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Sustainable Capitalism, The “Green Lining” in the Recession

chryslertower

Spire of the Chrysler Building, New York, United States (N 40°45’ – W 73°59’)

 

We are all being affected by the recession. The economic downturn is felt up and down the social ladder and across the globe. From individuals and families to corporations and countries—we are all “tightening our belts.”

The crisis has created a significant amount of change. From the way we live, how we spend and to how we save, we are all doing things a little bit differently than a few years ago. There has been an awakening to the reckless ways that we have lived so far.

Short cuts, low margins, inflated assets, fudged numbers, the exploitation of resources and markets all contributed to an unsustainable economy.

Ultimately, that way of life led to our current plight.

It took a drastic and widespread economic downfall for us to realize that we cannot continue down this path and that things do need to change.

But first, let’s look at how we got here.

Following WWII, a manufacturing boom occurred in the U.S. We lead the world in all forms of production. The top of the line consumer goods were made here in the good ol’ US of A. In the 1980’s the United States decided to change the way we would grow as a country economically. We shifted away from manufacturing and decided to grow through consumer spending and asset inflation. We decided to outsource most of the manufacturing jobs to any part of the world that could do it faster for cheaper.

We didn’t realize the magnitude of that decision until now.

This period of growth was enhanced by the exponential rise of the U.S. real estate market and the emergence of a larger middle class with more disposable income. That bred consumerism and consumption on a massive scale and encouraged dependence on foreign sources.

We want the biggest, fastest and most expensive things because we have let them define our status for decades now. Over 70 percent of the U.S. economy is driven by consumer spending and that didn’t seem likely to change any time soon.

When that bubble burst just mere months ago, we lacked the paper wealth that allowed us to turn into the rapid consumers and spenders that we are today. And since the U.S. shift in the 80’s, we lack the infrastructure and no longer create the things that we consume.

So, that leaves us: jobless, cautious and dependent on others. Not self-sufficient or sustainable in the least.

We are dependent on the manufacturing district in South China.
We are dependent of the various oil regions in the Middle East.
We are dependent on the corporations for economic progress.

Growth is the guiding principle of capitalism. But is it a sustainable practice? This is the discussion I hope to evoke: Can Capitalism and Sustainability live together? Or are they opposing ideals?

Yes, in nearly all economic circumstances growth is good. It makes money and creates jobs. But what happens when a U.S. corporation gets big enough to operate on a near sovereign manner in a global economy?

The rise of the modern day corporation and its relentless pursuit of profits created the ability for it to function, nearly, without limits.

Exxon Mobil operates with a budget larger than 180 nations.

The corporate sector now wields great economic and political power. Not only that but they also have a hand in nearly every level of your daily life.

You know why we have the price difference between organic and non-organic food?

The non-organic food lasts longer because it has preservatives and other chemicals. It will be sitting on the shelves, in front of the consumers for longer. Simply put, more chemicals will equal less produce lost. Therefore it will earn the farmer more money – and lower prices to the consumer.

Go ahead and pollute the bodies of the everyday Americans (or pollute your own) —so long as you can make a couple of extra bucks (or save a few), don’t sweat it.

Organic food is just one small example of the bigger picture.

The economic system a whole has not worked when it comes to protecting environmental resources because conventional wisdom is that it takes away from the bottom line.

The political system does not work when it comes to correcting the economic system because the corporations have a strangle hold on our politicians.

When the political system sticks its hand in the economic system, you hear accusations of socialism, though corporations “too big to fail” seem eager to accept government assistance whether it’s bail out money or tax relief.

Capitalism has encouraged growth on so many levels that it hasn’t mattered if we sacrifice jobs for Americans, personal health or the global environment.

Everyone is aware that the U.S. has an extensive history of moral, social and ecological evils that were all sustained in the interest of economic growth.  For many Americans and American companies, it’s been about the bottom line. No matter the detriment, we are evaluated by efficiency and profit making ability.

Capitalism is sewn in the fabric of our red, white and blue flag.

Ah, yes the “American Dream.”

The driving force of capitalism is also a main concern of sustainability. Exponential growth is in no way sustainable.

In a recent study conducted by Yale and George Mason called “Climate Change in the American Mind” found that an astounding 37 percent of Americans are not concerned about the environmental issues we face. I encourage you to look at their findings.

Bestselling author and N.Y. Times columnist Thomas Friedman thinks that is just what it might take. “For most Americans (climate change) is not an issue. That’s one of the problems; there is no Pearl Harbor of climate (change)…. Once there is we will have a broad consensus about it.”

He continued, “I feel that once the climate Pearl Harbor hits, it will already be too late.”

I hope it does not take something as drastic as this economic downturn, a Pearl Harbor or a 9/11-type event to get people more concerned about the ecological and energy disasters we face – or will it? Enter the global recession of 2008/09.

A new consciousness is quickly emerging about how we need to operate differently in the world—both economically and environmentally so you see the parallel. The growing sentiment is that there are major changes that need to be made so we can merge these two seemingly opposing ways of life and get them running on parallel tracks and indeed create sustainable capitalism.

Action needs to be taken on the commercial, political and personal levels.

It is essential that we draw conclusions from our past and apply them to avoid what will otherwise be tomorrow’s economic and ecological train wreck.

This is America’s chance to lead the world in innovation once again. Here are some things you can do to be part of the solution and an agent of change — in ascending order of time commitment:
1) Cultivate awareness, inspire change in others. Share this post and your personal message.  Bookmark and Share
2) Consume consciously, both in what you use and how you spend.
3) Write an email to your elected representative.
4) Write a thank you email to a company who is incorporating environmental practices in running a sound successful business.

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This post was written by:

Gordon Bengtson - who has written 7 posts on Earth From Above.


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2 Responses to “Sustainable Capitalism, The “Green Lining” in the Recession”

  1. Mangola says:

    Thank you for useful information.

  2. bankelamo says:

    I am very interested in this topic.

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