Nine myths about capitalism
1:44pm, 14th November 2006
Education and Capitalism: How Overcoming Our Fear of Markets and Economics Can Improve America’s Schools. Chapter 9 is entitled “Nine Myths about Capitalism”. 8 of them are well-explained, but Capitalism harms the environment is bizarrely circular:
One way to judge the impact of capitalism on the environment
is to compare the environmental records of capitalist countries
with those of countries with precapitalist, socialist, or communist
economies.35 The record clearly shows environmental conditions
are improving in every capitalist country in the world and deteriorating
only in noncapitalist countries.36
I will ignore the fact that there are clear exceptions to this rule (the European social democratic countries, for example).
In the United States, the environment is unequivocally becoming
cleaner and safer. According to the Environmental Protection Agency (EPA), total air pollution emissions in the United States fell 34 percent between 1970 and 1990.40 Particulate-matter
emissions fell by 60 percent, sulfur oxides by 25 percent, carbon
monoxide by 40 percent, and lead by 96 percent.
Now could this possibly be because the EPA was founded in 1970 with the express goal of regulating emissions in order to reduce air and water pollution? Clearly it has succeeded, but its success owes nothing to capitalism.
The EPA is the epitome of a centrally planned federal Big Government TLA. It is a socialist institution, and rightly so, for the atmosphere is a fundamentally socialised entity. Capitalism lays down the rules for the free exchange of privately owned goods and services, but the atmosphere is not privately owned, and will not be for the foreseeable future. Allowing free use of the atmosphere for any purpose is an obvious tragedy of the commons, but if private management cannot happen, collective management is all we’re left with, and the United States has chosen the EPA for this task.
There is no inherent contradiction between capitalism and environmentalism any more than there is a contradiction between capitalism and abolitionism. We decided that people are not privately owned goods, and thus cannot be used within the rules of capitalism. We must similarly decide that the atmosphere is not a privately owned good.
The chapter redeems itself a little with:
Finally, the wealth created by the institutions of capitalism
makes it possible to invest more resources to protect the environment.
Once again, the United States is the best example of this
tendency. The cost of complying with environmental regulations in
2000 was approximately $267 billion, or nearly $2,000 for every
household.49 Only a capitalist society can afford to spend so much.
Quite so. Pollution is an externality which must be paid for if we are to avoid the tragedy the commons. Fortunately for our planet and our quality of life, the other branches of capitalism - low taxes, free trade, competitive economies, and incentives to invest and innovate - can be the engine that generates the wealth we need to pay for our use of the environment.
