Chelsea Green Publishing

Chelsea Green Blog

Hrens: The First Death Rattle of Our Unsustainable Economy

If the collapse of Wall Street these past few days has proven anything, it’s that our economic system is unsustainable—the philosophical underpinnings of capitalism (Never-ending growth! Infinite resources!) are a fairy tale. The free market model just doesn’t work.

We hate to say we told you so.

Rebekah and Stephen Hren, authors of The Carbon-Free Home: 36 Remodeling Projects to Help Kick the Fossil-Fuel Habit, have much more to say on the subject.

Last week’s gyrations on Wall Street come as little surprise to most folks who have taken a critical eye towards our economic system. What you are seeing is the first death rattle of our truly unsustainable economy. We’ve been told for a long time that our way of life is unsustainable, which, we hate to point out, means that it cannot be sustained. To rephrase, it must end sometime! And that’s precisely what is happening.

At the root of the financial debacle is the housing slump, which has a variety of causes. Primary among them is the fact that many lower and middle income folks are cash-strapped and can’t make their mortgage payments, especially as adjustable interest rates rise. Many of the homes sold to subprime lenders were new constructions built out in the boondocks, where the only available transportation is the automobile. As gas prices rose, these mortgage payments became that much more untenable. And gas prices rose because oil supplies have plateaued, having barely budged in the last four years. Even as supplies stagnated, demand in China, India, Russia, and Middle East has been growing at 5% to 10% a year, meaning less and less for us each year.

Neoclassical economics, which is the philosophical underpinning of our financial system, did a decent job of describing what was going on in the world when access to supplies of raw materials were generally increasing. It is a philosophy of continual and never-ending growth. Unfortunately, when access to materials begins to become constrained, the multitude of inherent contradictions rises to the surface like the bloated carcass of a whale.

A perusal of a few of the most obvious fallacies should prove enlightening.

Just as we would look askance at a mother who believes her child will grow forever, or a gardener who believes their tomato plant will one day reach the heavens, the sanity of the economist who believes the economy can grow forever must be similarly suspect. Infinite growth is not possible in a finite world! Remember, it must end sometime!

Likewise, the idea that neoclassical economics (also referred to as capitalism) is the most efficient economic system is complete and utter malarkey. What is efficient about everyone owning a car that they only use an hour or two a day? Or a lawnmower they use for thirty minutes once every two weeks? Or a tiller they might use once a year? Not only do these things have to be made from the finite materials of the earth, but people have to work in order to build them and afford them. From a resource use point of view, sharing is vastly more efficient than individual ownership.

Capitalism is efficient at taking resources and converting these into a product, and then selling us this product whether we want it or not. What it does not take into consideration is that there might be any ill effect from the energy used, the waste created, the limits of raw materials, or whether the ownership of that product will in fact make us the slightest bit more content. Other than that, it’s perfect!

Read the whole article here.


BORN ON THIRD BASE author, Chuck Collins, to be interviewed by Bernie Sanders

On Tuesday, October 3rd at 11:30 a.m. EST, check out Facebook.com/SenatorSanders for a special Facebook Live event with Senator Bernie Sanders and Chuck Collins, Institute for Policy Studies, author of Born on Third Base, co-editor of Inequality.org. In case you miss the live broadcast, you can watch the replay on the Facebook event page. In […] Read More

Q&A with Kate Raworth about her radical new book, DOUGHNUT ECONOMICS

Q: First things first: Why did you want to write this book? A: I studied economics at university 25 years ago because I wanted to make a difference in the world and believed that economics – the mother tongue of public policy – would best equip me to do that. Instead, its theories left me […] Read More

Revisiting Naomi Wolf’s Call to Patriots–10 Years Later

Reading Naomi Wolf’s book The End of America: Letter of Warning to a Young Patriot today is an eerie experience. Written in 2007, it detailed the ways in which the Bush administration was beginning to chip away at the freedoms of American citizens. It outlined the ten steps dictators or would-be dictators take when their […] Read More

Yes, America We Can Make It … Really

Uncertainty got you down? The political world may seem like it’s crumbling around us, but this we know: We can make it, America. Literally, we can make things. Houses. Gardens. Food. Below we’ve selected some of our classic how-to and DIY books (and some new favorites) to help you sustain your self, family, and community. […] Read More

Chelsea Green on Instagram: Our Most Popular Photos of 2016

What a year for Chelsea Green on Instagram! We began the year with 500 followers and are now fast approaching 4,000 photo-loving brewers, gardeners, cheesemakers, permaculturists, foodies, seed-savers, homesteaders, foragers, and more. Our most popular posts of 2016 say a lot about what makes you happy: mushrooms, innovative garden designs and techniques, tiny cabins, and […] Read More
+1
Tweet
Share
Share
Pin