warming.

There is no scientific evidence that could possibly convince denialists that global warming really is happening. Not only is it a pseudoscience, but it is a religion, since most of its adherents cling to denialism with a religious zeal. Some will even go so far as to say that God will not permit global warming to occur. Senator Jim Inhofe cites Genesis 8:24 as evidence, although that verse says absolutely nothing about global warming. God is in control of the weather, he says. So I guess when powerful hurricanes keep hitting the United States and other countries as well, we need to blame it on God. Certainly not on humans. Absolutely not on Republicans.

It is not merely the scientific evidence that American leaders reject. It is the economic evidence. American leaders say that we cannot afford to make the changes that are necessary for us to reduce carbon emissions. (They are probably right; we are spending our money cleaning up after powerful hurricanes, and, soon, building a border wall.) But economists everywhere in the world, including some in the United States, claim that the cost of doing nothing about global warming will be immense. Already municipalities that are not preparing for global warming are receiving lower credit ratings, which means they will have to pay higher interest rates on loans. The reason is simple. If a city does nothing to prepare for rising sea levels and powerful storms, investors might lose their money in those cities.

Not only do most economists in the world believe that global warming is a real threat, but most believe that a carbon tax is the most sensible economic incentive to promote action. This is the belief of this year’s two winners of the Nobel Prize in Economics: William D. Nordhaus and Paul M. Romer, both of them prominent American economists.


[Photo from New York Times]

In economics as in science, American scholars lead the way in dealing with global warming. Certain large American corporations, and the politicians whom they own, however, lead the way toward denialism. Around the world, American scientists and economists are in demand (a university in China wants me to teach for them, and I am not even a prominent scientist), but the world largely distrusts the American government. According to the New York Times, Robert Stavins, head of Harvard’s Environmental Economics Program, says, “Any Nobel Prize linked with global climate change will inevitably be seen as an international critique of Mr. Trump’s outspoken opposition to domestic and international climate change action.”

The Republican Party, especially their leader who prides himself on being offensive, has begun to alienate the world. When he says “America first” he means “America only,” as if we can survive all by ourselves. French president Emmanuel Macron tried to befriend Trump, inviting him to Bastille Day celebrations last summer, so much so that commentators started calling it a Bromance. But since that time Macron has denounced Trump, using colorful language, and announced that France would not make further trade deals with America as long as it rejects the most recent international climate change agreement. I cannot find a transcript of his speech, but when I heard part of it, I clearly heard him use the word bêtise, which translates into stupidity.

We have many of the world’s best scientists and economists, but the world increasingly thinks our government is stupid. Can you blame them?

Denialism is a religion because denialists believe it so strongly that they are willing to send us into a future of economic decline and possible collapse. Republican religious zeal will take us to the end of civilization.

Wednesday, October 2, 2013

Stumbling toward Collapse

It is now 10 Vendémiaire on the French Revolutionary calendar. This past weekend, two friends and myself participated in the Prairie Festival at The Land Institute in Salina, Kansas. Each year, the Prairie Festival is part scientific meeting and part celebration. The formal presentations, mostly by scientists and economists, are not in a climate-controlled room at a conference center, as they are at most meetings, but inside of a big, old barn. People sat on folding chairs or, in my case, on the dirt. Swallows flew in the rafters. The wind swayed one of the big barn doors, as it has at least since I began attending the Festival about 1995, and I keep wondering when it will finally collapse. The celebration part was a Friday night barn dance (in the same barn, sans folding chairs) and folk singers, including the incomparable Ann Zimmerman. There is a newly-constructed fire circle, and many of us sat by a bonfire until long after the stars appeared on Saturday night.

The Land Institute scientific staff gave us an update on their work. They continue to make progress in breeding wild wheatgrass (which they have renamed “kernza”) and wheat-wheatgrass hybrids, so that in the future the world might be able to produce grain without having to plow the soil or use chemicals. (This is because kernza is a perennial.) At the Saturday evening dinner (eaten outside by people sitting on the ground or bales of hay), we got to eat some of the kernza. Not as delicious as wheat, but certainly sufficient. The staff scientists are also breeding wild prairie silphium into an oil crop, and making sorghum-Johnsongrass hybrids. If they do produce perennial sorghum, it will be a benefit not only to American agriculture, but to African agriculture, according to a Ugandan graduate student who was one of the scientific presenters.

But there were also presentations by economists. I will share insights from John Fullerton and Lisi Krall. Fullerton is the founder of the Capital Institute, which promotes sustainable and responsible spending and investment. Fullerton was one of the inventors of complex derivatives, but he could see that such financial practices would lead to collapse, so he got out of the stock market in 2001, long before these financial practices caused the financial meltdown of 2008. He was a very rich man who walked away from his golden pig. He demanded that CEOs apologize for the willful misconduct, violation of trust, and arrogance that led to that meltdown; I’m not aware that he received any response to his demand. He even wondered if the misconduct of the CEOs of big financial corporations were guilty of crimes against humanity. Krall is an economist at SUNY Cortland.

Fullerton had some bad news for us. (There is a reason that economics is called the “dismal science,” and it is not just because of the lingering legacy of Thomas Malthus.) The ecological reality is that we live in a finite world, something that even today many or most economists will not admit. Fullerton said that all economic models begin with the assumption of three percent growth per year, which cannot continue in a finite world. There are several proposals for how to fix the economy and fit it into ecological reality, including carbon taxes and impact investing by conscientious rich people. (There are more conscientious rich people than you might think. They are quiet about their good work promoting sustainable development.)

Krall had even worse news for us. Before we can do anything, she said, we have to look into the black hole and admit our problems. Our economic system is built upon the premise that we can ignore “externalities” such as pollution, global warming, and soil erosion. Another premise is that profitability comes from reducing labor costs. Therefore, our economic system leads to job elimination and lower pay. Resource depletion, global warming, job loss, and lower pay are therefore what come out of our economic system when it is working the way it is supposed to. These unacceptable outcomes are the result of what we usually consider sound business practices. Therefore we cannot solve the problems of the world by means of our current economic system. We need a new system. Of course, we are in denial on this point. There are (mostly Republican) global warming denialists, but most of us (including progressives, especially the green-tech optimists) are economic denialists. Since our economy even when it is working right is unsustainable, we have a failed economy. It hasn’t collapsed yet—Congress is working hard to make this happen—but we already have the terminal disease metastasizing. (This last sentence is mine, not Krall’s.) She ended by saying that we live in the waning days of our economy; we can only choose the manner in which we will participate in its closure. “Is there enough of the wild left in us to do this?”

But Fullerton also had some good news for us. But even this good news is rooted in bad news. Of the 60,000 top corporations in the world, only 1,000 have half of the wealth. And each of these corporations has a few major investors. He said that there are only about a thousand investors in the world who really matter in shaping the future of the economy. So we could solve our problems by convincing these thousand investors. Some, like Warren Buffett, are already convinced; some, like Donald Trump, never will be. But we don’t need to convince all one thousand. If we convince maybe a hundred, we can cause a shift in the economic landscape, resulting in a surprisingly quick transition to a sustainable world. We need an economy with resilience—and resilience, he said, does not mean having to keep getting bailed out by the government. The 2008 federal bailout was, by its very existence, evidence of the failure of our economic system.

In my view, if our economy were working as it was meant to work, we would be striding toward disaster. Congress has created an artificial crisis that totally consumes their attention and diverts it away from solving long-term problems. As a result, we are now stumbling toward disaster.

Someone asked Fullerton what the new generation, people under thirty, should do. His answer did not satisfy anyone, least of all himself. He said that World War Two gave his father a sense of purpose and meaning in life. Those of you who are under thirty will face economic disruption, and the one thing about it is that it will give you a sense of purpose. Gee, thanks a lot, I thought; the Donner Party had a sense of purpose (I wonder if I can eat the sole of that shoe? I wonder if that corpse has been dead too long to eat?). I’m 56 years old, but my daughter is under thirty; behold the world we bequeath you, Anita.


I expect that conservative commentators would have a lot of misinformation to provide about the Prairie Festival. They would certainly label the presenters as socialists and usurpers of the American tradition of rulership by the Rich, and would probably even call the fire circle a pagan wiccan ceremony.