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Natural Capitalism

News: We can create new jobs, restore our environment, and promote social stability. The solutions are creative, practical, and profitable.

March/April 1997 Issue


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Somewhere along the way to free-market capitalism, the United States became the most wasteful society on the planet. Most of us know it. There is the waste we can see: traffic jams, irreparable VCRs, Styrofoam coffee cups, landfills; the waste we can't see: Superfund sites, greenhouse gases, radioactive waste, vagrant chemicals; and the social waste we don't want to think about: homelessness, crime, drug addiction, our forgotten infirm and elderly.

Nationally and globally, we perceive social and environmental decay as distinct and unconnected. In fact, a humbling design flaw deeply embedded in industrial logic links the two problems. Toto, pull back the curtain: The efficient dynamo of industrialism isn't there. Even by its own standards, industrialism is extraordinarily inefficient.

Modern industrialism came into being in a world very different from the one we live in today: fewer people, less material well-being, plentiful natural resources. As a result of the successes of industry and capitalism, these conditions have now reversed. Today, more people are chasing fewer natural resources.

But industry still operates by the same rules, using more resources to make fewer people more productive. The consequence: massive waste -- of both resources and people.

Decades from now, we may look back at the end of the 20th century and ponder why business and society ignored these trends for so long -- how one species thought it could flourish while nature ebbed. Historians will show, perhaps, how politics, the media, economics, and commerce created an industrial regime that wasted our social and natural environment and called it growth. As author Bill McKibben put it, "The laws of Congress and the laws of physics have grown increasingly divergent, and the laws of physics are not likely to yield."

The laws we're ignoring determine how life sustains itself. Commerce requires living systems for its welfare -- it is emblematic of the times that this even needs to be said. Because of our industrial prowess, we emphasize what people can do but tend to ignore what nature does. Commercial institutions, proud of their achievements, do not see that healthy living systems -- clean air and water, healthy soil, stable climates -- are integral to a functioning economy. As our living systems deteriorate, traditional forecasting and business economics become the equivalent of house rules on a sinking cruise ship.



 

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"A tax system should integrate cost with price. Currently, we dissociate the two. We know the price of everything but the cost of nothing. Price is what the buyer pays. Cost is what society pays. For example, Americans pay about $1.50 per gallon at the gas pump, but gasoline actually costs up to $7 a gallon when you factor in all the costs. Middle Eastern oil, for instance, costs nearly $100 a barrel: $25 to buy and $75 a barrel for the Pentagon to keep shipping lanes open to tanker traffic. Similarly, a pesticide may be priced at $35 per gallon, but what does it cost society as the pesticide makes its way into wells, rivers, and bloodstreams?" How come gas companies have record profits? Society may not be the problem as much as corporate tax law. When did US companies lose their patriotism and what is good for the country versus what is good for the shareholder?
Posted by:MikeJune 7, 2007 8:44:57 AMRespond ^
Capitalism, religion and overpopulation. Mother Earth doesn't stand a chance unless capitalistic model takes on some socialistic thresholds, religion is treated as another type of brain-washing, and sterilization is implemented for those who can't care for babies they have.
Posted by:LouJune 7, 2007 8:48:40 AMRespond ^
Great Words of world wide importance! The whole world can now see the signs. If all world Governments,Rich Indrustries and People in power work together (hope) and change prioritys, maybe the current children and furture generations may stand a chance? Many people have made Money,Tax,Greed,Wealth,Power and lack of care priority for hundreds of years on planet earth, I wonder how long any Person/human can survive without Air,Water,Food,Shelter,and Support, as all those things are Related to the environment we all share (planet earth)(mother earth) keep up the Goodness and Positive action Paul Hawken, Motherjones and Inteligent people of Earth R.Smith (not Jones), haha, lol
Posted by:RobAugust 4, 2007 10:50:35 PMRespond ^
The problem has been brewing since before Adam Smith's writing, the British East India Co. spawned the Boston Tea Party, and Abe Lincoln sued a Railroad Co. for his wages. See Thom Hartmann's work. Fortunately, Food Coop's are fairly numerous, Organic Food and Fair Trade have international NGO's, as do Wind Power, Solar Power, Cooperatives, and Whole Cost Accounting. See Coopdirectory.org and IFOAM.org, for example, or my site, bluegreenmarble.com. The only way out is to act and speak up again and again. Worldwide organics already total some $25 billion, and Fair Trade involves millions of producers. We've got to get moving! I thought it was also pretty courageous in around 2005 when ministers protested at the World Economic Forum about outrageous levels of executive compensation. God bless you and all of us.
Posted by:Mark New YorkFebruary 4, 2008 6:58:36 AMRespond ^

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