The “Jobs” Illusion(s) and the Work We Must Do

Politicians love to talk about “job creation.” They wallow in social illusion in order to appear to care about the economic future of the people and the nation. At the same time, they pander to the interests of job destruction, whether through automation, international outsourcing, or simply unlivable wages. At the same time, they facilitate the financialization of an empty uber-economy, producing vast sums of phantom wealth for their benefactors on Wall Street.

Political Economy of Job Loss

Many of the jobs lost in recent decades in the U.S. are due to mobile corporate capital seeking to exploit immobile pools of desperate labor in any country where wages are cheapest. The international trade agreements the pandering politicians promote, enable the mobility of corporate capital seeking to exploit cheap labor abroad. They override worker protections as well as restrictions on environmental pollution. Above all, they nullify national sovereignty over such matters of domestic policy by ceding authority to international corporate tribunals. As with other job losses due to automated production, we often hear that “those jobs are never coming back.”

One of the core values held by corporations has always been to reduce the costs of labor and materials in order to increase profits. Nobody should be surprised at that. It is an almost natural part of doing business. However, achieving business success does not require a corporation to refuse its employees a livable wage. Consider Walmart and Costco. Walmart grew to be one of the largest most profitable corporations in the world by squeezing the wages of its employees to the point where many are on food stamps. (Its purchasing power allows it to squeeze its suppliers with similar ruthlessness.) In effect, the American taxpayer is subsidizing Walmart’s profits. Costco, on the other hand, pays its employees a living wage with benefits. The difference in energy and cheerfulness between Walmart and Costco employees is obvious to anyone who visits both stores.

What Infrastructure?

Politicians also like to trumpet our need to “rebuild the nation’s infrastructure,” primarily its decaying roads and bridges. Trump emphasizes the need to modernize U.S. airports. I suppose he wants executive lounges at our international airports to emulate the decadent opulence of Trump Towers.


Old Infrastructure,  Paradigm Lost.

The hard-to-imagine “president elect” offers programs that would subsidize the construction industry work already ongoing, rather than directly fund new public infrastructure and infrastructure repair.

Rarely mentioned are dilapidated schools or poor teacher pay. Politicians love to characterize teachers as overpaid, lazy, and arrogant. Nevertheless, the education of America’s youth is one of the most important forms of infrastructure I can imagine. In other industrialized nations, especially in northern Europe, teachers are highly respected and well paid. Their focus is on the well being of students. Student learning consequently rises far above that common in the U.S. Should we be surprised? Education, if the heavy administrative overburden were eliminated, could be a relatively carbon neutral investment in the future.

Enter climate change. The heating of the earth’s atmosphere due to ever-growing emissions from two hundred years of burning fossil fuels continues producing now obvious catastrophic consequences. Yet political resistance and denial prevail. We ignore much of our own participation in the production of carbon emissions due to a number of complex social psychological forces.[1] The politics of short-term economic interests encourage denial and ignorance in attempting to continue on the path of fossil-fueled affluence. It follows from facing the hard facts of climate disruption that a new great transformation of the entire global economy is necessary. That is the most massive transformation of infrastructure imaginable. It is a leap into the relatively unknown. By comparison, the current talk of “rebuilding America’s infrastructure” seems as trivial as it is misguided. It seriously misses the mark when it comes to the infrastructure work that we must do.

The Climate Crisis and the Work We Must Do

Right off the bat, we might ask why such a benign sounding term as “climate change” has dominated any discussion. First, it was global warming. Then Senator Inhofe held up a snowball in Washington, D.C., as if that proved that global warming was a hoax. Gradually climate change became the dominant term. When I had used the term “climate disruption” a couple of years ago, a Sierra Club activist told that they too preferred “disruption” because “change” did not convey well the reality of climate impacts. I now prefer “climate destabilization,” which seems an even more accurate way to describe the effects of industrial civilization on climate systems. The new world of unstable climate systems requires a new paradigm. “Rebuilding the nation’s infrastructure” merely affirms the old paradigm.


Wind Turbines in Holland, 2016

The science is undeniable, yet politicians routinely deny it in favor of providing political cover for the economic interests of their biggest donors. Those donors, of course, are the very corporations that extract and emit the carbon that warms the atmosphere and destabilizes global climate systems. The same politicians favor reducing corporate taxes and the taxes on the highest incomes, as if the income tax system were somehow abusing those powerful special interests.

The share of taxes paid by the largest corporations and the super-rich has steadily declined ever since the 1950s. Back then, taxes on corporations and the very rich were much higher, the economy was robust, and the national debt was small. In fact, the power elites get away with not paying anything near their “fair share,” as the nation’s infrastructure crumbles and the national debt grows.

Meanwhile, as politicians cling to their old paradigm and its corruption, the nation’s most urgent infrastructure need goes almost entirely unnoticed, rarely mentioned, and routinely denied. Yet, the facts require us to take action now to re-stabilize the climate systems upon which human life depends. We cannot afford not to take drastic action now. We must redirect the nation’s wealth to transform the economy from carbon excess to carbon neutral and to recapture carbon. We must be rapidly reduce net carbon emissions to less than zero by re-establishing ecological systems of carbon storage – tropical forests, for example – not by industrial illusions of “geo-engineering” symptom suppression while denying the root problem.

Deniers distort the uncertainty about the exact location of particular individual effects of global warming. They falsely claim that scientists do not really know whether climate change is real and/or “man-made.” The science of CO2 is long standing, never challenged until it became politically expedient to do so. The global climate system is extremely complex, making it far more difficult to predict an individual weather event than to document the overall trend of increasingly extreme weather, rising seas, and melting glaciers. They use variations in weather to deny the overall trend of increasingly severe droughts, floods, and storms that already disrupt climate cycles and agricultural production.

The short-term economic interests of the most powerful institutions and individuals in the nation prevail. In fact, we need institutional support to build out carbon neutral infrastructure rapidly. It has become extremely urgent, yet political decision makers largely ignore the issue. If ever a massive “jobs program” were possible, we could easily create it by executing a national economic policy of replacing all fossil-fuel based energy systems with new carbon-neutral systems of energy production and use.

Think of it. Stop production of all fossil-fuel burning cars. Build out a national network of electric vehicle charging stations while ramping up electric car production. Require all consumer products to be carbon-neutral, with temporary exceptions where life and health require them. Replace all coal and natural gas burning plants with solar and wind electricity generating systems, which are already more cost effective. Stop all natural gas and oil fracking operations; their total carbon pollution rivals that of coal.

Job losses? Well, they would be trivial in the oil industry compared to the job creation involved in the transformation to carbon neutral energy production and use. Yes, many people would have to change occupations, move to another location, and re-tool some skills. But that has always accompanied economic change. Are we not that resilient?

Continuing on our current path of carbon emissions will lead to a 4-degree Centigrade increase in average global temperatures above pre-industrial levels in the next several decades. That will be extremely catastrophic, resulting in societal collapse and may well also lead to human extinction. The UN agreements set a 2-degree limit, while acknowledging that 1.5 degrees is probably necessary. The actual “commitments” of the signing nations did not even reach the 2-degree Celsius target. The only conclusion I can reach from all this is that the people, where we live, must mobilize ourselves and begin the work that we must do. We must also pressure the institutions that are now obstacles to redirect their destructive policies toward the well being of people and planet. This is beginning to happen at places like Standing Rock, where the destructive forces of extractive capital directly threaten people. We must all find our own Standing Rock. Social movements create their own jobs. So little time, so much to do.


[1] George, Marshall, Don’t Even Think About It: why our Brains are Wired to Ignore Climate Change (London: Bloomsbury, 2014) provides a wealth of information on the scientific basis for understanding the tendency to ignore or deny the overwhelming facts of climate disruption and its catastrophic consequences for the future of humanity.

Capitalist Culture and the American Worker

We are a Capitalist Culture. The entire course of the industrial era has been driven by capital investment in technologies and materials that together have increased economic production. In the U.S. – contrary to corporate folklore – much of that capital investment has been made by the government, often at the behest of business. Infrastructure was the primary focus. The federally funded railways were a major factor in the expansion of the West. The Interstate Highway System started by President Eisenhower, virtually guaranteed post-WWII economic growth and indirectly subsidized the boom in the automobile industry. The early years of NASA saw major new technological inventions and aerospace accomplishments by a government-funded mission-driven enterprise. Advances in the aviation industry, largely publicly regulated then, benefited greatly from those developments. Numerous aerospace corporations grew rich on government “cost-plus” contracts, all the while praising “free market capitalism” and “free enterprise.”

The allies had won World War II supported by U.S. government investment in rapid invention and deployment of new (mostly military) products, also generating full employment. The war economy produced many jobs after politically powerful capitalists forced unemployment-inducing cutbacks in the initially successful New Deal. Investment in productive assets is the driving force behind all economic development. Government investment of public capital – paid for by our taxes – has driven much of the growth of the U.S. economy. U.S. business has been a prime beneficiary of public investments over the nation’s entire history.

Corporate Capital and American Culture
Americans have come to believe that economic development has resulted only from the combination of private capital and personal invention. It is an unquestioned cultural assumption. Why? Because Big Corporate Capital now controls most cultural communication in the U.S.A. The interests of the biggest corporations dominate the content communicated in the mass media — also controlled by Big Corporate Capital. Corporate ideology is expressed in a variety of ways by twisting the ideas that would normally express core American values. The mass media implicitly support corporate agendas rather than the public interest, while sounding like they defend core American values.

A classic case of corporate capitalist culture distorting cultural values were the efforts of groups like the John Birch Society in the 1950s. Like the Birch Society, today’s Koch brothers’ front groups work to get “right to work” laws passed in most states. Who would not agree that everyone has a right to work? It is virtually a universal cultural value, closely tied to “American individualism.” However, the “right” of one person to work in a particular unionized factory or office – without joining the union or paying union dues – is not quite the same thing.

When a union negotiates with management for a living wage or safe working conditions, all wage workers in that business benefit from that negotiation. For a worker to have the “right” to not pay union dues or a fee for the cost of the negotiations that benefit him, that worker becomes a “free rider.” He or she benefits from the success of the group but refuses to pay his/her share of the costs of that benefit. Any one worker has a “right” to not contribute to the efforts of a united group of workers to achieve a living wage. But in that case, s/he should not expect to reap the rewards of that effort. Such blatant exploitation of the efforts of others is the height of hypocrisy. It is also a direct attack on the rights of all other workers to effectively bargain for reasonable wages.

Sure, one could point to some cases where a union has gained unjustified power. Unions, like any other organization, when they grow too big and powerful, tend to act in the bureaucratic interest, not in members’ interests. The teamsters under the ‘union boss’ Jimmy Hoffa come to mind as such as case . A man like Hoffa was rather similar to the likes of a Jamie Diamond or the CEOs of several other financial corporations today, who have ruthlessly exploited their positions as heads of their institutions. The main difference is that nobody had qualms about prosecuting corrupt union leaders. However, corrupt “Banksters” today seem immune to all but the mildest disparagement, no less jail time. Instead, we hear “nobody could have predicted the financial crisis,” when many non-corporate economists did just that as well as point out the corrupt nature of the behavior of the financial elite.

American Values: Minimum Wage and a Living Wage
Recent surveys make clear the American public’s view that workers should be paid at least enough to subsist – it is called a “living wage.” If you work full time, you ought to be able to pay rent and buy food, clothing, and shelter, the basics. Yet over the past several decades more and more jobs are at or near, even below in some cases, the woefully inadequate “minimum wage.” The power of corporations over the political culture coincided with the corporate takeover of the congress and many state legislatures. Wage theft is rampant in situations such as the fast food industry where workers’ power to defend themselves against abuse is at or near zero. That, of course, is where wages are extremely low and the supply of workers is much greater than the demand.

The pure apologists for capitalist culture even argue that there should be no minimum wage, so that the magical “invisible hand” of a “free market” in labor can find the “true value” of any particular job. In a civilized society, one would think, no job should be valued at less than is needed for survival. Yet many executives who have the opportunity to do so, pay starvation wages. I know small business owners who insist on paying their workers a living wage, even for unskilled jobs, when they could pay only minimum wages. But these are entrepreneurs who have consciences; they believe in the American values of fairness and mutual loyalty of employer and employee.

One retired business owner told me with great confidence that raising the minimum wage would be counter productive for low wage workers. They would simply have to spend extra on more expensive fast food because their higher wages would drive up prices. Others claim that raising the minimum wage would destroy their businesses, because their customers would not pay the difference. Most critics of a livable minimum wage claim it would be a damper on the economy. Yet in every instance where the minimum wage was raised significantly, unemployment went down as the local economy was stimulated by the increased demand.  The additional income is mostly spent on necessities in the local economy.

Conscientious employers have proven the living-wage critics wrong time and again. Their businesses typically thrive, both because of the better mutual loyalty between employer and worker, and because the business just runs smother and is usually more responsive to customers as well because the owner has a better attitude about everyone. The public knows that the employment system in the U.S. is rigged to squeeze the workers and disempower them. That is why a new movement for economic fairness and justice is growing. At the same time, growing numbers of low-wage workers are recognizing that the only way they can break out of the trap they are in is to organize themselves and protest en mass. Despite continuing massive corporate propaganda, unions may be on the rise again.

Outsourcing America, or Reviving Our Economy
In the current situation of a continuing “wage recession,” we observe corporations sitting on vast quantities of cash. They hesitate to invest it in production, since low wages have driven demand for basic products so low. Everyone knows that a low-wage worker must spend every dollar s/he is paid just to survive. Production depends on demand. Corporations send capital overseas to reduce production costs and attempt to sell cheaper goods to workers here who cannot afford them. A shrinking middle class trying to survive on unsustainable poverty wages cannot maintain high levels of consumption. The rich can only buy so many mansions and yachts. The super wealthy corporate elites park their riches in financial instruments that contribute little to the real economy that would otherwise need workers at livable wages.

It is time to reassess the entire framework of the dying American economy. Narrow short-term corporate interests are destroying the potential for capital to be invested in creating many needed jobs in this country. The nation needs to do much work in areas that serve the public interest – such as energy efficiency – providing livable wages in the process. A massive investment of existing capital in converting the carbon economy to self-sustaining energy production and conservation would require many jobs. The fossil fuel industry cannot and will not provide such jobs – they are in the public interest, not the fossil fuel industry’s interest.

The so-called free market is anything but free. Capital has been put to many uses that cost society far more than their value to society and now even threaten our survival. Capital enables and empowers social action. Only a realignment of the role of capital in the new economy can make a livable society possible.

Moving Toward an Ecological Infrastructure. Part III: Ecological Transformation

An ecological society will require some basic changes in the way we live. Most analyses of climate change are about disruptions leading to untenable future conditions. Specific reductions in carbon emissions will require transformation of economic infrastructure, which is rarely discussed.

To stabilize global temperature, return to 350 parts per million of CO2 in the atmosphere is necessary. That goal might be achieved if a tipping point is not reached before we take major actions. We are already at about 400. Several indicators suggest such a tipping point is near, where positive feedback loops will amplify already accelerating trends, even if we drastically cut emissions. Warming melts tundra releasing methane, causing more warming, etc. Calling for “further research” excuses intolerable inaction. We must act now based on what we know now.

Carbon Control
It is impossible to list all major contributors to carbon pollution in a blog post. But here are some major categories of carbon polluting infrastructure we need to get under control.

● The Built Environment. More carbon emissions come from fossil fuel burned to heat, cool, and supply electricity to homes, apartments, commercial buildings, and factories, than any other source.

Transportation. Cars, trains, boats, and planes consume huge amounts of fossil-fuel energy and emit greenhouse gasses into the atmosphere.

Energy Production. We burn a lot of carbon fuels in the process of extracting the raw materials from which those fuels are refined. Power plants emit 40% of U.S. carbon pollution. Fracking, the latest technology for extracting oil and gas, is itself a major methane polluter and consumes huge amounts of water and fuel. Tar-sands extraction and processing is another big one. That’s why the Keystone XL pipeline is so dangerous.

Electronics Everywhere. Little thought is given to the immense amount of electricity used to run electronic equipment. ‘Phantom load’ from computers, music electronics, and appliances in standby mode accounts for about ten percent of the electricity usage in households. “The Cloud,” consists of many competing computer “server farms” the Internet giants use to store and process data of all kinds. Let’s not forget the giant telecom corporations. The NSA and other surveillance operations consume massive amounts of electrical energy, mostly from fossil fuels.

The Military. The various branches of the armed forces consume more fossil-fuel energy than any other economic sector. Not surprising. Always contemplating future threats to its viability, the DoD has been pursuing research on alternative propulsion systems and energy sources for a number of years.

These diverse economic sectors involve infrastructure powered by fossil-fuels. Each requires different changes to achieve carbon-neutrality. Priorities must be set and ‘least-impact’ parameters established to make reasonable decisions for each of these sectors. Who is doing that?

Conversion of Economic Infrastructure
All infrastructure conversion requires technology, materials, and labor. Reducing carbon emissions from buildings is labor intensive, which translates into lots of jobs. Most talk of energy efficient buildings is about new construction. But existing buildings produce most of the energy wasted. So investing in retrofitting existing buildings with energy conserving technology will best upgrade this sector of infrastructure.

Conversion to electric cars seems inevitable. But it requires infrastructure – mostly solar-powered charging stations to allow commuters to use their cheap second-generation Teslas. International trade involves massive amounts of mostly diesel fuel consumption. Advanced designs for solar and wind driven ships are now proven. But new ship building takes time. Meanwhile, the false economies of corporate “free trade” must be restrained. The free movement of capital to exploit cheap immobile labor must be curtailed so that local labor can be employed to serve local needs.

If the environmental and social costs of fracking were taxed, the practice would come to a screeching halt. It poisons local water resources, spews lots of methane into the atmosphere, and accelerates global warming. A carbon tax reflecting the real costs would put an end to fracking and accelerate solar power installations and adoption of electric cars.

The Cloud” provides no better data storage than increasingly cheap local storage, which by comparison minimizes electricity use. It should be abandoned for most computing purposes. “Phantom load” is easily controlled by inserting ‘smart’ power bars between the source and all those electronic gadgets and appliances.

The best way to reduce military energy consumption is to stop all the futile wars of choice, eliminating a major source of terrorism as well as the huge environmental costs of war. Cancel absurd super-weapon projects. The vast savings could be converted to useful activity, like converting to an ecological economy.

These are only a few of the economic conversions that are necessary to bring carbon emissions under control while converting to an ecologically viable economic infrastructure and employing millions of citizens.

Necessary Social Mobilization
Here’s the rub. The large scale infrastructure conversions required to realistically control carbon pollution to minimize climate chaos are huge. Yet, national and international institutions remain moribund. Their response to the climate crisis consists mainly of false promises and finger pointing. A major social mobilization is necessary and must be from the bottom up.

Direct action is needed now to mitigate climate disruption and dampen its most extreme effects. Only engaged citizens can take such immediate action. Awareness is surging. Clear mechanisms for meaningful effective action must be made a matter of public knowledge. Bill McKibben and have made divestment from fossil-fuel industries the centerpiece of direct climate action. Move your money to local credit unions and banks. Drastically slash corporate consumerism — what do you really need and from what local source can you get it? Take advantage of federal and state tax rebates for solar installations while they’re still available. Be creative. Momentum follows action. Join others. Act.

Moving Toward an Ecological Infrastructure. Part II: Infrastructure of an Ecological Economy

Almost everyone agrees that much of America’s infrastructure (highways, bridges, electrical grid, power plants, etc.) is in desperate need of repair or replacement. Economic ideologists of corporate “free enterprise” oppose public investment as they attempt to drive corporate taxes to near zero. Nevertheless, we must find a way to move beyond these old powerful forces and ask the more important question. What infrastructure? Here is where we must part with the economic ideology of general “growth” as the answer to every economic problem. Climate disruption forces economic policy to be driven by the immediate need for carbon-neutral infrastructure.

Ecological Energy Production
First and foremost, we must radically reduce carbon emissions to reduce the effects of greenhouse gases. If we don’t, climate chaos will soon turn into economic and social chaos. Simply repairing existing infrastructure would add a lot of carbon and stimulate more carbon-producing activity. Under current conditions, almost any construction or reconstruction process would worsen climate disruption because it relies on fossil-fuel energy. To develop “carbon neutral” industry or products will inevitably involve some carbon emissions too. The only way to minimize that is to go to the root of the problem: energy production. Some predict that within two or three years, half of automobile production will be electric cars. Great. But if the energy to produce them continues to be from coal-fired power plants, well, not so great.

So, in considering the upgrading of U.S. economic infrastructure, the first priority must be to convert energy production from burning fossil-fuels to the proven renewable energy sources: solar, wind, and to a lesser extent, geo-thermal technologies. Hydro-electric generation is great, but there is little opportunity for it. To be clear, nuclear power is a non-renewable, highly expensive and dangerous, and an economically futile path. That is why neither big investors nor big insurance companies will touch it without government guarantees and subsidies. For an ecological economy, nuclear power is simply off the table.

Strong Systems: Distributed and Human Scale
So called “economies of scale” are over-rated. At a certain stage in the industrializing era, bigger factories that took advantage of labor-saving technologies were more cost-effective. But beyond a certain point, returns diminish and size becomes a burden. The power grid is a good example. The big investor-owned utilities have profited from their monopolies — by law, not by efficiency. The giant electric grid with long transmission lines is very inefficient and vulnerable. Now, “smart-grid” technology is available and can better manage a grid, reducing waste. But size is still a problem.

Systems analysts have long known that the larger and more complex a system, the more vulnerable to disruption it is. Smaller self-sufficient power grids, interconnected for backup, are much more reliable, efficient, and defensible. With today’s advanced science and technology, small local systems have advantages that were not available to small tribes and communities of the pre-industrial world. Today, large complex systems are vulnerable to climate chaos, terrorist attacks, and internal system failures, not to mention internal corruption.

Whether it’s power grids, industrial production, food production, or other economic activity, small local systems are the most effective. But they are strongly resisted by powerful existing institutions. The problem, of course, is that the entire trajectory of the industrial and industrializing worlds has led to centralization and gigantism. Concentration of wealth, income, and political power in the hands of an integrated power elite has been the result. This has prevented the establishment of a rational economic policy to serve the public interest. Distributed power, whether electrical, economic, or political, conflicts with the interests of the power elites. Yet, this is exactly what is needed to not only respond effectively to climate chaos, but to establish viable economies for human societies.

The Hard Part: Achieving an Ecological Society
The power elites have a firm grip on the existing national economic and political institutions. That is clear. That renders electoral politics nearly moot for effecting sufficient change quickly enough. In the little time left before climate disruption engulfs the world in economic, political, and social chaos, radical changes are necessary. Any time extreme changes must be accomplished in a short time, a lot of unknowns arise. Uncertainty breeds anxiety. Anxiety causes resistance. Add in all the corporate propaganda and political stagnation is a likely result. That is the state of the national political scene today; not so, local communities.

Despite all the denial propaganda, many people are directly experiencing the immediate impact of the initial stages of climate disruption. Drought, floods, extreme storms, and other extreme weather events are confronting people’s lives directly. Awareness is rapidly growing. The U.S. may be lagging behind most countries in responding to the threat, but public awareness is catching up quickly.

An uncountable number of small groups all across the country are taking action in their local communities to spur adoption of solar energy, resist fracking, and establish community action networks to accelerate societal response to climate disruption, from the grass-roots up. That is exactly the last best hope for human mitigation of global warming and for adaptation to the effects that are already upon us. Part III of this essay will discuss the particulars of the localized political and economic actions that may bring about an ecological society.

Moving Toward an Ecological Infrastructure. Part I: From Growth to Development

Economists are often confused by their own wallowing in esoteric but useless mathematical formulations of unquantifiable human complexities. But we just can’t afford their foolishness anymore. Investment in infrastructure is desperately needed, but not by merely restoring the infrastructure of the old growth economy. That needs to be replaced by a new viable infrastructure for an ecological society. This paradigm shift will require re-thinking core economic ideas to transform economic and social relations.

Great Recession Redux
Old notions die hard. Case in point: the recent/current “Great Recession” of 2008 was/is the inevitable outcome of endless-growth economic policy – which is also destroying the ecosphere upon which we depend. Yet political and financial elites cling to their failed economic ideas. Some politically ignored but eminent economists have cut through that veil of illusion. Paul Krugman, Dean Baker, and especially Joseph Stiglitz – only two of whom are Nobel laureates – see right through it. No complex mysterious forces of economic nature beyond human understanding were at work. Just centralized financial power and greed were enough.

More important, the political-economic response protected the perpetrators and perpetuated the economics of ecological disaster. I love Joseph Stiglitz’s metaphor on how it went down. A deranged paramedic rushes the DWI culprit to the hospital, leaving his victim to bleed out on the street. Similarly, Wall Street’s gamblers were bailed out while the American people were left with a newly bloated national debt. Time for a paradigm shift.

Responding to Crisis
The same accelerating concentration of wealth, and faltering employment and wages that accompanied the housing bubble continue today. The “solution” proposed by most economists is either to “grow” our way out or cut government spending — more plutocratic ideology. The real solution is clear: Resuscitate the victim and charge the perpetrators for their crimes. Neither has happened or is about to. As the combined climate-disruption and economic-instability crisis intensifies, we may see a surge of interest in an ecological economic policy that can slow climate disruption while stimulating a viable economy.

Aside from prosecuting Wall Street criminals, let’s look at the economic-ecologic mess that we’re in and how it might be fixed. With a trillion dollar loss in housing wealth, the American unemployed and under-employed cannot engage in the spending that would stimulate the economy. And the financial geniuses of Wall Street can still borrow from the Fed at near zero interest with “quantitative easing.” They can “lend” that money to the government for a few percent more. It’s a totally secure investment for the plutocrats using none of their own “reserves.” Don’t look to Wall Street for a solution.

The biggest corporations have no incentive to invest their huge cash reserves in the faltering economy. Without evidence of demand, they will hold onto their cash. As a bonus, they get to keep hundreds of billions of their cash income overseas and avoid income tax. Bottom line: neither the corporate nor financial elite will solve the crisis they created. These scofflaws will act to increase their power and wealth until the government bails them out of the next crisis they cause.

Ecological Infrastructure
Both the Keynesian and ecological economists would invest in infrastructure to improve both employment and economic health. This would stimulate demand in the economy and give the corporations a reason to invest in production. But just stimulating “economic growth,” without an ecologically grounded industrial policy would be like a band-aid without adhesive, or worse. Instead, a public investment policy heavily weighted toward investment in the replacement of carbon-based with carbon-neutral energy production is necessary. Throw in a living wage as public policy and the result will be a vibrant economy with minimized climate disruption.

Part II of this essay will discuss how infrastructure investment can energize the economy, but not by inducing unfettered “growth” for its own sake. Instead, we need big investments in stable ecologically viable development that simply retires the old fossil-fuel energy production and builds new industry for an ecological economy. Significant displacements of existing economic institutions will accompany such change, but they are necessary. The societal rewards will be immense.