G7 leaders fiddle while Earth burns

The G7 governments saying they will phase out fossil fuels by 2100 isn’t closing the barn door after the horse has left. It is declaring an intention to consider closing the barn door after waiting for the horse to disappear over the horizon. It is okay to be feel underwhelmed by this.

The Group of 7 summit held earlier this month in Germany, representing seven of the world’s largest economies, ended with a declaration that these governments would commit themselves to a 40 to 70 percent reduction in greenhouse-gas emissions and a complete phaseout in 2100, and an invitation for “all countries to join us in this endeavor.” A communiqué issued after the summit declared:

“We commit to doing our part to achieve a low-carbon global economy in the long-term including developing and deploying innovative technologies striving for a transformation of the energy sectors by 2050. … To this end we also commit to develop long-term national low-carbon strategies.” [page 17]

The G7 governments say they are acting under the impetus of last year’s Intergovernmental Panel on Climate Change report and in anticipation of next December’s Climate Change Conference in Paris. In the conception of the IPCC report, greenhouse-gas emissions should be 40 to 70 percent lower globally in 2050 than in 2010 and “near zero” in 2100 to achieve a goal of holding greenhouse-gas concentrations in the atmosphere to 450 parts per million in 2100. Even that level is a substantial increase above the current level of 404 parts per million, at which the Earth’s climate is already undergoing dramatic changes.

Retreating glacier in Greenland (photo by Bastique)

Retreating glacier in Greenland (photo by Bastique)

The IPCC report, prepared by scientists from around the world but apparently watered down by the world’s governments, promises that mitigating global warming will be virtually cost-free and require no fundamental change to the world’s economic structure. Alas, there are no free lunches — the IPCC report’s insistence that techno-fixes will magically take care of carbon buildup, allowing humanity to continue the path it has been on since the dawn of the Industrial Revolution, is dangerously unrealistic.

So what do the G7 governments have in mind? Their communiqué says they will increase the number of people in developing countries who have access to insurance, increase developing countries’ access to renewable energy and raise funds “from private investors, development finance institutions and multilateral development banks.” [pages 15-16] Try to contain your excitement when you read the G7 prescription for combating global warming:

“We will continue our efforts to provide and mobilize increased finance, from public and private sources. … We recognize the potential of multilateral development banks in delivering climate finance and helping countries transition to low carbon economies.” [page 15]

It may already be too late

Before we delve into the idea that the World Bank, funder of gigantic greenhouse-gas belching, polluting projects around the world, is the cure for global warming, and before we contemplate the idea that we can bind the policies of governments eight decades in the future, let us ask what actually needs to be done to prevent the climate from spiraling into a feedback loop that will accelerate species die-offs and dangerously disrupt agriculture and water supplies. The U.S. government’s climate agency, the National Oceanic and Atmospheric Administration, issued a study in 2009 that flatly concluded “there’s no going back.” The study, led by NOAA senior scientist Susan Solomon, found:

“[C]hanges in surface temperature, rainfall, and sea level are largely irreversible for more than 1,000 years after carbon dioxide (CO2) emissions are completely stopped. … ‘It has long been known that some of the carbon dioxide emitted by human activities stays in the atmosphere for thousands of years,” Solomon said. “But the new study advances the understanding of how this affects the climate system.’ ”

Carbon dioxide thrown into the air stays in the atmosphere for a long time, warming oceans will retain added heat and transfer that back to the atmosphere, and we have yet to experience the full effect of greenhouse gases that have already been emitted. Global sea-level rises and major disruption to rain patterns will effect billions of people. The NOAA study said:

“If CO2 is allowed to peak at 450-600 parts per million, the results would include persistent decreases in dry-season rainfall that are comparable to the 1930s North American Dust Bowl in zones including southern Europe, northern Africa, southwestern North America, southern Africa and western Australia.

The study notes that decreases in rainfall that last not just for a few decades but over centuries are expected to have a range of impacts that differ by region. Such regional impacts include decreasing human water supplies, increased fire frequency, ecosystem change and expanded deserts. Dry-season wheat and maize agriculture in regions of rain-fed farming, such as Africa, would also be affected.”

A Massachusetts Institute of Technology paper, lamenting the widespread conviction that global warming can be reversed quickly when and if it is decided to do so, notes such beliefs are in violation of basic physics. The paper’s abstract says:

“[W]ait-and-see policies erroneously presume climate change can be reversed quickly should harm become evident, underestimating substantial delays in the climate’s response to anthropogenic forcing. … [Greenhouse-gas] emissions are now about twice the rate of GHG removal from the atmosphere. GHG concentrations will therefore continue to rise even if emissions fall, stabilizing only when emissions equal removal. In contrast, results show most subjects [of an MIT study] believe atmospheric GHG concentrations can be stabilized while emissions into the atmosphere continuously exceed the removal of GHGs from it. These beliefs—analogous to arguing a bathtub filled faster than it drains will never overflow—support wait-and-see policies but violate conservation of matter.”

More heating even if we stopped today

A commentary published on RealClimate, a Web site published by working climate scientists, calculates that if greenhouse-gas concentrations were kept constant at today’s level, there would still be an increase in global temperatures of as much as 0.8 degrees Celsius — combined with the global warming already experienced, that is close to the 2-degree overall rise widely believed to be the outer limit to avoid catastrophic damage to Earth’s ecosystem. But to achieve even that equilibrium requires immediate, significant cuts to greenhouse-gas emissions. The commentary says:

“[C]onstant concentrations of CO2 imply a change in emissions — specifically an immediate cut of around 60 to 70% globally and continued further cuts over time.”

“Immediate” as in now, not decades in the future. The actual proposed cuts, in the near term, are far less than that range, and less than initially meets the eye. The baseline of measurement is being shifted, for example, so that the benchmark against which the reductions are measured are higher than previously set. Environmental Defence Canada calculates that the Harper government’s switch to using 2005 rather than 1990 as the baseline reduces the goal by more than half. In a report, the group writes:

“The U.N. Framework Convention on Climate Change (1992) and the Kyoto Protocol (1997) both used 1990 as the reference or base year. Most countries still use 1990 as the base year but some have started using more recent base years. Since the Copenhagen summit in 2009, Canada has been using 2005 as a base year. This makes comparison between targets more difficult. It also makes targets look stronger than they are since Canada’s carbon pollution increased significantly between 1990 and 2005. For example, the Canadian government’s pledge to reduce emissions by 30 per cent below 2005 by 2030 is actually less than half as strong … when expressed using 1990 as the base year.” [page 3]

Emissions from the Alberta tar sands have increased almost 80 percent since 2005 and the Harper government has every intention of boosting tar sands production as much as possible, including plans for multiple pipelines, while equating environmentalists with terrorists. Environmental Defence Canada notes that the Harper government has no intention of regulating tar sands oil and flatly declares Canada’s post-2020 target “the weakest in the G7 to date.”

The potential global warming just from the Alberta tar sands is so large that the U.S. environmental scientist James Hansen believes it will be impossible to stop runaway global warming should that oil be burned.

Assigning contributions isn’t straightforward

The point here isn’t to single out Canada. But its cumulative greenhouse-gas emissions since the dawn of the Industrial Revolution is the ninth highest in the world, a ranking likely to rise if plans of current oil and gas companies come to fruition. So the argument sometimes made that Canada isn’t a significant contributor to global warming because of its small population isn’t true. The United States, not surprisingly, is easily the biggest culprit, having emitted 29 percent of the world’s cumulative greenhouse gases, according to calculations by the World Resources Institute.

China ranks second, with nine percent of the world’s cumulative greenhouse-gas emissions, and the top 10 countries account for 72 percent. (Italy is the only G7 country not among the top 10.) But even here, it could be argued that China’s ranking deserves an asterisk. Western multi-national corporations have eagerly transferred production to China, particularly U.S. companies such as Wal-Mart and Apple. So much of those Chinese greenhouses gases are the responsibility of U.S. corporations. A paper led by Glen Peters of the Center for International Climate and Environmental Research in Oslo estimates that, in 2008 alone, the U.S. imported as much as 400 million tons of carbon dioxide in Chinese goods.

Regardless of source, global warming does not come without costs. The nonprofit organization DARA claims that global warming already causes 400,000 deaths per year, and that “the present carbon-intensive economy moreover is linked to 4.5 million deaths worldwide each year.”

Can the World Bank and International Monetary Fund realistically be part of the solution to global warming, as the G7 communiqué would have it? No! The World Bank has poured billions of dollars into dams, power plants and other projects that worsen global warming, and shows no sign of altering its indifference to environmental costs. The World Bank and IMF also promote neoliberalism and austerity programs around the world; immiserating people makes them more vulnerable, not less, to the stresses of global warming and pollution.

The amount of industrial carbon dioxide emissions thrown into the atmosphere from 1988 to 2014 is equal to all the emissions from 1751 to 1988, according to the Climate Accountability Institute. That continually rising rate of emissions is reflective of the ever more intensive pressures for growth capitalism imposes, and the continual movement of production to the places with the lowest wages and weakest environmental laws imposed by capitalist competition, stretching supply chains ever longer, is itself a contributor to global warming.

The G7 communiqué is nothing more than wishful thinking that no real change is necessary. There are no free lunches: The world has to drastically reduce its consumption. As this is an impossibility under capitalism, another world is not only possible, it is necessary in the long run for our descendants to even have a livable world.

New development banks unlikely to threaten World Bank

Forecasts that new development banks sponsored by the largest developing countries are destined to erode the economic dominance of the United States are quite premature, but it is nonetheless no contradiction that the global hegemon has vigorously sought to stop them. More than a little hypocrisy is at work here.

The newly created Chinese-led Asian Infrastructure Investment Bank has drawn much more of Washington’s ire than has the BRICS New Development Bank formed by the five “BRICS” countries of China, Russia, India, China and South Africa. The U.S. government has leaned heavily on Australia and other countries sufficiently firmly that Canberra has declined to join the Asian Infrastructure Investment Bank despite its initial interest, nor have Indonesia and South Korea.

Although the infrastructure bank is to be capitalized with US$100 billion, it would be ridiculous to say that the World Bank or International Monetary Fund will be put out of business. It will not necessarily go much beyond complementing the existing Asian Development Bank, a regional multi-lateral institution controlled by the U.S. and Japan. And even the World Bank says Asia will require trillions of dollars to build its infrastructure in coming years that it and existing institutions can’t supply.

Protest at the World Bank. (Photo by "Jenene from Chinatown," New York City)

Protest at the World Bank. (Photo by “Jenene from Chinatown,” New York City)

The politics of imperialism are at work here. The very idea that a country outside the control of the U.S. dares to set up an institution outside the control of the U.S. is an example that Washington, as the ultimate enforcer of multi-national corporations’ prerogatives, is determined to stamp out.

In a front-page article, The New York Times reported:

“American officials have lobbied against the [infrastructure] bank with unexpected determination and engaged in a vigorous campaign to persuade important allies to shun the project, according to senior United States officials and representatives of other governments involved.”

And what excuse does the U.S. government give for its opposition? Officially, the Obama administration is not talking, but, quoting a “senior official” granted anonymity, the Times reports:

“A senior Obama administration official said the Treasury Department had concluded that the new bank would fail to meet environmental standards, procurement requirements and other safeguards adopted by the World Bank and the Asian Development Bank, including protections intended to prevent the forced removal of vulnerable populations from their lands. … ‘How would the Asian Infrastructure Investment Bank be structured so that it doesn’t undercut the standards with a race to the bottom?’ asked the senior official.”

Has the Obama administration, or, more accurately, the government apparatus that has steered U.S. policy on behalf of corporate interests for generations, suddenly grown a conscience? Quite unlikely. The World Bank and International Monetary Fund, as well as regional banks such as the Asian Development Bank, have been under U.S. suzerainty since their founding. Does the World Bank really uphold development ideals? The record firmly says otherwise.

The World Bank’s record of destruction

The World Development Movement, a coalition of local campaign groups in Britain, reports that the World Bank has provided more than US$6.7 billion in grants to projects that are destructive to the environment and undermine human rights, a total likely conservative. To cite merely three of the many examples, the World Bank:

  • Loaned an energy company in India more than $550 million to finance the construction of two coal-fired power plants. Local people, excluded from discussions, were beaten, their homes bulldozed and complain of reduced food security and deteriorating health as a result of the power stations.
  • An Indonesian dam, made possible by the World Bank’s $156 million loan, resulted in the forcible evictions of some 24,000 villagers, who were subject to a campaign of violence and intimidation.
  • In Laos, a hydropower project made possible by World Bank guarantees displaced at least 6,000 Indigenous people and disrupted the livelihoods of around 120,000 people living downstream of the dam who can no longer depend on the rivers for fish, drinking water and agriculture.

A study of World Bank policies, Foreclosing the Future by environmental lawyer Bruce Rich, found that:

“Drawing on Bank studies, project evaluations and sectoral reviews, it is shown that the World Bank still suffers from a pervasive ‘loan approval culture’ driven by a perverse incentive system that pressures staff and managers to make large loans to governments and corporations without adequate attention to environmental, governance and social issues. In 2013, Bank Staff who highlight social risks and seek to slow down project processing still risk ‘career suicide.’ … [The bank] has continued to binge on enormous loans to oil and gas extraction, coal-fired power stations and large-scale mining generating environmental damage, forest loss and massive carbon emissions.”

A study prepared by the Institute for Policy Studies and four other organizations found that World Bank lending for coal, oil and gas was $3 billion in 2008 — a sixfold increase from 2004. In the same year, only $476 million went toward renewable energy sources.

It could be pointed out that China’s industrialization has had serious environmental consequences, and that Chinese money was critical to the building of the Three Gorges Dam, the construction of which led to the forced removal of at least 1.3 million people. True enough, but Canadian, French, German, Swiss, Swedish and Brazilian capital were also necessary to build the dam. The World Bank also provided loans associated with Three Gorges and provided experts during the project’s planning stages.

Despite the pressure from Washington, 21 countries signed up to be founding members of China’s Asian Infrastructure Investment Bank, including India, Singapore and the Philippines.

BRICS bank expected to bow to the logic of capital

China’s new bank was formed three months after the BRICS New Development Bank. The BRICS bank will be more modest, with a goal of US$100 billion capitalization, spread equally among the five countries. In a July 2014 communiqué, the five countries said their bank will have the “purpose of mobilizing resources for infrastructure and sustainable development projects in BRICS and other emerging and developing economies.” They also pledged to organize a “BRICS Contingent Reserve Arrangement” to “help countries forestall short-term liquidity pressures” resulting from foreign-exchange or debt markets.

Although this bank is intended as a gesture of independence from the U.S.-dominated world financial system, and will use some combination of the BRICS currencies, detaching from the world system is not a simple matter of setting up new institutions. A New Delhi economics professor, C.P. Chandrasekhar, sees the bank being limited in what it can potentially do. Writing on Naked Capitalism, he said:

“However, the new development bank is fundamentally not detached from the global financial system. Being a bank, even if a specialised one, it must ensure its own commercial viability. And it must do so when a large part of the resources it lends would be mobilised from the market. … [W]anting to be seen as respectful of the sovereign interests of borrowing countries, the [New Development Bank] would be careful not to frame its lending rules in ways that threaten the policy sovereignty of borrowing countries. If the countries that approach the institution are pursuing neoliberal strategies, there may be clear limits in terms of what the new development bank itself can achieve.”

Professor Chandrasekhar concludes:

“The decision of the BRICS to set up mini-versions of the World Bank and the IMF seems to be more a symbolic declaration of resentment at the failure of the US and its European allies to give emerging countries a greater say in the operations of the Bretton Woods institutions. … The desire to redress the obvious inequities in the global financial system seems far less important.”

If it is a safe haven, it is not going away

That, for at least the near future, U.S. hegemony is not threatened received fresh confirmation during October’s week-long decline in the world’s stock markets — money from around the world quickly poured into U.S. treasuries as a safe haven. From a capitalist standpoint, doing so is entirely rational: If the U.S. government unravels, the entire global capitalist system disintegrates.

Although predictions of the U.S. eventually being dethroned will one day come true — every empire has an expiration date — that such a dethronement is imminent is wishful thinking. This is not to say that U.S. power is not eroding, but there is no conceivable replacement for the U.S. at the center of the world capitalist system. The U.S. spends about as much money on its military as every other country on Earth combined and the dollar remains the world’s reserve currency; that the world continues to buy U.S. debt as a safe haven enables the U.S. to continue to run up deficits and finance its military.

There is no military remotely in a position to become the global enforcer of capital, nor any currency that could replace the dollar at the present time. The euro is not a candidate because the eurozone is too fractured and unstable; the renminbi is not fully convertible. According to the Bank of International Settlements, the U.S. dollar was involved in 87 percent of the world’s foreign-exchange transactions in April 2013, while the euro was involved in 33 percent and the renminbi in 2 percent.

The U.S. needs China to buy its debt but China needs the U.S. as an export destination; Chinese growth continues to be dependent on unsustainable levels of investment rather than internal consumption, a situation difficult to adjust because production is moved to China to take advantage of its low sweatshop wages. A contradiction on the other side of the Pacific is that U.S. foreign policy treats China as a capitalist competitor that must be contained at the same time that U.S.-based multi-national corporations are instrumental in transferring production to China.

A change in the global hegemon from the U.S. to another country or bloc, leaving the capitalist system intact, provides no salvation, no more than did the early 20th century’s transfer from Britain. Another world is possible only with an entirely new economic system. Otherwise, the subaltern will remain subaltern, be they nation or people.

World Bank’s call for slowing global warming ignores own role

Global warming appears, or so it seems, to have begun to be taken more seriously this week as none other than the World Bank issued a report sounding the alarm bells. But let us not grow warm in our hearts just yet that corporate leaders have suddenly decided to yield to science and reality.

What we have here is a case of truly monumental hypocrisy. The policies of the World Bank and its sibling, the International Monetary Fund, have constituted non-stop efforts to impose multi-national corporate control, dismantle local democratic institutions and place decision-making power into the hands of corporate executives and financiers, the very people and institutions that profit from the destruction of the environment.

The World Bank’s report, “Turn Down the Heat,” prepared for it by the Potsdam Institute for Climate Impact Research and Climate Analytics, does incorporate the latest thinking of climate scientists. It paints a dire picture of a world in which the average temperature will increase by four degrees Celsius (seven degrees Fahrenheit) by the end of the 21st century without large-scale policies to reverse the trend. Among the effects of such a rise in temperatures, according to the report:

“[T]he inundation of coastal cities; increasing risks for food production potentially leading to higher under and malnutrition rates; many dry regions becoming dryer, wet regions wetter; unprecedented heat waves in many regions, especially in the tropics; substantially exacerbated water scarcity in many regions; increased intensity of tropical cyclones; and irreversible loss of biodiversity, including coral reef systems.”

The World Bank report advocates that the century’s temperature rise be held to less than two degrees Celsius. The bank says that “more efficient and smarter use of energy and natural resources” can reduce the climate impact of development “without slowing poverty alleviation or economic growth.” Despite the bank’s neo-liberal agenda, a goal stated in these terms is consistent with Center-Left political parties around the world. Among the initiatives proposed by the report are:

“[P]utting the more than US$ 1 trillion of fossil fuel and other harmful subsidies to better use; introducing natural capital accounting into national accounts; expanding both public and private expenditures on green infrastructure able to withstand extreme weather and urban public transport systems designed to minimize carbon emission and maximize access to jobs and services; supporting carbon pricing and international and national emissions trading schemes; and increasing energy efficiency.”

In other words, the very economic system that has brought the world to the brink of a disaster that could arrive in the lifetimes of many people alive today is supposed to magically eliminate the problem, and without significant changes to consumption patterns. Alas, that is wishful thinking.

The very energy corporations that stand to most profit from continued high energy use and increasingly damaging resource-extraction techniques are the biggest sources of misinformation intended to deny the reality of global warming or to claim that climate change is “natural” and to do anything about it would wreck the economy.

Increase in extreme weather events

Those executives who peddle that ideology will have long ago lined their pockets with outsized profits and will have left this Earth by the time the environmental bill comes due. Last month’s Hurricane Sandy, which devastated the coasts of New Jersey and New York, can’t be seen as anything other than a harbinger of what is coming; similar to the heat waves that destroyed crops in Russia and North America in 2010 and 2012, respectively, and the dramatic retreat of the Arctic ice cap.

Of course, no single storm or single heat wave can be attributed to global warming. But global warming increases the odds of destructive, deadly weather events. One measure is the number of “extreme” weather events (top or bottom ten percent of extremes in temperature, precipitation, and drought) as measured by the U.S National Oceanic and Atmospheric Administration. Through the end of October, 38 percent of the contiguous U.S. land mass had experienced at least one of these extreme weather events in 2012, the second-highest figure since records began to be kept in 1910. The average for the past century is 20 percent; all but four years since 1991 have exceeded this average.

Consistent with the initiatives proposed by the World Bank report, the Obama administration has advocated “green capitalism” to deal with global warming, although in practice (particularly during the just-concluded presidential election campaign) Barack Obama has offered little better than the standard head-in-the-sand ideas of ramping up oil and gas extraction, salted with chimera like “clean coal” and “safe nuclear energy” — two concepts that are the epitome of oxymoronic construction.

Coal throws more global-warming carbon dioxide into the atmosphere than any other energy source and the meltdowns at Fukushima and Chernobyl should be sufficient warnings against building more nuclear power plants even before we contemplate the impossibility of safely disposing nuclear waste.

Energy companies continue to sue to overturn regulations

Hydraulic fracturing of rock — or “fracking” — using jets of water and chemicals to force natural gas from underground is the latest offer from the world’s energy companies. Bitter battles across North America are raging over fracking and the pollution and destruction of water sources left in its wake. But lest we believe the latest World Bank report might induce a pause for thought, consider this: A U.S.-incorporated energy firm, Lone Pine Resources Inc., is suing under the North America Free Trade Agreement (NAFTA) to overturn Québec’s regulations against fracking.

Lone Pine, which is actually headquartered in Calgary, Alberta, despite its formal incorporation in the U.S. tax-haven state of Delaware, is seeking $250 million in compensation, reports The Globe and Mail newspaper of Toronto. (More corporations are incorporated by far in Delaware than any other U.S. state because of its laws specially tailored to benefit corporate executives; the state even has a special court that only adjudicates business disputes.)

Technically, Lone Pine is suing the Canadian government because only the three national governments can be sued under NAFTA. The company is suing under NAFTA’s Chapter 11, which authorizes corporations to sue over any regulation or other government act that violates “investor rights,” which means any regulation or act that might prevent the corporation from earning the maximum possible profit. The Wall Street Journal reports that Québec “banned shale-gas exploration in parts of the Saint Lawrence Valley and revoked previously issued mining rights as it studied the environmental consequences.”

NAFTA allows a Canadian company to sue the Canadian government in a way it wouldn’t otherwise have been able to do — an excellent deal for polluters.

Because the rules of NAFTA are heavily tilted in favor of business and against labor or environmental regulation, almost every case brought to a tribunal under NAFTA ends with either a hefty payout to the suing corporation or an overly generous settlement by governments seeking to avoid an even bigger payout, and a reversal of regulations passed by democratic governments. These decisions are handed down in secret tribunals in which many judges are attorneys who specialize in representing companies in disputes with governments.

The rules of NAFTA, draconian as they are, are merely the starting point for still harsher rules under the secret Trans-Pacific Partnership being negotiated by nine countries. Moreover, the TPP would require the use of a tribunal controlled by the World Bank, a tribunal already in common use under many existing trade agreements. Each time a tribunal overturns a regulation or protection, it becomes a precedent — that is, a new starting point from which further corporate control of national laws can be launched.

World Bank policies fuel global warming

Environmental laws are frequently the target of corporate assaults under free-trade rules, and the most frequent initiators of these assaults are energy and chemical corporations. Tribunals controlled by the World Bank or other institutions that promote corporate globalization ensure that environmental, labor and other legal protections are eviscerated, thereby accelerating the destructive activities that fuel global warming.

The World Bank has long imposed harsh austerity on countries around the world, in exchange for drowning those countries in debt, which then gives multi-national corporations and itself, which enforces those interests, still more leverage to impose more control, including heightened ability to weaken environmental and labor laws.

The bank also plays a direct role in global warming, having provided billions of dollars to finance new coal plants around the world in the past few years.

The World Bank is a key organization in the concatenation of processes that has brought the world to the brink of catastrophic climate change. To issue a report on the likely future destruction to be wrought by global warming without acknowledging its own role and without calling for a fundamental change in the global economic system that it enforces — which is the root cause of a potentially runaway chain of environmental disasters — is beyond chutzpah.

Capitalism is incapable of reversing global warming. All of its incentives are for private profit without regard to public effect. The maximization of profit in the short term is the aim of a capitalist corporation (indeed, for one listed on a stock exchange, it is required by law to have no other purpose). Its incentive, then, is to shed costs whenever possible — not only to reduce wages, but to offload the costs of pollution and other public nuisances onto governments and, ultimately, taxpayers.

The rigors of competition require that ever bigger profits be made and expansion continually undertaken, under pain of going under if a competitor does this more successfully. Because of the necessity of endless growth, and the lack of need to take into account pollution and of the amount of carbon dioxide thrown into the atmosphere because those are not assigned to the corporate bottom line, every systemic incentive exists to extract and use more natural resources, regardless of long-term costs.

It is impossible for such a system to clean up its own mess. At best, it might, in the future, innovate new technologies for renewable energy, but not in a rational manner. The Chinese government has so over-invested in solar-energy equipment, for example, that it is estimated that capacity is now three times more than demand. This explains why U.S. solar-equipment companies are going out of business despite being granted significant government subsidies.

Capitalism has developed to the point where the very existence of humanity could be at stake in the future; where ever more inequality leads to deepening crises and an inability for humanity to deal logically with these crises, even ones that carry the potential for catastrophic destruction. What could be more unsustainable?