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Guess What Trudeau Said About Growth?

By James Magnus-Johnston

James Magnus-JohnstonIn an appeal to Mr. Trudeau’s philosophical musings, I’ve written a letter to him listing five ways Canada can foster a better, more sustainable economy.

 

 

“There are a lot of people out there, environmental thinkers like Herman Daly and others, who talk about the fact that maybe endless growth within a finite system is not either possible or even desirable. Maybe we have to talk about shifting our focus so that instead of just growing, we’re actually developing and improving.” Maclean’s, “In conversation: Justin Trudeau” 2012

Justin Trudeau.Canadian Pacific

Canadian Prime Minister, Justin Trudeau. Photo Credit: Canadian Pacific.

Dear Prime Minister Trudeau,

Congratulations on winning a majority government. While most of the world appears to be fixated on your admirable hair and bone structure, I’m caught reflecting on these words you uttered a few years ago. I’m not surprised that I haven’t heard you repeat them recently, since very few world leaders adopt the rhetoric of the post-growth paradigm. But it’s clear that you have some fundamental knowledge of alternatives to growth.

If your handlers wouldn’t dare let you say such things on the campaign trail, it’s perhaps unlikely to think that you’ll adopt a steady state agenda during your term in office. On the other hand, what you said wasn’t printed in some obscure blog, taken out of context, or overheard in conversation. It was in a national platform, Maclean’s magazine, one of Canada’s largest newsmagazines. Your remarks appear to reveal some sincerity about your view of the world we’re currently inhabiting—a world with definable environmental limits to growth, like climate change.

Of course, the norms of the majority and rhetoric of the status quo can overwhelm the greatest idealists, especially in a centrist big-tent party like Canada’s liberal party. So I’m going to appeal to your not-so-long-lost philosophy by reminding you that many young folks are facing a bleak future. And I don’t just mean low-wage jobs. I mean a fear of catastrophic environmental breakdown, as evidenced by rapid methane releases in the Arctic and ocean acidification—both characteristics of climate change—as well as mass extinction. These are real, tangible manifestations of the limits to growth.

It’s going to be very hard to turn our atmosphere around, but we could adopt policies immediately to shift our focus “so that instead of just growing, we’re actually developing and improving.” Here are five practical ways to move us towards a better, more sustainable economy. After all, you’re the one that keeps reminding us that “in Canada, better is always possible.”

  1. Start counting some of the costs associated with GDP growth (formally or informally). Tar sands growth, for instance, has myriad costs associated with its expansion, including insured losses due to extreme weather, droughts, and floods, among other things. At the community level, some indigenous communities have no trouble getting funding for incarceration and diabetes treatments but can’t get funding for healthy food and community development. You could help turn this around.
  2. Finish what your father started experimenting with in Dauphin in 1978 and implement a basic income for all Canadians. Senator Hugh Segal has made a great case for why this is a practical idea.
  3. Consider a formal, nationwide price on carbon. You mentioned that you’d leave it to the provinces, but the only reason different provinces have different carbon pricing systems is because it’s taken so long for the federal government to get started on this in the first place. Much like the emergence of a national healthcare system, you could learn from the provincial early adopters and go nationwide.
  4. We have a central bank. Let’s start using it again for low-cost or even no-interest borrowing. If you have an ambitious infrastructure agenda, and want to do it without creating long-term debt, borrow from your own bank rather than the private banks. The debt-based private banking system has rather stupidly inflated the prices of commodities and housing for folks under the age of 40. That’s called “uneconomic growth,” and it’s fostering a generation of exploited Canadians.
  5. Help free up the working day, week, and year by encouraging greater work flexibility, like some European models. Full time employment for everyone is impossible to provide with low growth rates (like the present). Young people are the ones getting the shaft, and we’re well beyond the need for everyone to spend their lives toiling in low-wage jobs.

So, Mr. Trudeau, if you truly believe (as you said) that “maybe we have to talk about shifting our focus so that instead of just growing, we’re actually developing and improving,” I’ve just provided five examples of how your government can start doing that right away.

We recognize that the devil is in the details, and we’re here to help sort through them with you.

For a thriving, sustainable future,

James Magnus-Johnston

Canadian Director, Center for the Advancement of the Steady State Economy (CASSE)

 

Seismic Political Shifts Reveal Desire for Serious Change

by James Magnus-Johnston

If you demonstrate to people that the NDP [New Democratic Party] can win in Alberta, suddenly anything seems possible. —Paul Fairie, University of Calgary political scientist

 

James Magnus-JohnstonOn the problematic political spectrum, neither the right nor the left have become wholesale champions of the steady state economy. Then again, embracing something perceived as ‘new’ has never been the strong suit of the politician. It takes years of ideological evolution among the grassroots before seemingly new and different ideas become politically palatable. Seismic political shifts like the one in Alberta suggest that big ideological evolutions are underway in the unlikeliest of places, and that steady state solutions may not be far behind.

The Canadian province of Alberta—which includes Canada’s oil patch—revealed its desire for serious change in its election of an NDP government last week. While the social democratic NDP doesn’t have an explicitly ‘green’ agenda, some policy shifts acknowledge the limits to growth—growth in the oil patch, growth in debt, growth in inequality, growth in carbon emissions, and growth in overall environmental costs. Growing the oil patch at all costs has left the province vulnerable to swings in the petroleum economy, and it isn’t building a stable economy for generations to come.

Alberta’s newly-elected NDP premier, Rachel Notley. Photo Credit: Dave Cournoyer via Flickr, Creative Commons

Alberta’s newly-elected NDP premier, Rachel Notley. Photo Credit: Dave Cournoyer via Flickr, Creative Commons

The political shift represents a strong movement away from a half-century of Alberta’s Conservative ‘conventional thinking,’ including relaxed regulations for the oil and gas industry as well as an export-first policy designed for economic growth as if there were truly no tomorrow. Time will tell whether or not Premier Notley will introduce measures to supplant carbon-intensive growth with a renewable steady state, but there are signs of movement in this direction.

In March, as opposition leader, Notley introduced a motion calling on the government of Alberta to phase out the use of coal for electric power generation in Alberta. Alberta’s oil sector produces almost as many GHG emissions as do the mining and extraction of oil from the oilsands.

This week, one of the largest oil and gas companies in Canada called upon Premier Notley to introduce a carbon tax, a measure which sits at number two on Herman Daly’s top ten list of steady state policies. The call counts as either a brilliant coordinated manoeuvre on the part of the NDP and the oil patch, or the beginning of a serious change in the way Canada’s oil and gas industry perceives its responsibilities in the face of climate change.

The NDP victory also signals a willingness to tackle point three on Mr. Daly’s top ten list—limiting the range of inequality in income distribution. While Premier Notley has not signalled a willingness to institute a ‘maximum income’ level, she has designs on raising the minimum wage to $15 per hour from the country’s second lowest minimum wage of $10.20. The NDP have also vowed to reintroduce progressive income taxes, and raise corporate taxes.

This is not a promotion for social democracy per se. Social democratic governments in different jurisdictions, like my home province of Manitoba, can sometimes reflect neoliberal economic thinking rather than focus on designing an economy for fairness. But in Alberta’s example, folks have acknowledged the problems associated with half a century of growth in the extractive industry, environmental degradation, and inequality. As the political pendulum shifts in other jurisdictions, there is an opportunity for political parties of various stripes to reconsider how they can respond to growing grassroots frustration with a debt-ridden, environmentally destructive, inequitable economy.

As the costs of uneconomic growth continue to escalate, and as a new generation prepares to bear those costs, we can be sure that further movement in the direction of a steady state economy will not only become more palatable, but absolutely essential.

 

Progress Toward a True-Cost Economy Now Comes From Developments in Renewable Energy

by Brent Blackwelder

Brent BlackwelderA renewable energy revolution is sweeping the planet. This revolution has profound implications because it signals that the global economy is moving to stop the growth of our human carbon footprint.

The global economy has run for a century primarily on fossil fuels but is now undergoing a rapid transition to a global economy based significantly on rooftop solar, wind, and efficiency. This is a tangible movement toward a steady state economy because with wind and solar, the amount we use today does not affect tomorrow’s supply; and unlike fossil fuels, the pollution externalities are small and do not harm fellow competitors or the public.

This revolution is more than a technical fix because it is shifting the ingredients of the material products and services of the economy from toxic, polluting, non-renewable substances and ingredients to ones that are renewable and dramatically lower in pollution. It is demonstrating that renewable energy can avoid imposing dangerous impacts onto the public or onto future generations.

Skeptics over the last two decades have argued that renewable sources such as wind and solar are trivial and simply incapable of providing the power needed by the global economy—that all they will ever do is provide only a small percentage of the world’s electricity. I remember the days when utility executives belittled renewables, warning that more than about 5% of wind or solar electricity in a region would crash the grid!

Photo Credit: janie.hernandez55

The renewable energy revolution is a stepping stone toward a sustainable true-cost economy. Photo Credit: janie.hernandez55

I want to present a few startling and uplifting facts that demonstrate the dramatic progress recently made by solar and wind power around the world. 1 These facts give the lie to the phony assertions made by utilities in their efforts to block renewable energy.

Rooftop solar is growing worldwide by 50% per year. In 1985 solar cost $12 per watt, but today’s prices are closer to 36 cents per watt. Every five hours the world adds 23 MW of solar—which was the global installed capacity in 1985.

In January of 2014 Denmark got 62% of its electricity from wind. In 2013 Ireland got 17% of its electricity from wind, and Spain and Portugal both exceeded 20% from wind. Today China gets more electricity from wind (91,000 MW) than it does from nuclear reactors. The United States is second in the world in installed wind turbines, with South Dakota and Iowa obtaining over 26% of their electricity from wind.

As we look to achieve a true-cost, steady state economy, questions are constantly raised about the behavior of other powerful nations that might appear to have no interest in a sustainable economy. The renewable energy revolution provides breakthrough opportunities here. China is already putting its energy future into more and more renewable energy. It plans to more than double its current wind capacity with an expansion goal of 200,000 MW by the year 2020.

Even the French, who rely on nuclear reactors for 75% of their electricity, are planning on increasing their wind generating capacity to 25,000 MW from their present 8,300 MW.

The renewable energy revolution will enable civilization to stop the growth of highly polluting fossil fuels. It will enable society to leave the majority of the remaining reserves of fossil fuels alone and unburned. Acceleration of this revolution helps in solving many problems and is a key to restoring and maintaining the life support systems of the earth.

For a number of reasons, this renewable energy revolution is a stepping stone toward a sustainable  true-cost economy. First, unlike fossil fuels, the footprint of wind and rooftop solar is minimal. Wind turbines erected on farmland use very little land and allow farming to continue. Rooftop solar can be placed on flat commercial and industrial roofs in metropolitan areas where connections to the grid are available.

In comparison, extraction of fossil fuels can create some of the worst pollution and habitat destruction ever seen. Consider the devastation being caused in the biologically diverse mountain forests of West Virginia by mountaintop removal coal mining. Or look at the obliteration of Alberta’s landscape and contamination of its lakes and rivers from tar sands mining.

This point is substantial because far too many of the products of the global economy involve externalization of enormous pollution costs.

Second, the usage of wind and solar today does not affect the amount of wind and solar available tomorrow. They are renewable. Furthermore, wind and rooftop solar are basically waterless technologies, whereas fossil fuel and nuclear power plants use enormous quantities of water for cooling. As water shortages multiply worldwide as a result of population and industrial growth, and climate disruption, this benefit will become even more significant.

Third, wind and solar are big job creators. In Germany the number of jobs in wind and solar is about 400,000 versus 200,000 in coal and conventional fuels. This amazing boost in clean energy jobs has happened in the last decade. Job creation is a major concern in any transition to a sustainable economy.2

Those who are serious about getting to a true–cost economy should help accelerate the renewable energy revolution as a way to achieve it.

 

Notes

  1. See The Great Transition by Lester Brown and colleagues at the Earth Policy Institute for a superb account of the global renewable energy revolution that offers hope to all.
  1. See Energiewende for the job figures; see also Peter Victor in Tim Jackson’s Prosperity Without Growth for a discussion of transition scenarios and jobs.

The End of the Age of Extraction

by Brent Blackwelder

BlackwelderToday’s global economy is causing shortages of natural resources (both renewable and nonrenewable) as we come to the end of what might be called the Age of Extraction. A true cost, steady state economy, on the other hand, would prevent resource problems by maintaining population and resource consumption well within the carrying capacity of the planet.

Energy and mineral shortages, along with depletion of forests and fisheries, are driving the extractors and harvesters to evermore remote places. No longer able to find gushing oilfields, vast stands of virgin timber, or waterways teeming with fish, the extraction companies are racing to the farthest reaches of the planet in search of profits.

The end of the Age of Extraction does not mean that such resources will disappear. In his recent book, The Quest, Daniel Yergin describes oil and gas discoveries that he predicts will turn the Western Hemisphere — from Canada to Brazil — into the next Saudi Arabia. But today’s extraction is pursuing fuels that are either dirty or hard to get. We see more pollution, both from accidents and mundane chronic causes, increasingly pushing civilization beyond the carrying capacity of the earth, wiping out more and more species, and accelerating climate destabilization.

Today’s global economic operating system tolerates and even abets severe pollution damages as industries externalize the costs from their books. Scarcity has made some of the most environmentally devastating energy and mining projects “short-term cost effective.” For example, according to price and revenue figures, it’s cost effective to extract oil from tar sands in Alberta, a process that requires huge energy inputs, grotesquely contaminates land and water, and poisons people, fish, and wildlife.

A surge of fracking to reach natural gas deposits more than a mile underground has attracted drillers in a manner reminiscent of the California Gold Rush days. Fracking, along with very deep offshore oil drilling, illustrates the contamination that is occurring from energy extraction in numerous locations. Shell oil company is preparing to drill in the Arctic Ocean where little if any emergency relief will be available to contain a spill.

Overfishing during the Age of Extraction (photo taken in 1983) has pushed the goliath grouper to the edge of extinction.

Overfishing during the Age of Extraction (photo taken in 1983) has pushed the goliath grouper to the edge of extinction.

Along the world’s coastlines overfishing has depleted stocks. Some near inshore “fisheries” have actually become fishless. Recent analyses of the history of fishing off the California coast, as seen through interviews with three generations of fishermen, produced startling findings. The youngest group (age 15-30) had no idea that it was once common to fish right off the coast. They didn’t view the coastal zone as being overfished because, they said, there were no fish in this zone (see p. 140 of Climate Wars by Harald Welzer).

The oldest group (age 55 and above) could recall eleven species that had disappeared from today’s far offshore fishing ground, whereas the group between age 31 and 54 could recall seven, and the youngest group only two. Sixty years ago the oldest group could recall catching 25 goliath groupers per day, but by the 1960s the number had plunged to eleven, and then to only one a day in the 1990s. Tragically, only ten percent of the youngest group believed that stocks of the grouper had disappeared because they didn’t think they were ever there to begin with.

Today this experience is being repeated on a massive scale as ocean trawlers are “vacuum cleaning” the oceans as they seek scarce schools of fish. A strong potential exists to push fish and other renewable resources beyond the point of recovery.

The world economy has been unable to reverse the depletion trend. Without a true cost, sustainable economy, nations are faced with three choices. They can:

  1. reject concerns about shortages and environmental decline and proceed for a few more decades with expanded drilling, mining, and harvesting;
  2. acknowledge the problem and adopt policies that lead to sustainable resource use and reliance on renewable energy; or
  3. treat the situation like a wartime crisis as President Franklin Roosevelt did in World War II when practically overnight he forced Detroit to shift from making cars to manufacturing ships and airplanes.

High-tech operatives try to assuage public concern with the claim that geoengineering on a gargantuan scale can enable the oceans to absorb more carbon and produce more cloud cover to prevent planetary overheating. For those nations that can’t get a robust program going on such easy technologies as wind and solar energy, the claim for geoengineering as a savior from climate disruption seems a tad on the ambitious side.

After the transition to a true cost, sustainable economy, the extractive projects I have described would be a curious relic. The global economy would be seen as a subset of Spaceship Earth. Survival on board the spaceship depends on using sufficient supplies (not ever increasing supplies) of resources, as well as consumption rates that are commensurate with regeneration rates.

Too many world leaders are focused on restoring an economy that has been undermining the life-support systems of Spaceship Earth. A different kind of economy — a true cost economy — is needed to take us forward at the end of the Age of Extraction.

What Kind of Example Is Canada Setting?

by Brent Blackwelder

BlackwelderIs any nation on Earth taking seriously the need for a true-cost economy, where we live sustainably in a steady state? I have been working with Randy Hayes, founder of the Rainforest Action Network and executive director of Foundation Earth, on a report card to determine if Canada might be such a nation. The report card reveals whether Canada is setting the example for how to run a country sustainably in the 21st century, or following the path of maximal exploitation of natural resources (the path followed by most nations and urged by the World Bank, IMF, WTO, and growth-obsessed economists).

We chose to examine Canada in part because of its history of compassion and global concern. Canada also has abundant natural ecosystems, lots of land and fresh water, and a relatively small population. This combination of assets puts Canadians in a better position than most to set policies for achieving a sustainable economy.

The report card, scheduled for release in June by Foundation Earth, grades the administration of Prime Minister Stephen Harper, as well as the provinces of Alberta and British Columbia, on key actions and policies in economics, ecology, and equity. It will present grades in sixteen categories.

Canada has the potential to achieve high marks across all categories (in fact, the report card highlights initiatives around the world that show what can be done to earn high grades). But much to our chagrin, we found that instead of taking actions to enhance the health of people and the planet, Canada has been reverting to the crass and outdated ways of cowboy economics: “exploit now, answer questions later.” The Harper administration receives failing grades in most of the sixteen categories, while Alberta and British Columbia do only slightly better. Although Vancouver, Toronto, and other locales have undertaken a number of sustainable economic initiatives, the Harper administration is promoting overly exploitative projects in most areas.

Given the collapse of leadership in the U.S. on innovative ecological and economic policy, Canada could have emerged as a worldwide leader on the shift to clean energy. The nation could have rejected mega-extraction projects that pollute the air and water and damage or destroy forests, grasslands, rivers, lakes, mountains, and valleys.

Instead, Canada is following the U.S.’s lead and dropping the ball. For example, Harper could have extended British Columbia’s carbon tax law of 2008 to the rest of the country. Sweden adopted a carbon tax in 1991 with good results. Harper could have pushed for extensive solar energy in Alberta and Saskatchewan where cities such as Edmonton, Calgary, and Regina have equal or better solar potential than Rome, Italy. Germany and Denmark have shown that northern nations can lead the way on solar, wind, and other renewable energy sources.

To get a sense of the grades we’re compiling in the report card, here’s a rundown of four categories:

1. Climate Disruption and Pollution

On climate policies, Canada is ranked 58th out of 61 nations that the European Climate Action Network analyzed. Only Saudi Arabia, Iran, and Kazakhstan ranked worse. This woeful ranking stems from projects like the Enbridge pipeline. Harper has pushed for this pipeline project that would carry tar sands oil across British Columbia to the port of Kitimat where supertankers would attempt to navigate difficult channels (and jeopardize the province’s magnificent northern coastline).

By removing protections from 99% of Canada’s natural water bodies, Harper has left 30,000 lakes and rivers vulnerable to corporate pollution. The Prime Minister has also sought to weaken water pollution standards and given permission to use more lakes as dumpsites.

2. Women’s Rights

When it comes to empowerment of women, Canada under Harper has fallen three places in the Global Gender Gap Index and now ranks 21st. Harper cut funding for the Status of Women department by 38% and closed twelve of its sixteen regional offices.

3. Rights of Indigenous People

In January 2006, Harper cancelled the Kelowna Accord, a historic agreement to clean up pollution that is poisoning First Nation people. The Harper government, along with some provincial governments, has systematically failed to respect indigenous rights and has cheered energy projects that severely impact the health of native people, their lands, and their waters.

4. Science-Based Decision Making

Reminiscent of an Orwellian state, Harper’s administration has eliminated scientific programs and refused to regard scientific findings on toxic contamination and the health of forests, fisheries, and oceans. Harper has led an outright assault on environmental groups, allocating millions to the charitable tax agency harassing these organizations.

Key institutions carrying out scientific work on the health of the Earth have been gutted and even shuttered, including the Polar Environment Atmospheric Research Laboratory in the High Arctic, the Experimental Lakes Area (an extraordinary 58-lake research venue in western Ontario), the national program on contaminants in marine mammals, and the Department of Fisheries and Oceans.

All scientific research in the National Parks has been terminated, and Environment Canada has cancelled its work on climate adaptation by laying off all eighteen scientists in the program. Top experts on ocean pollutants, marine mammals, contaminants in the St. Lawrence River, toxic flame retardants, and endocrine disruptors in fish have been dismissed.

The report card on Canada under the Harper administration will inform people of these disgraceful changes. Canada is moving farther and farther from a sustainable economy and is now a record-setting polluter where the gap between rich and poor is widening; where women, First Nations, and conservationists are under major attack; and where energy and mining companies are given a blank check to pillage the nation and the planet.

Many have tried to influence Harper to do what’s best for the environment and the economy over the long run. If the saying is true that, “You can lead a horse to water, but you can’t make it drink,” then maybe it’s time to put Harper out to political pasture. Although with the policies he’s been supporting, he might have a tough time finding drinkable water in that pasture.

What Kind of Economy Says OK to Tar Sands Oil?

by Brent Blackwelder

BlackwelderOn Sunday, February 17, I marched in the largest climate change protest in U.S. history. About 35,000 people gathered on the Washington Monument grounds for a rally and then marched past the White House, calling on President Obama to deny permission for the construction of the Keystone XL pipeline that would transport oil from Canada’s tar sands through the heart of the U.S. to the Gulf Coast.

Two of the victims of tar sands development in Alberta, Chief Jackie Thomas of the Saik’uz First Nation and Crystal Lameman of the Beaver Lake Cree First Nation, spoke of the contamination of their lands and people. Even without the pipeline, the gigantic oil extraction operation is already causing plenty of harm.

If carried to completion during the next several decades, over the objections of the indigenous people who have been stewards of this land, tar sands mining will have transformed an area the size of Florida or Wisconsin. A land teeming with fish and wildlife will have been turned into a grotesque zone of toxicity where the lakes will act as predators as they entice unsuspecting waterfowl to land in their polluted waters.

What kind of economy would find such an activity acceptable? At the very least, the economy must be making some perverse calculations to justify such devastation.

As if the direct devastation of the land and water were not enough, the utilization of tar sands oil by the U.S. and other countries means “game over” for the global climate, according to NASA scientist James Hansen. In other words, the energy-intensive extraction followed by the burning of tar sands oil will put so much carbon pollution into the atmosphere that we will enter an era of radical climate destabilization.

The exploitation is proceeding on Cree lands against their consent and in violation of the Canadian Constitution. It represents a blatant refusal to abide by Article 32 of the U.N. Declaration on the Rights of Indigenous Peoples that says: “States shall consult and cooperate in good faith with the indigenous peoples… in order to obtain their free and informed consent prior to the approval of any project affecting their lands particularly in connection with the development, utilization or exploitation of mineral, water or other resources.”

President Obama appears poised to give permission to build the pipeline and contribute to this industrial nightmare. So what can we do in the aftermath of the big protest?

The time has come to reject the premises of today’s economy, because it is not a true-cost economy, and it undermines good governance. It is an economy set up for cheaters and gamblers. It is also an economy that exploits those lacking political clout and that disrespects international law, except when it comes to trade agreements that enable polluters to enter special secret courts (see the Chevron trade case against Ecuador for one recent example).

A true-cost, sustainable economy would not countenance commercial activities like tar sands mining that are tantamount to an all-out war against the natural environment and a form of industrial genocide. The genocide is underway not because of racial hatred, but because tribal people have stood in the way of a major money-making venture. Furthermore, the indigenous people lacked political power to stop the transnational corporations from ruining their lands.

Protests of the Keystone XL pipeline should blossom into protests of our unsustainable economy.

Protests of the Keystone XL pipeline should blossom into protests of our unsustainable economy.

A true-cost economy would exemplify resilience. It would be less susceptible to disruptions from speculation, violent weather events, and terrorism. Such an economy would not pursue activities that generate or are likely to generate irreversible pollution. No one has to worry about a “solar spill” or a “wind spill” ruining their drinking water.

Today’s economy, on the other hand, is permitting all sorts of damaging activities that violate the criterion of reversibility and bequeath a legacy of poison. Consider the contrast between renewable energy projects and coal mining.

If a wind farm or solar rooftop array is causing problems, it can easily be removed without leaving centuries of pollution behind. The roof or the land can be returned to other uses. In fact, wind farms are fully compatible with agricultural production around the wind turbines. One wind farm I visited near Dodge City, Kansas, consisted of 150 turbines in a 20-square-mile area, and the land requirements were just seven acres.

In contrast, coal mining in West Virginia through mountain-top removal is converting biologically diverse, forested mountains into a Martian landscape. In the words of former Congressman Ken Heckler, reclamation amounts to “putting lipstick on a corpse.” Such mining projects violate the principle of reversibility, just like tar sands oil extraction. What will be available to people in the future who want to live in and explore places like West Virginia’s formerly bountiful mountains and valleys?

Whenever concerns are raised over the destructive impacts of big extractive projects, the predicament of joblessness always comes up. But joblessness cannot be solved with the current economic strategy that allows temporary construction jobs to destroy permanent jobs and livelihoods. Big extraction projects cannot create the volume of jobs that can be had by pursuing renewable energy. In fact, the oil industry generates the fewest jobs of almost any industry in the federal government’s database.

It is time to start demanding a true-cost economy that will create diverse jobs without creating no-go zones of carcinogenic and mutagenic wastes.

Climate Change Trumps Terrorism as Threat to National Security

by Brent Blackwelder

Climate destabilization eclipses all other security threats to human civilization except for a major nuclear war. But the current global economy gives no signals to investors and consumers about the profound implications of climate destabilization on water cycles, agriculture, and humanity’s ability to grow food for seven billion people.

The latest weather disaster, the monster Hurricane Sandy, demonstrated that changing environmental conditions pose a huge threat to U.S. security and stability. In the aftermath of the storm, thousands of people in New York and New Jersey face grim conditions, with $50 billion in damages, over 20,000 homeless, and some dying of hypothermia.

The American public, however, has been conditioned to think of national security in terms of terrorist threats. The Washington Post’s veteran Pentagon reporter Greg Jaffe makes the case that the world has never been safer, if security is to be measured by acts of human sabotage and terrorism. Jaffe asserts that according to “most relevant statistics, the United States — and the world — have never been safer… global terrorism has barely touched most Americans in the decade since Sept. 11, 2001.”

Jaffe appropriately criticizes presidential candidates and other politicians for exaggerating the national security threat from terrorism because they want to “cast themselves as potential saviors in an increasingly dangerous world.” During this time, he notes, more U.S. citizens have been crushed to death by furniture and televisions falling on them than have been killed in terrorist attacks (Washington Post 11/4/12).

Despite the way politicians are talking about national security, the reality is that over the past twenty years, national security has become more closely tied to environmental factors such as energy, water, food, and climate disruption. President Clinton’s State Department made the formal acknowledgment that deteriorating environmental conditions can cause conflicts and constitute threats to stability.

Hurricane Sandy comes ashore.

Rampaging global weather disasters pose serious challenges to governments around the world. According to Swiss Re, the world’s largest reinsurance company, twenty to forty percent of losses from disasters are uninsured. The company says economic losses from climate-related disasters are substantial and rising. One news release states, “Over the last 40 years global insured losses from climate-related disasters have jumped from an annual USD 5 billion to approximately USD 60 billion.” Another news release says that “without further investments in adaptation, climate risks could cost nations up to 19% of their GDP by 2030, with developing countries the most vulnerable.”

To address the root causes we must move from our current global system of cheater economics and casino economics to a true-cost economy. In a true-cost sustainable economy, the climate-disrupting effects of coal and oil would be factored into their prices, and prices would rise beyond most people’s idea of affordability. Ironically, the current method for calculating national economic well-being (GDP), counts the billions spent on fixing storm damages as a plus.

In the presidential debates Romney and Obama competed to see who could be more supportive of oil and gas and who would accelerate the movement of tar sands oil from Canada the fastest. It was as if they were saying, “Let’s see who can generate the most greenhouse gases the fastest and create even more gigantic storms and weather disruptions.”

The extraction of tar sands oil is devastating the homes of native people in Canada and creating a wasteland scene reminiscent of Dante’s Inferno. Utilization of such a filthy fuel on the scale now being advocated means “game over for the climate,” according to NASA climate scientist James Hansen.

At least the victorious President Obama stressed that he wanted more renewable energy, whereas Romney opposed wind power, belittled concerns about climate destabilization, and joked about rising sea levels. Now is the time to demand that Obama fulfills the clean-energy promise he made in his first term. Along the way, we might even alleviate some threats to national security that are already on our shores.

The Resilience Imperative and Civil Disobedience

by Michael Lewis

As I was making a speech in Alberta, Canada, to a business audience, mainly from the finance and energy industries, a fully engaged participant in the front row caught my eye. He was the first to approach me after the question period and the first to get my autograph on The Resilience Imperative: Cooperative Transitions to a Steady-State Economy, the book that I co-authored with Pat Conaty.

During my talk, I had argued that economic growth and a casino-like financial system were taking us to the edge of a deadly precipice. I made the case that societies urgently need to navigate the turn to a steady-state economy, based on local and regional trade. I also offered suggestions on how we might accomplish this. The thesis has a bit of an edge to it, especially in a business crowd accustomed to globalization and growth, so I was anxious to learn more about the front-row enthusiast.

He turned out to be a warm, charming, and open senior manager at Cenovus Energy, a large player in the Athabasca Tar Sands. The corporation seems to be respected in Alberta and Saskatchewan because of its health and safety, community, and environmental initiatives. He rapidly brought the discussion to the issue of “social license,” a condition he acknowledged was a big problem for the tar sands operators. But his view, after many years around boardroom tables, is that the industry is becoming more transparent and responsible, and its performance is improving.

I believe this to be true; certainly Cenovus has been doing a lot of things right. However, I argued that he was missing the point; social license in this industry could only be understood in a global context, and it is not going to be forthcoming for two simple reasons: (1) economic growth produces carbon and (2) carbon is going to kill a lot of us and thousands of other creatures.

If the oil and gas sector wants to explore the potential for broadening its social license, it would have to stand shoulder to shoulder with scientists, governments, businesses, and civil society and argue for a stiff tax on carbon. Only by taking such responsibility can Cenovus and its fellow corporations expand their social license. At the same time they would be helping to set the stage for the transition to a steady-state economy.

“Nothing less would do,” I proclaimed.

“Well you know, Mike,” he replied, “I have not seen much evidence of such a move afoot.”

Why am I not surprised? “I know,” I said. “Shareholder interests are framed by the ideology of growth and profit maximization, and even when these interests are complemented by an ethic of corporate social responsibility, the ideology does not exactly encourage this vital and necessary conversation.”

A few days later I attended the launch conference of the New Economics Institute at Bard College in Upstate New York. It was a remarkable convergence of practitioners, researchers, and activists engaged in debates about economics, analysis of mindboggling challenges (both local and planetary in scale), and exploration of hopeful transformational pathways.

Bill McKibben delivered a Friday evening keynote speech to a packed audience. His laser focus on greenhouse gas emissions was at once absorbing, terrifying, and hopeful, precisely the kind of dynamic that is motivating more and more people to step up to the front lines of civil disobedience, including many scientists and even a few economists. Mark Jaccard, a well-known energy economist in Vancouver, is hardly considered to be a radical, but he joined the front-line battle as part of a 350.org action. He was arrested in May of this year for blocking a coal train headed north to Vancouver’s coal port.

McKibben and Jaccard are picking up on the analysis of James Hansen et al. that oil and gas are a problem, but we do not have enough of it left to take us over 450 parts per million of carbon dioxide in the atmosphere. Coal is the real threat. Unless we phase out coal completely by 2050, we will blast beyond this concentration, and that’s an event that many climate scientists believe will trigger catastrophic consequences. What are we to do?

McKibben and Jaccard are showing us part of the answer. But to make real progress, we need to pay much more attention to Herman Daly, the outstanding chronicler of our economic and ecological lunacy. He concluded one recent essay with this strident statement befitting of our circumstances:

Even though the benefits of further growth are now less than the costs, our decision-making elites have figured out how to keep the dwindling extra benefits for themselves, while “sharing” the exploding extra costs with the poor, the future, and other species. The elite-owned media, the corporate-funded think tanks, the kept economists of high academia, and the World Bank — not to mention Gold Sacks and Wall Street — all sing hymns to growth in perfect unison, and bamboozle average citizens.

Dr. Daly has clarified and expanded the arguments for a steady-state economy that go back to John Stuart Mill, John Ruskin, Frederick Soddy, Kenneth Boulding, and Ghandi. In the same essay referenced above, Daly also noted that in spite of all the evidence of the growing crisis, “our economists, bankers, and politicians still have unrealistic expectations about growth. Like the losing gambler they try to get even by betting double or nothing on more growth.”

Well then, perhaps we need to follow the leads of McKibben, Jaccard, and Hansen, and go get arrested. Perhaps we need to breathe deeply and act courageously to make hope more concrete and despair less convincing. Perhaps those of us in the 50 to 90-year-old set need to commit to civil disobedience to honor our children, grandchildren and our hopes for their survival. The time has arrived for all of us, but especially the post-war “growth generation” to break out of our too comfortable zones. Stopping carbon emissions is a pre-condition, but nothing will change unless we are prepared to put ourselves on the line.

Of course, this is not enough. We have many questions to answer. How are we going to meet basic needs for energy, food, and shelter? How are we going to finance the economic transition? How do we restructure property rights to overcome the pervasive me-first culture? How do we achieve more local and democratic ownership of the means of production? How do we share jobs and income in a transition that will require less stuff and thus less making of stuff?

These are the questions we concentrate on in The Resilience Imperative. Pat Conaty and I put 42 months of serious forehead pressing into the book, and the early results are gratifying. People as divergent as John Fullerton, former managing director of JP Morgan whose focus is now on resilience and transition (good-bye Wall Street), and Robin Murray from the London School of Economics have endorsed it — they believe we have presented hopeful ideas for getting the transition going.

After presenting numerous positive examples of how people are changing the economy today, we end the book on this note:

The tasks of transition are many. The challenges are daunting. The outcomes are uncertain. Our courage remains untested. But we are a resilient species. We are not alone; there is “blessed unrest” all about. If we but open our eyes, we will SEE change is possible. If we act in ways that recognize we are interdependent, we will continue to innovate cooperative transitions to a steady-state economy.

There is one key question we need to ask ourselves. What stories will we be able to tell our loved ones about what we did to advance the Great Transition?

There’s Hope for a New Economy in the New Year

by Brent Blackwelder

Early in 2011 UN Secretary General Ban Ki-Moon issued a profound condemnation of the global economy’s ill-conceived pattern of growth: “For most of the past century, economic growth was fueled by what seemed to be a certain truth: the abundance of natural resources. We mined our way to growth. We burned our way to prosperity. We believed in consumption without consequences. These days are gone… Over time, that model is a recipe for national disaster. It is a global suicide pact.” (Spoken at the World Economic Forum in Davos, Switzerland, January 2011).

That’s a somber statement, but there’s hope that the U.S. will break free from this “global suicide pact” and develop a fundamentally different economy.  My prediction for 2012:  decentralized forces, formed in response to the unsustainable and unfair economic situation, will begin to fundamentally change how our national economy works. People in the Occupy Wall Street movement and groups working on human rights, public health, clean energy, and social and tax justice are laying the groundwork for a shift to a steady state — a dynamic and sustainable economy that pursues prosperity and full employment without GDP growth.

The grassroots mobilization to support clean energy and a healthy environment is a sign of the shift to come. The work of diverse groups protesting the dirty tar sands pipeline from Canada to Texas motivated a huge turnout at the White House, with over 1,000 people being arrested. These protests were strong enough to get President Obama’s attention.  He delayed a decision on the pipeline and elevated the issue to center stage on the Republican agenda.

Statistics give us another hint that we’re headed in the right direction toward a steady state economy in 2012. Despite efforts by the Republican Congressional Leadership to undermine environmental protections (e.g., ongoing denial of climate change and attempts to gut EPA regulations), U.S. emissions have dropped by 7% in the last four years and are in line to drop further. Vehicle miles driven have declined, and ridership of public transportation is up 2%.

A cynic might say that the reason is simply the recession, but that’s only a small part of the story. Important actions such as renewable energy standards at the city and state levels are helping. Religious congregations participating in the Interfaith Power and Light initiative are reducing their carbon footprints. The campaign to shut down coal power plants and the substitution of natural gas for coal are also significant. Coal used to be the source of over half of U.S. electricity, but its share dropped to 43% in the first half of 2011 and is scheduled to drop even further.

As we enter 2012, we should redouble our support of those groups pushing for an economic paradigm shift based on sound governance and the principles of a just democracy. And it’s time to build a broad coalition of such groups to include those working on clean energy, public health, climate stabilization, financial reform, and other pieces of a sustainable economic system. Growing support for these groups and mutual reinforcement among them will provide the necessary spark to ignite the economic shift.

As we push for a just, environmentally sustainable world, we must continue to highlight the unabashed attempts by the richest one percent to continue fleecing the rest of us. December has featured a full array of proposed new financial gimmicks and tax breaks to benefit the very rich. For example, corporations with billions stashed in offshore tax havens are now seeking to bring these funds back to the U.S. with minimal tax under a so-called “Repatriation Act.”  They’re angling for a repeat of their lucrative repatriation flim-flam in 2004, a plan that saw 15 corporations bring back $150 billion at a 5 and ¼% tax rate instead of 35%. The Senate Permanent Subcommittee on Investigations found that these 15 companies did not add jobs or increase research expenditures, but rather increased spending on executive pay and stock buybacks. Now more companies are petitioning Congress to allow them once again to bring the loot back home with the same tax break.

Although the U.S. Chamber of Commerce strongly supports such repatriation, the Women’s Chamber of Commerce, with 500,000 dues-paying members, opposes it. The members of the Women’s Chamber of Commerce aren’t benefiting from the offshore tax havens or the repatriation scams.

As 2011 gives way to 2012, outrage is in the air.  But that can be useful for uniting and motivating people of conscience across the political spectrum to work for change — to break free of the suicide pact described by Ban Ki-Moon. Mr. Ban has called on governments to supply “visionary recommendations” for the upcoming Rio+20 UN Conference on Sustainable Development in June of 2012. Here are two recommendations that, at this point in history, seem obvious, but would certainly be radical in the business-as-usual economy:

  1. Stop pursuing the ruinous pipe dream of continuous economic growth and work toward a steady state economy.
  2. Take power back from the oligarchy of the 1% to reclaim our democracy.

Best wishes for the new year.

Ten Turkeys for Thanksgiving

by Brent Blackwelder

This Thanksgiving is a good time to spot the Golden Fleece Turkey, a bird that epitomizes economic irrationality and environmental destruction. This remarkable breed pollutes air and water and wastes tax dollars, while scamming the public in the process. Although known for its camouflage, especially its ability to hide wrongdoing, the Golden Fleece Turkey regularly treats birdwatchers to astonishing displays of stupidity. Such birds could not exist in a sustainable economy, but the present economic climate provides an ideal habitat, and they’re spreading like many other invasive species.  Below are 10 recent sightings of the Golden Fleece Turkey.

(Note: Wisconsin Senator William Proxmire presented Golden Fleece Awards in the 1970s and 1980s for taxpayer boondoggles.  This Daly News entry is dedicated to his memory.)

1. Animal Factory Slums

Sometimes masquerading under the name of Confined Animal Feeding Operations (CAFOs), these gigantic lots keep thousands of animals in filthy, cramped quarters. They produce over 500 million tons of manure annually, some of which spills because lagoons leak and pipelines break. The spills cause massive fish kills downstream and spread dangerous bacterial contamination. Up to 70% of the antibiotics in the US are used on animals in CAFOs, thereby aggravating antibiotic resistance and jeopardizing one of the miracles of modern medicine. Emissions from these animal slums, tainted with putrid sulfur dioxide, sicken rural neighbors.  “Cheap” food from CAFOs isn’t such a bargain when you add up all the health costs.

2. Continued Subsidies for Nuclear Reactors

In the wake of the Fukushima disaster in Japan (a tragedy that’s still unfolding with more bad news each month), there is a real possibility that damages could top a trillion dollars. Despite such concerns, the nuclear industry keeps fleecing America. The US Congress and the Obama Administration continue to support loan guarantees for new nuclear reactors and to provide liability insurance for nuclear reactor accidents. If reactors are as safe as the industry alleges, one would think that private insurance companies would be eager to make some money here. As we have seen from Japan this year, there is a lot we are not being told, and there’s still a high potential for accidents.

3. The Keystone XL Tar Sands Pipeline from Canada to the Texas Gulf

The extraction of oil from tar sands takes a lot of energy and leaves behind a polluted landscape that native people of Alberta have to live with. The pipeline would pose a threat to every river it crossed en route to the Texas coast. Embarrassed by revelations of shady dealings at the State Department and the announcement of an Inspector General investigation, the Obama Administration has just delayed a decision on whether to approve the biggest pipeline fleece in history.

4. US Automobiles That Travel 200 Miles Per Hour

Ford and Chevrolet have announced their intentions to produce super-fast cars, capable of speeds between 180 and 200 mph. So much for the goals of saving lives, preventing injuries, and conserving fuel. For the past half century 30-50,000 people have died annually in auto accidents, and hundreds of thousands more have been injured.

5. Offshore Tax Havens

It is estimated that the US Treasury loses $100 billion annually as a result of offshore tax havens. This is about the same amount of money the desperate “Supercommittee” of Congress is scrambling to find for deficit reduction by the November 23 deadline ($1.2 trillion over a decade = $120 billion a year). The two biggest bank recipients of taxpayer bailouts are Citicorp and Bank of America. Citicorp operates subsidiaries in 427 tax havens, and Bank of America does so in 115.

6. Tax-Dodging Corporations

Corporate income taxes provided 35% of federal revenue in 1945, but today that total is just 9%. Some of the world’s best known and most profitable companies (e.g., General Electric) play a variety of accounting games and avoid paying any corporate income taxes. Such companies protest that they are obeying the law, but they don’t say that they are lobbying intensively to keep all the loopholes in place. As a result, the American public is told that it will have to endure massive budget cuts to avoid further increases in government debt.

7. Corn Ethanol Subsidies

75 cents of every tax dollar spent on renewable energy goes to corn ethanol. US taxpayers are shelling out over $6 billion in subsidies each year for the corn ethanol program. Corn is an energy-intensive crop to grow, and it often involves the use of the carcinogenous herbicide atrazine (banned by Italy and Germany in 1990). The Volumetric Ethanol Excise Tax Credit is a shameful subsidy (45 cents per gallon blended) that should be cut. On top of that, life-cycle studies show that corn ethanol fails to ameliorate greenhouse gas emissions.

8. Clean Development Mechanism (CDM)

The United Nations administers the world’s largest carbon offset program, the CDM, created by the Kyoto climate agreement. The objective is to provide credits to projects that offset greenhouse gas emissions. The idea is to develop useful projects that would not be built without such a subsidy. But there’s a problem: the UN is awarding credits worth billions to projects that are already built or being built — large, environmentally unsound dams provide perhaps the most egregious example. The Clean Development Mechanism is better labeled the Filthy Scam Mechanism. As of October almost 2,000 dams (2/3 in China) were in line for billions in tax credits with no guarantee of compliance with standards of the World Commission on Dams.

9. Leaf Blowers

Doesn’t anyone rake leaves anymore or sweep a sidewalk? Throughout the year, leaf blowers spew dust, debris, and noise in neighborhoods all across America. Of the 220 million tons of carbon dioxide emitted by off-road vehicles and equipment, power lawn mowers and leaf blowers generate a surprisingly large amount — 12% or 26 million tons. Often powered by dirty engines, these leaf blowers can be a serious source of air pollution. And with unpleasant noise, sometimes exceeding 85 decibels, they can make sitting on the porch seem like sitting at the end of an airport runway.

10. Corporate CEO Pay

CEO salaries are now a whopping 325 times higher than the average US worker.  And the Institute for Policy Studies found 25 companies that paid their CEOs more than they paid in federal income tax.

Decent citizens everywhere should be looking to carve up a Golden Fleece Turkey or two. Happy Thanksgiving!