Natural Capitalism

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.