By Karl North | September 30, 2014
Who cares what fascism is? We in the US should, because elements of it are creeping into our society, activated on an as-needed basis at present to keep its development somewhat below the radar of the masses. Because the term is so often misused, ere I will summarize a relatively rigorous conception of fascism like the one used in Marxian political economy. Its rigor is that it is predictable as a stage of capitalism that emerges under certain conditions of severe societal crisis brought on by economic depression at home and loss of power abroad. I will point to its history in Europe and unfolding events in the US today to exemplify what I see as defining characteristics of fascism.
A Stage of Capitalism
In this conception, fascism is a response to severe, systemic crisis in a capitalist society. Capitalist systems are designed ideally to put the common wealth – all property, raw materials, production facilities and distribution of goods and services – in private hands, directly or indirectly under the control of a business and financial oligarchy. In times of crisis, property and most profits remain privatized but some control over production is surrendered to the governing regime. So fascism is not the preferred stage of capitalism, but is adopted when crisis levels demand more authoritarian, centralized control of the economy. In the high crisis levels of WWII, Nazi Germany commanded Mercedes Benz to build tanks instead of cars. And Washington ordered General Motors to do likewise, as part of a ‘war economy’ under government control.
Because fascism is not squarely anti-capitalist, and is in fact a stage of capitalism, capitalists in societies not suffering a fascist stage are sympathetic to fascism in other countries. US and European industrial elites supported the rise of fascism in Germany until and covertly even after the German declaration of war. After the war, they were happy to rehabilitate the fascist regimes of Franco and Salazar in Spain and Portugal that had been allies of the Nazis, quietly reinstate German war criminals to high office or, in the worst cases, allow German and other fascist mass murderers to escape prosecution by emigrating to the Americas. Today the Western ‘democracies’ support the fascist ‘orange revolutions’ in Eastern Europe, including the overtly Nazi current regime orchestrated by Washington in Ukraine. In the attempt to retain control of Arab oil the US Empire has not hesitated to support Muslim extremists to create ethnic conflict, weaken and balkanize anti-imperialist regimes, and make them more compliant. The violently authoritarian, exclusionary character of some of these jihadi groups is an essential ingredient of fascist ideological control. So while fascism is currently only incipient in imperial centers, it is encouraged when necessary to manage imperial control in peripheral client states.
The goal of fascism is to maintain a capitalist system in the face of crisis by adopting a number of authoritarian methods that would not be needed in more normal times.
The trend toward dictatorial government that is characteristic of fascism extends not just to the economy but to all areas of society. In WWII, rationing replaced some capitalist control of markets. So it is likely to occur again in the US as the present crisis deepens. In US law, all the necessary elements of fascist control are already in place. The so-called Patriot Acts enacted during the Bush regime and reconfirmed and extended under Obama end the most basic protections from dictatorship that citizens have, essential civil rights that date back to the Magna Carta.
A Unique Form of Dictatorship
Totalitarian mind control is a cheaper tool of social control than brute force, and is a defining characteristic of fascism. In recent decades the US mainstream media, always under a large degree of capitalist control, align their manufacture of an illusory reality increasingly with the official story coming out of Washington. Increasing censorship and propaganda in schools and other institutions also is used to ‘dumb down’ the public. Oligarchs like the Koch brothers have promoted authoritarian religious fundamentalism to the point where it governs the collective consciousness of nearly half of US citizens, who become foot soldiers waging war against science and voting for public policies that drive the country toward fascism. Media and government control the increasingly illiterate lower classes and ill-informed professional class with a populist message that has only a semblance of substance in policy. In Nazi Germany it was called National Socialism. In the US, socialism has been made a dirty word, so propagandists are left with lame slogans like ‘a return to growth and job creation’.
All sorts of regimes adopt more centralized decision-making in times of crisis. Fascism achieves mind control in a distinctive way; it promotes the myth of national moral or cultural superiority to justify expansionist violence abroad and repression (called ‘national sacrifice’) at home.
It commonly uses myths of racial, religious or ethnic preeminence in this way, as in the Nazi claim of Aryan supremacy, which justified extermination of all groups that they could call ‘untermenschen’ (subhuman) and confiscation of their assets. Aryan supremacy was used to justify the Holocaust and the scorched earth policy of German expansion into Slavic lands by way of systematic massacre, town by town. The US oligarchy today, faced with declining imperial control worldwide, depends ever more heavily on the myth of ‘American Exceptionalism’ – the illusion that our system of government and economy is superior – to justify military invasion and occupation, often dressed up as ‘humanitarian intervention’, to put out fires of resistance to the Empire. Similarly, Zionist fascism relies on scriptural references to a “chosen people” and a “promised land” to justify its conquest of Palestine by ethnic cleansing and its continuing genocidal expansion toward a “Greater Israel”. The US has a long tradition of racism that is being used to promote a fascist mentality. Attempts in recent decades to clean up the rhetoric have caused racists to use less obvious language while promoting their agenda with ever more intensity, as is manifest in increasing police violence in inner cities, prisons, and among immigrant populations.
Increasing regimentation and surveillance at home contribute to totalitarian control. Civil society organizations come increasingly under central control. The Nazis created the Brown-shirts – youth groups like a paramilitary form of Boy Scouts – to indoctrinate the younger generations, and used them to spy on parents and police neighborhoods.
In the digital age surveillance is easier: the agencies like the NSA and compliant internet corporations like Google invisibly blanket the country with constant surveillance, as whistle blowers like Julian Assange and Edward Snowden have revealed. To prevent such revelations the Obama regime has stepped up persecution and prosecution of whistle blowers far more than any previous administration, even reaching out with a long imperial arm to force Sweden to capture and deliver Assange on trumped up charges.
In the name of national security Washington uses the exaggerated threat of international terrorism to scare the nation into tolerating a creeping police state. Police in the US are now equipped and trained to act like an occupation army, and have resorted increasingly to police violence and repressive curfews and lock-downs in isolated instances. Authorities used the Boston marathon bombing, a crime never really solved, to test out and habituate a million-fold urban population to a lock-down and threatening house-to-house invasion of privacy by heavily armed militarized personnel.
The Contributory Crisis
At this point the question arises: Is there really a deepening crisis sufficient to be driving US society toward the conception of fascism described above? Indeed a crisis exists that is unprecedented in human history, which has three related elements. Its underlying driver, affecting all nations, is resource depletion and its associated damage to essential ecological services that global expansion of industrial society has brought about. A temporary 200-year injection of fossil energy has permitted the growth of an industrial civilization whose consumption of resources has now overshot manifold the ability of the planet to sustain it. Those chickens are now coming home to roost. Cheap energy, the enabler of wealth and productivity during this period, is no longer cheap. Nothing happens without out energy. Hence, less energy = less economic activity = less industrial civilization. The inevitable result of over-extension is shrinkage, which is already happening in the mature industrial economies and their less industrialized client states.
The second element is an economic crisis that is partly a function of the depletion just described. In the words of Naomi Klein, “[O]ur economic system and our planetary system are now at war. Or, more accurately, our economy is at war with many forms of life on earth, including human life.” The economy is losing the war; the economic crisis deepens as long as the capitalist system remains in place. The other reason for the economic crisis has to do with the present evolutionary stage of capitalism in the mature industrial economies, the US, the European Union and Japan. In these economies, economic growth has slowed for a number of reasons as a characteristic of maturity. In response, the international financial class is exporting the industrial sector of these economies to more rapidly growing countries with cheaper labor where it can continue to make the high profits to which this class is accustomed. Because industry is the core of an economy, this slows growth in the mature capitalist nations even more. On top of that, the financial class is exploiting one of the remaining sources of financial profit in the mature economies: a massive expansion of credit/debt including high risk speculative investments. These actions prop up the domestic consumer economy and stock market temporarily, and thus mask the crisis with cheap imported goods, but cannot last, and will worsen the inevitable crash.
The third element in the crisis is the addiction to “The American Way of Life” in the mature economies, strongly reinforced by indoctrination to a fairy tale view of reality created by the capitalist controlled media and government. The result is widespread denial of the crisis, generations of people without the skills to adapt to a post-industrial economy, and mass deception/delusion as to the nature of the crisis. In short a zombified populace.
In “Progress”, Blowback and the Future of Industrial Society I have described the three-part crisis summarized above in more detail.
Under these circumstances, when the reality of the crisis hits hard enough, it seems likely that anger in such an ill-informed populace will replace illusions, making many Americans vulnerable to the demagoguery on which fascism thrives. One can only hope that the economic crisis weakens central government in the US enough to preclude the emergence of a powerful fascist state.
 The film Remains of the Day is a famous story of collaboration with Nazi Germany in the British aristocracy.
By Karl North | July 14, 2014
Orwell’s term “doublethink”, the use of language to create a false picture of reality, has spawned a large literature, but that exposure has not stopped powerful interests from inventing new ways to use the capacity of language to control thought.
Something primed me many years ago to automatically search for the camouflage, innuendo, and outright misrepresentation of meaning that appears to be a subtext of much use of language. I can only guess at the possible influences: formal education in anthropology and linguistics in early life, fluency in a couple of foreign languages and brave stabs at a few others, a brief acquaintance with later Chomsky protégé and political framing analyst George Lakoff (also in graduate school), my eventual assimilation of the great Chomsky’s analysis of the “manufacture of consent”, and perhaps most of all, the effects of coming of age politically in the upheavals of the 1960s.
It no longer takes much to disrobe the most innocent-sounding terms, once one is willing to examine them critically. As illusions fall away, they create a snowball effect by provoking questions about the official narratives in other areas of life. Calling the medical industrial syndicate in the US ‘health care’, for example, when much of it is so obviously nothing but an expensive treatment racket. Or, speaking of ‘the Western Democracies’ as our media incessantly do, when there is obviously no regime anywhere on the globe that fulfills the demands of “by the people, for the people, of the people”, or is even structured so that it might potentially do so. Louis Brandeis, the first Jewish judge on the US Supreme Court, said it in a nutshell: a society can have the wealth in few hands, or it can have democracy; it cannot have both. By this measure, most societies have no chance at a real democracy that works.
So from my vantage point, the success of semantic trickery, now combined with powerful graphics and video, to create a nation of consumers addicted to chewing our way pell-mell through first our own raw materials, then those plundered from other nations, never ceases to fascinate. That was just the beginning of the achievements of ‘public relations’. Amidst the new era of global degrowth due to the end of cheap energy, which is causing increasing suffering and revolts against oligarchic regimes worldwide, the power of language has succeeded in this country in making us the most pacified people on the planet. How does this happen?
The Myth of Absolute Freedom
Since the beginning of the republic, US elites have found in the language of freedom a magnificent weapon of mass deception. “Let Freedom Ring!” the siren song sang out. Pandering to both libertarian Republicans and liberal Democrats, the powers that be offered different conceptions of what ‘free’ means, all of which on deeper analysis ring hollow. ‘Free speech’, ‘free press’, ‘free elections’, ‘free enterprise’, ‘free competition’, ‘free market’, ‘free trade’, ‘free world’ and the like were all peddled to a population that got only a show window view, a shallow misrepresentation of how these policies work out over time in a society where from the outset wealth and power have been concentrated in few hands. As in The Emperor’s New Clothes folktale, it is time to defrock and to deconstruct this language in the light of what has happened historically in our society in the guise of freedom.
What does a closer look at freedom in our society reveal? The main deceptive device in the language of freedom is to focus on individual freedom in the short run and to hide the inevitable consequences over time in which a few that have the means, unless thwarted, capture the means to control the lives of the many. Thus unrestricted freedom ends in loss of freedom. Speech that functions properly to promote the public good turns out to be not free but expensive, and thus becomes the privilege of the wealthy minority who use it to indoctrinate the rest of us. Enterprise appears free until one’s enterprise is subjected to the inevitable hostile takeover by the powerful interests that exert monopoly power in most sectors of our so-called free market economy. Trade is not usually free, but favors the more powerful, imperial player, and so locks lesser economies into underdevelopment. Elections are not free but won by the candidate with the most funding. Academics, particularly in the applied sciences, know well that the price of academic freedom to criticize corporate power is institutional marginalization and the end of funding for their research.
The Ideology of Political Freedom
The success of ‘freedom’ as a weapon of mass deception manifests itself in different ways depending on political viewpoint. For those convinced of the value of unlimited private enterprise, government should be limited to defending the republic. This of course was a cunning illusion, or delusion on the part of many in the working classes who were so persuaded, for the historical pattern of government behavior from the beginning of the republic has been to subsidize private enterprise with the workers’ taxes. More importantly, libertarian policies concentrate private power in an oligarchy that then exercises an unaccountable tyranny over everyone, much of it by making government its servant, thereby diminishing liberty for all.
For the liberals, those convinced of the value of government to improve the quality of life of the citizenry, reliance on free speech and the electoral process, the constitutional forms of government, to work for the common good if used properly, were the illusions. For these forms were always easily bent to serve the interests of the rich, as we indicated above. Liberals cite our free speech and electoral system to justify their belief that our government, if it is not working to their liking, just needs a few repairs. What they forget is that speech that makes a difference is not free; it is expensive. And in a society where the rich can spend billions more than the rest of us, they control the flow of information. They use this concentrated power to control minds, to engineer consent to their rule, by controlling elections through the control of information. Moreover they use their power over information to convince the majority that our subjugation is not real, that we live in a free society where the sky is the limit and, to paraphrase Steinbeck, we are all only temporarily embarrassed millionaires. So free speech alone, without an equal distribution of wealth, is historically revealed as worthless as one of the cornerstones of the democracy liberals cherish.
Thus from both of the widely held political viewpoints the government is correctly seen as failing the people, but for different illusory reasons.
Our extreme attachment to individual freedom seems strange and naïve to foreigners who have a more balanced sense of values: the French, for example, for whom fraternité and égalité are necessary counterweights to liberté. The English language once acknowledged liberty in excess as ‘license’, but that word has all but disappeared from our vocabulary. Historians like Christopher Lasch have described the fertile ground in which our addiction has grown: a culture of individualism and self-absorption, itself partly a product of many generations of dominance of a Protestant ethic shorn of most of the “brother’s keeper” communal values of early Christianity and even surviving threads of it in certain schools of Catholicism. Lasch points to a pathological manifestation of extreme freedom in both the unfettered capitalism of the libertarian right and the “do your own thing” self-indulgence of the sixties left.
The unfortunate result of the obsession in our society with individual freedom is the breakdown of community and even of the family. The breakdown is occurring wherever the maximize-profit-at-any-price economy takes hold and market values supplant human values. It is most evident here in the US in the most extreme version of that economy, and at slower rates across the planet as other societies fall under the spell of our imperial cultural values.
The Mirage of Democracy: The Manufacture of Consent
As the statement by Brandeis implied, real political power in any society can come from only two places: concentrated private wealth or a well-organized and well-informed, class-conscious popular movement. Because wealth in the US is so concentrated in a minority, and because that minority has used its wealth to control the mass media, it has successfully employed sophisticated tools honed in the advertising business to constantly manufacture and maintain in the public mind an ‘official story’ of how our society works that is a tissue of fairy tales.
One of the most blatant yet widely accepted fairy tales is the one about what the mass media call “the Western liberal democracies”. Because in most of these societies real power resides in an oligarchy inside a plutocracy, the role of government is mostly reduced to serving those interests. Public so-called servants (more seductive semantics) in these regimes are only power brokers for an oligarchy, not real sources of power. The role of politicians therefore is to run a Disneyland stage show of democracy, not the real thing. They must constantly walk a tightrope where they appear to serve the public interest while in reality serving concentrated private capital.
As described earlier, this stage show misleads both liberals and conservatives about the function of government and its employees under these conditions. Politicians must be stage managers for the oligarchy although some may delude themselves otherwise. They are assisted by propagandists who convince conservatives that government itself is to blame for its failure to serve the people, thereby neatly deflecting blame from the oligarchy. Other propagandist ideologues convince liberals that because in theory the formal structure of government (elections, separation of powers, etc.) permits democracy, it will actually happen if we just try a little harder. On the rare occasions when a mass movement temporarily overcomes its indoctrination and pulls off a legislative win for the public good, the liberal ideologues exploit it as evidence that “the system actually works”. However, the subsequent history of these occasional wins reveals that they rarely last very long. Politicians, ever obedient to power, follow a historical pattern and quietly erode such gains using a variety of time-tested tools: they weaken the law, create loopholes, avoid enforcement, or rescind it in the dead of night. They know almost instinctively that the longer they leave a law in place that the plutocracy opposes, the more they risk the loss of their jobs and government careers.
The Mirage of Well-Being: The Manufacture of Desire
The endlessly repeated label ‘free market economy’ is used to persuade us that the economy democratically serves the public interest through the anonymous market forces of supply and demand free of government interference. The public is told it achieves the society it wants by its market choices: by shopping. In reality the decisions of the minority investor class shape an economy by manufacturing demand for those products that best serve its interests. Moreover, a brief critical inspection reveals heavy government intervention in the “free market” to subsidize big business, ignore toxicity in both products and byproducts and crush labor’s right to a living wage.
As a result the average citizen of the US consumes the resource base of the planet about thirty times faster than a third world peasant, measured as an ecological footprint. In energy terms we use 35,000 calories to feed a lifestyle in which our bodies need only 2000 calories of food. Much of the rest is what the economists call discretionary consumption, not really necessary for survival. And much of that consumption is an addiction created by the power of advertising.
The End of the American Way of Life and the Cover Up of Collapse
The myth of endless freedom seemed OK as long as the illusion of an endless frontier in theory offered everyone the freedom to acquire land and its wealth. Masses of immigrants to the US endured decades of indentured servitude to escape oppression in Europe, then found that the best land in the East belonged to the rich. However, the frontier, while it lasted, offered a dream of freedom from the resurgence of share-cropping and sweat shops in the New World that followed them from the Old.
However, now several contradictory forces in our industrial economy are combining to bring it down. The manufacture of desire is needed to keep the economy growing, for without growth our peculiar system begins to fall apart. But growth eventually has its price, which by now is ever more evident: rising costs from depletion of essential resources that cannot be replaced, and damage to basic ecological services our species needs to survive. Moreover, as the rich capture an increasing proportion of the wealth that our economy produces, the ability of the majority perform its necessary function as consumers declines, also stalling economic growth.
As the US economy shrinks under these contradictions and can no longer deliver the American Dream, government and mass media are working overtime to maintain a semblance of normality. Aided by generations of indoctrination, they use an avalanche of rigged employment and growth statistics to convince us that an upturn is just around the corner, or, failing that, simply keep all the bad news out of the mass media. Presumably at some point an increasingly angry public will begin to see through the alchemy of language, and pacification will no longer work. As the Chinese say, we live in interesting times.
 See George Orwell, 1984.
 See George Lakoff, Whose Freedom?: The Battle over America’s Most Important Idea
 See Noam Chomsky, Manufacturing Consent
 See Christopher Lasch, The Culture of Narcissism: American Life in an Age of Diminishing Expectations
By Karl North | July 2, 2014
Much of this post was lifted from an article by another author, because I found the logic and the language so compelling. But I neglected to keep the reference. If I learn who the author is, I will be happy to credit him/her with those statements that are not mine, and provide a link to the original article.
A sustainable economy is inconceivable without sweeping systemic economic change. Why? A sustainable economy requires a healthy planet, not the planetary destruction that is occurring now. But maximizing profit and saving the planet are inherently in conflict. Why?
Saving the world requires that the pursuit of profits be systematically subordinated to ecological concerns: For example, the science tells us that to save the planet for human existence, we have to drastically suppress fossil fuel consumption, even close down industries like coal. But no corporate board can sacrifice earnings, let alone put themselves out of business, just to save humanity, and no government can suppress fossil fuel industries because to do so would precipitate economic collapse
That’s because under capitalism, CEOs and corporate boards are not responsible to society; they’re responsible to private shareholders, by law.
Won’t ‘efficiency’ improvements save us by conserving energy and materials? Not a chance. The waste-based industrial economy depletes the natural capital (raw materials) it requires. Under unrestrained capitalism, improving efficiency has always allowed and eventually led to more consumption, which rises to eliminate the savings in energy and raw materials that was gained. Adjusting our waste-based economy to operate at greater efficiency depletes natural capital more thoroughly at a higher rate. This classic behavior is called the Jevons Paradox.
What about ‘green capitalism’? Because under capitalism change relies on private investment, the practical effects of “greening” production are severely limited to tinkering with existing technologies that are really design failures, unable to survive in a post-petroleum economy. And most ‘green’ technology fails a life cycle analysis for energy and other resource consumption. Life cycle analysis reveals this easily.
In fact, green production under capitalism makes the situation worse. Example: Aquaculture was supposed to conserve wild fish populations. But this turns out to be just another case of “green gone wrong,” because, aside from contaminating farmed fish (and fish eaters) with antibiotics to suppress disease in fish pens, farm-raised fish are most profitable as carnivores. So they generally don’t eat corn. Feeding ever-more farmed fish requires capturing ever-more wild forage fish to grind up for fishmeal for the farm-raised fish, which leaves ever-fewer fish in the ocean, starving those up the food chain like sharks, seals, dolphins and whales. Calling fish caught for fish farms ‘trash fish’ just shows how unecological the conventional thinking is. So instead of saving wild fish, fish farming has actually accelerated the plunder of the last remaining stocks of wild fish in the oceans. And the fish farms spread exotic diseases in the ocean ecosystem, which are killing off the wild ones even faster.
Such examples are not exceptions: throughout the industrial food system forces intrinsic to the capitalist economy drive production beyond what nature’s laws can withstand, sending bad ripples in all directions. When the organic movement got steamrollered by the rise of industrial organic, it was in the cards, and those of us who understood the nature of our economy knew it before it happened. Worse, certified organic food from even the most careful organic farmers cannot avoid the contamination by pesticides and GMOs, and indirect damage from the loss of pollinators and seedstock that has sustainable genetics. This is not accidental: GMO technology is not about progress, it’s about corporate power and control. As farmers all over the world suckered into GMOs are beginning to learn, GMOs don’t increase farmer profits, they enslave farmers to agribusiness multinationals while creating hitherto unknown frankenfoods and monster agricultural pests.
The story is the same with pollution: Most of the pollution any car will ever produce (even the ‘greenest’ car), 56 percent, is generated in the manufacturing process before the car even arrives at the showroom – in the production of all the steel, aluminum, copper and other metals, glass, rubber, plastic, paint and other resources that go into every automobile, and in the manufacturing process itself. Again, life cycle analysis of any product reveals all this easily. Car producers don’t want to do the science because it doesn’t sell cars. Like most conventional technologies, most ‘green’ technologies fail a life cycle analysis for pollution, and also for depletion of increasingly scarce, finite raw materials.
Therefore the only way to prevent overshoot and collapse is to enforce a massive economic contraction in the industrialized economies, one that retrenches production across a broad range of unnecessary, resource-hogging, wasteful and polluting industries, eventually shutting down the worst. In effect it requires a controlled collapse and planned transformation. Yet this option is foreclosed under capitalism because this is not socialism: No one is promising new jobs to unemployed coal miners, oil drillers, automakers, airline pilots, chemists, plastic junk makers and others whose jobs would be lost because their industries would have to be closed out. We don’t do that under capitalism; we hang laid off workers out to dry. Hence a policy of sweeping economic contraction would create massive unemployment.
So everybody – CEOs, workers and governments – find that they all “need” to maximize growth, overconsumption, even pollution, destroying their children’s tomorrows to hang onto their jobs today. If they don’t, the system falls into crisis, or worse. We’re all imprisoned on board a runaway train of ravenous and ever-growing plunder and pollution. The present system locks us into a slow moving disaster.
So for example, when climate scientists such as Hansen tell us we need to “shut down the coal industry” and “leave most of the fossil fuels in the ground” to reduce greenhouse gas emissions, it’s only natural that, like auto workers, who will bite the bullet, none of us really want to think about the full implications of this imperative. So the tendency often is to think about this issue in isolation from the rest of the economy, as if fossil fuels are mainly in the “energy sector,” which we could fix by switching to renewables, by junking the clunker for a Prius, and go on driving and consuming as before while, hopefully, the economy also keeps on growing. But this is a delusion because in our economy, fossil fuels are in virtually everything we depend upon, and are necessary to drive every step of a product’s life cycle, from raw material to landfill.
Thus the industrial economy as a whole requires massive amounts of fossil fuels for maintenance purposes alone, just to keep the industrial plant going, to keep entropy at bay. The system (industrial plant and the economy it supports) was designed for, and can only survive on, cheap energy, and that is fast disappearing. An industrial economy operating on a finite planet eventually can no longer afford itself; that is where we are now, entering an era of permanently rising scarcity and ecological costs beginning to take effect. The evidence is all around us.
By Karl North | January 30, 2014
In the tale of the boy who cried wolf, a boy who is tending sheep and serving as a lookout for wolves seeks to relieve his boredom and gain attention by crying wolf when in fact there is no wolf. This decision/policy succeeds for a while, then it no longer works. A systems thinking model reveals the cause of the behavior over time that occurs, described in the graph below, and the counterintuitive result.
In my explanatory model, inspired by Gene Bellinger’s exposition of the same fable on Insight Maker, the system of interest consists of two feedbacks, one positive, or reinforcing,, and one negative, or counteracting. In one, as the boy repeatedly cries wolf, the towns people come running, and the boy gains increasing attention. In the other, the more times the towns people discover there is no wolf, the more the boy’s credibility is destroyed. Soon the second feedback becomes dominant. Because the boy’s credibility is now zero, when a wolf threatens the town and the boy cries wolf, the people no longer react, and the wolf invades the town. This is the counterintuitive, unintended result of the boy’s initial strategy. Here is a causal loop diagram of the model that shows the two conflicting feedbacks:
Foreign policy decisions can often lead to similar counterintuitive results. Suppose a great empire, in its declining years desperate to retain control of a region of the world that provided it with a critical resource, had adopted a policy of backing decadent medieval theocratic monarchies. It did so because it was easy to extract obedience from these backward regimes in return for shoring them up against the pressures of modernity. However, suppose that in recent decades, modern, secular regimes, benefitting from increasing popular hatred of imperial oppression, had replaced a few of the backward ones and had declared a degree of independence from the empire.
To counter the trend toward secular society, religious leaders in the region fomented their own popular struggle against the empire based on religious difference, which relied on the historical antagonism between the religion of the region and the religion of the empire. Leaders of the most extremist sects had the most success in recruiting insurgents to the struggle against imperial control of the region.
To counter the rise of independent, secular regimes, the empire adopted a policy of destabilization of these regimes by fomenting sectarian conflict leading to insurgency and civil war. As it turned out, religious extremist elements within these states, which had the most to gain from regime change, made the most effective insurgents, so the empire armed them and backed them with its air power.
This policy worked well, and several upstart governments on the empire’s hit list fell. The trouble with the policy was that it was short-sighted. The same religious fanatics that the empire used to do its dirty work also used the ancient religious antagonism to spread hatred of the empire throughout the region and began to fight the empire in its decadent client states. The extremists also had the capacity to inflict terrorist violence in the heart of the empire and its allied states. The empire’s use of religious extremists destabilized the whole region, which erupted in various types of conflict that spiraled out of imperial control, and the ultimate outcome of the empire’s policy was heightened popular opposition and resistance to the empire, a consequence in direct contradiction with the policy’s aims.
As it happened, this account is not hypothetical. The US Empire and its European vassals currently are carrying out the same policy in Western Asia, and reaping its counterintuitive results. The US policy of using Muslim extremists started with arming them in Afghanistan under Osama Ben Laden, a CIA operative, to overthrow a relatively secular government allied with the then USSR. That worked well initially, except for the ultimate outcome: an anti-American Muslim extremist Afghan regime. Then, faced with a Yugoslavia that, unlike the rest of Eastern Europe after the break-up of the USSR, refused to fall prey to Western private capital, the US Empire provoked ethnic conflict to break up the nation, partly by backing Islamic groups. The legacy of that policy is an uncontrollable islamo-gangster state in Kosovo. Later, the US and its allies tried to use sectarian conflict to retain control over Iraq after the US invasion and occupation did not replace the independent, secular regime with a passive, pliant one, but the result was an Iraqi regime allied to Iran, an enemy of the Empire. Subsequent uses of extremists in attempting regime change in Libya and Syria have ended in disastrous loss of imperial control of the situation in both countries. Finally, the result of decades of imperial support for Israel’s extermination of Palestinians has been the Islamization of the Palestinian resistance. The whole process has embroiled the region in conflict and weakened the decadent despotisms that are still obedient to the US Empire.
Here is a causal loop diagram of the relevant feedbacks: Regime Change, which represents the policy goal and its results, and two Policy Drift 1 and Policy Drift 2, balancing loops that counteract the policy and explain consequences that were unexpected and counterproductive from the viewpoint of the US Empire.
By Karl North | January 23, 2014
My explicit focus on systems thinking in writing and teaching comes from an awareness, spreading slowly through the knowledge business, that it is an essential approach to all inquiry intended for application to real world problems. For its importance to be taken seriously and applied to all important issues in everyday life, systems thinking needs to be presented explicitly and formally for a couple of reasons:
- It is a revolutionary worldview that attempts to replace a still dominant worldview that causes knowledge obtained by the reductive method to be applied directly, that is, in disregard of its appropriate systemic context. This dominant ‘reductivist’ worldview is strongly held, or at least manifested in practice, in much of the scientific community today.
- Because the dominant worldview has existed for so long, it has spread from the scientific community to the whole culture of the West, and is therefore often unconscious in practice. People readily admit that we live in a universe where “everything is connected”, and indeed, the evidence for this is all around us. Yet in practice, out of habit we narrow our vision to a few variables related to the problem at hand.
None of the pertinent issues of the day – mounting global financial fragility, economic stagnation, resource shortages, ecological destruction, food shocks, critical infrastructure fragility, climate change, rising evidence of stress in human behavior – can be adequately understood without a complex systems perspective. Indeed, many systems thinkers see these issues as related, constituting a convergent ‘perfect storm’ whose prolongation is guaranteed to derail industrial civilization. They have come to see that the causes of this predicament can be traced to technologies and other interventions that are the outcome of reductivist thinking.
For the above reasons, systems thinking urgently needs to be presented formally as a re-education in how to think and make decisions. Many useful systems thinking learning tools exist; what they tend to have in common is an emphasis on seeing broad webs of causal relationship, and on using graphic tools to reveal parts of those webs that are often hidden from view. Here is an example of one of these graphic tools, intended to show a critical web of causal relations that connects to the variable of oil production and depletion:
Called causal loop diagrams because they trace cause and effect over time and show feedback loops and their effects, such figures are dense with meaning. While all the meanings are not evident to the untutored, it is not difficult to learn how to read these diagrams and create them to share systemic insights with others. My paper Introduction to Systems Thinking explains how to read and create causal loop diagrams. An explanation of the above example can be found in my essay, The Case for a Disorderly Energy Descent. The example shows how diagramming the appropriate systemic context can provide insights into the way changes in a single variable (in this case oil production) can cascade through a feedback structure, accelerating other changes along the way that, without a systems picture, one might easily ignore.
“Ecology” as a Systems Thinking Paradigm
Another, somewhat less formal approach to learning and promoting a systems perspective is to broaden the meaning of ecology (as many systems thinkers have) so that it becomes a worldview or umbrella meta-discipline that encompasses all fields of inquiry. This should hardly be a stretch; it simply brings up to date our manner of inquiry to fit our modern scientific understanding (since at least Darwin) of the interdependent way the world works. In this view, the human species and inanimate substances are studied as integral elements of ecosystems, subject to the same rules. Also, as we now know, how things change over time in these complex systems is not self-evident; hence systems thinking requires an understanding of broad causal networks that inevitably overlap artificial disciplinary boundaries and historical timeframes.
Ecology thus defined encompasses the biological, social and physical sciences, in fact all other fields of inquiry. And even social science now needs to include what are often downplayed as humanities (arts, history, philosophy, religion and ethics), a view of the importance of these aspects of human society that is a normal rule and working practice in anthropology. Like formal systems science, ecology writ large is by nature transdisciplinary: it assumes the potential for cause and effect in both directions among elements of the real world that in formal schooling are mostly studied in isolation.
To be blunt, to truly grasp the new worldview and apply its approach to inquiry of any kind we must unlearn much of what we absorbed in school, often imposed unconsciously by a framework of education that distorts subject matter by teaching it in separate silos. All the newer, ‘hyphenated’ subjects – biochemistry, biophysical economics, social ecology, political economy, evolutionary psychology, intellectual history, etc. – have been but baby steps in this new direction.
The view of ecology as the mother discipline is more subversive than it first may appear. Assumptions unquestioned in one field of study are now overturned by empirically discovered rules of nature of long standing in another field. For example, both the law of carrying capacity in ecosystems (including those managed by us), and the laws of energy and matter that are the accepted standard in the physical sciences demonstrate that unlimited growth in anything, an assumption that still underpins conventional economics, is impossible! Historians know that most civilizations collapsed by ignoring the limits to growth. Evolutionary biologists know that most species that ever lived are now extinct, often by ignoring the limits to growth. Physical scientists respect the laws of energy, matter and entropy (the laws of thermodynamics) according to which the continued use (for growth) of anything that exists in finite amounts leads to dissipation, where the resource can no longer be recaptured and used for growth. As a result, when a key resource is no longer economically accessible, growth stops and entropy proceeds unchecked, causing system decline.[i]
In another example, people trained in the physical sciences tend to dismiss the importance of religious or other belief systems not based on empirical evidence. But anthropologists know that since scientific knowledge still provides a far from complete understanding of the complex systems we live in, nonempirical ‘knowledge’ will always serve social cohesion and psychological integrity by filling the knowledge gap left by science. These are not trivial functions but examples of lessons learned in one field that need to be accepted in others.
In sum, when all fields of inquiry are forced to coexist under the same umbrella, assumptions dear to separate disciplines will be exposed to healthy reexamination. While the ecological worldview threatens embedded disciplinary vested interests, we should see such threats as delivering benefits. As Thomas Kuhn made clear in The Structure of Scientific Revolutions, such a paradigm shift is always painful, but when a worldview no longer makes sense of what we presently know, it is time for a new one. However, as Kuhn also said, when a new framework for inquiry becomes necessary, the old one is not completely rejected; much of it is often subsumed within and adapted to the new way of doing science. Thus the systems approach to problems of science does not reject reductive ‘lab science’ methods. Instead of loose canons spawning destructive technologies, they are tamed as tools in the greater goal of studying problems in their appropriate systems context.
Systems thinking is the new scientific paradigm. Already it includes a well-developed theoretical framework of concepts that can guide and sharpen practice. As a formal meta-discipline it is known as complexity or systems science. In ecology it is known as systems ecology, pioneered by the Odum brothers and their intellectual progeny: C. S. Holling, L. H. Gunderson, Charles Hall and many others. Hopefully it will spread fast enough to save the resource base of human civilization from its destruction by the technological products of the old reductivist way of doing science.
[i] Regarding the raw materials consumption/depletion chart, the question, “How many years left?” is misleading in the extreme. As with the question of oil reserves, the depletion of any finite resource begins to negatively affect our economy long before affordably accessible reserves are gone. The effects of the peak oil have been felt in the US since domestic production peaked in 1970. Now that US imperial power is in decline and the US must compete for raw materials on a more level playing field, its economy feels the consequences of rising mineral scarcity even before global production peaks. This is the case with a number of materials in the chart, like copper, phosphorus and coal. The reason is that because the easiest material is extracted first, scarcity caused by rising costs of extraction occurs before the production peak. The costs are not only rising, but rising at an accelerating rate, revealing that their cost/scarcity is currently driven by a positive feedback loop.
By Karl North | January 2, 2014
Nothing is more important to understanding the behavior of a large social entity than awareness of its collective worldview. Usually that worldview is so deeply embedded and taken for granted that its inhabitants rarely know that it exists and shapes their individual and collective behavior in many ways. A common parallel is fish who do not know that the water that touches their noses is water, because they have never experienced open air. For anything in our world to have meaning, we must be able to compare it with some alternative.
One of the most deeply embedded elements of the collective worldview in industrial society is the notion that unending progress is normal behavior in all human societies.
Working in tandem with this belief is the hard fact that our peculiar form of economy becomes unstable and prone to collapse without economic growth:
- Our form of economy breeds inequality, so enough economic growth must occur to allow private capital its profits and still provide a trickle down to pacify the discontent that results from increasing inequality.
- Our form of economy relies on private capital to allocate the investment necessary not only for growth, but merely to sustain the economy at any given level. The capitalist class, the class that has enough discretionary wealth to permit investment, has the right in our form of economy to be paid simply for renting out its capital, and will not invest unless it receives this “interest”. Hence, because our economy relies on private capital, it must “progress” sufficiently to pay the rent on the use of that capital.
Without growth to pay the rent on private capital, our economy stalls and begins to collapse. Economists are therefore acutely aware of the intrinsic need for growth in the peculiar way capitalist society is organized. They have therefore made the notion a cornerstone of their ideology and have done their best to make it central to our worldview. The organization of a society around the need to pay rent/interest is peculiar to modern society because, for long periods in earlier civilizations, debt at interest was known as usury, and was banned or carefully constrained. In capitalism however, debt paid with interest is the main profit-generating mechanism, its heart and soul as it were, and when no longer functional, leads to heart failure.
Progress is so entrenched as to have become a quasi religious belief, as in the proclamations of our leaders that “The American way of life is non-negotiable”. Hence many students of our society who see that progress has nefarious consequences in time and space are coming to the conclusion that we are likely to pursue progress to its bitter end.
My goal here is to explore how our way of doing science reinforces the belief in material progress as a normal trend, so that we revere the technological products of science despite their violation of the laws of nature. The many negative consequences that follow from these violations often come later in time (our children’s lifetime) or more distant in space (those living downstream), which makes it easier to ignore them. In my title I refer to these consequences as “blowback” because they are inevitable and intrinsic to any society whose collective consciousness is fixed and intent on unending growth. I will conclude that progress as we know it contains the seeds of the end of industrial civilization.
A Way of Doing Science
The world we know consists of a web of interacting elements and forces, some strongly related, some more weakly. If we are to understand the consequences of our actions in such a world, our approach to knowledge must assume and acknowledge that web. For most of human history societies did acknowledge the connected nature of the universe in one way or another: as a natural world whose power and integrated structure deserved respect (pantheisms) or later as a theological whole portrayed in sacred texts (monotheisms).
However, an approach to knowledge slowly developed in Western Europe (starting around the 17th century, to put a rough date on it) that deliberately ignored the web, the systemic nature of the world and the way it works. People who eventually called themselves scientists discovered that by reducing their focus to few variables they could discover causal relationships whose consistency they could demonstrate by replicable experiments. This so-called reductive method, when applied to invention of technology, delivered such powerful results that it came to dominate inquiry into how the world works. Reverence for technologies based on this method of inquiry grew so great as to supplant religion as a source of power. Early large steam engines for example, whose invention is credited with jump-starting the industrial revolution, were often housed in massive architectural monuments as ornate in their own way as cathedrals, which reveals how society worshiped these machines.
Now, after several centuries of this quasi-religious obsession with technology, fully industrialized societies have become dependent on a panoply of technologies invented under laboratory conditions by a method that ignores their ripple effects in the web of connections that exist in the real world. A general pattern has emerged where technologies based on purely reductive science work for a while as expected, then start to produce unexpected and often unwanted results, so that they often create more problems than they solve.
The problems they have created have become so great that they are undermining our industrial way of life. As described earlier, our addiction to this way of life and the endless growth our type of economy requires appears to have locked us into a path of depletion where the industrial economy eats itself alive.
First, progress seen as economic growth depletes at an increasing rate the raw materials modern society needs not only to grow but simply to operate at the present level. Energy is the most important raw material because it is necessary for all activity, and because cheap energy permits the massive extraction and consumption of all other materials.
As the energy sources that underpin industrial civilization are becoming permanently scarcer, the material consumption we have become used to over the last two centuries will decline accordingly as a degree of deindustrialization occurs. This trend was already evident by 1970, but masked in various ways so that few were aware of it as an ultimate cause of the visible decline in quality of life.
Compounding the cannibalistic depletion process, the massive extraction and consumption of energy and other raw materials has fouled the earthly nest and disrupted local and planetary ecosystemic processes to the point where the conditions for life and our survival as a species are increasingly at risk. The damage to soils, air, aquifers, forest, fisheries, and other parts of the natural resource base that underpin modern prosperity is now well advanced.
Those chickens are now coming home to roost, and represent the blowback mentioned in the title of this essay. They are manifest in the ever increasing costs of keeping industrial society going. Hence the cost of producing many of the goods that are essential to keep industrial civilization running will soon become prohibitive. This trend is impacting discretionary consumption first, and then is gradually affecting “essentials” like cheap food, transportation, communication and housing, and many economic activities and the jobs that sustain them.
What to do? Really there is no solution, only adaptation. How to do it? The primary adaptation called for is a fundamental shift in the collective consciousness. For example, there exist other ways to do science, ways that seek to understand the world on its own systemic terms rather than the narrow ones of technological knowledge. Here is one take on the question that seems to point in an appropriately holistic direction:
If we really want transformation, we have to slog through the hard stuff (history, economics, philosophy, art, ambiguities, contradictions). Bracketing it off to the side to focus just on technology, or just on innovation, actually prevents transformation.
Instead of dumbing-down the future, we need to raise the level of general understanding to the level of complexity of the systems in which we are embedded and which are embedded in us. This is not about “personal stories of inspiration” [à la TED talks, for example - KN], it’s about the difficult and uncertain work of demystification and reconceptualisation: the hard stuff that really changes how we think.
I suspect that those who take this direction will find that academia has become too compartmentalized to permit the holistic, trans-disciplinary approach that is necessary. They will become an outlier intelligentsia, agitating and sharing down in the streets with everyone else. In a small way this is already happening.
 I discuss this point in much detail in Reductionist Science and the Rise of Capitalism: Implications for a New Educational Program of Agricultural Science at Karl North Eco-Intelligence
 Benjamin Bratton
By Karl North | August 21, 2013
I have just added this account of my experiences in energy-efficient housing design and construction to my Core Papers on this website. It is an attempt to fill a gap in the literature of low energy design that, in view of the long-term energy crisis that the world is entering, I see as a serious deficiency. It was originally published by TCLocal, an energy descent research group in Ithaca, New York.
Current interest in “green design” tends to run to solar and wind electric technologies that replicate the push-button convenience that our society is used to but are very inefficient ways to heat a building. This approach bestows a certain social status but is so expensive that it is not a model likely to gain widespread adoption in an industrial economy now headed into long-term decline. Area developers sometimes promote “green materials” that may also confer status but rarely save as much of the planet as simple construction designs that dramatically reduce residential energy use.
Human consumption of planetary resources is now coming up against hard physical resource limits, with the following implications for home heating: 1) All fossil fuels will gradually become too scarce to be affordable for heating1; 2) As human society returns to reliance on biomass energy for many purposes, wood and other forms of biomass will become scarcer as well; 3) Unlike direct heat from the sun or biomass burning, other sources including “alternatives” like wind or solar electric heating require technologies that are expensive and energy conversions that waste energy, which makes them too costly for most people; 4) As fossil energy becomes more scarce, economies that currently can produce resource-intensive alternatives will no longer have the industrial capacity to provide these technologies at the necessary scale. The only answer is to use lower cost technologies.
Food Production Systems in the Decline of the Industrial Age: A Call for a Socio-ecological Synthesis
By Karl North | June 9, 2013
The sustainability of industrial food production has long been under attack for its destruction of the soil, water, air and other products and services essential to life on earth. Now the massive consumption of energy and other resources needed to build and maintain industrial society has led to the depletion of these materials to a degree that makes the survival of industrial agriculture even more implausible due to its utter dependence on external inputs. The population that will come through the gauntlet of industrial decline will depend on the level of agricultural productivity that can be sustained. The thesis of this paper is that human society is entering a new era in which agricultural productivity and subsequent carrying capacity in human population will depend on major changes in three areas:
- A society reoriented to emphasize agrarian communities more than urban living environments;
- Agroecosystems designed to rely on local self-sufficiency and biological diversity rather than high external inputs, and
- A scientific paradigm that re-emphasizes whole system modeling rather than exclusively reductive methods, specifically one that develops a synthesis of sociological and bio-physical research.
It is important to recognize that the effort to implement these changes will confront deeply imbedded socio-cultural patterns that are an unfortunate legacy of the industrial age.
The Urban/Agrarian Conundrum
A highly urbanized global population reliant on cheap but energy-intensive food production is one of the extravagant legacies of the waning industrial age. As industrial economies go into permanent decline, they will gradually fail to support large populations used to an urban standard of material consumption. Moreover, even where agricultural science is moving in the direction outlined above, a highly urbanized society is an impediment to change because too few are able or willing to become farmers.
Cuba is an interesting example of the problem. Cuba is a world leader in the design of low input agroecosystems. But Cuba, like most highly urbanized societies, has a farming population that is too small to produce enough food to feed its whole population using these labor–intensive systems. Incentives to encourage urbanites to move to rural communities and adopt an agrarian life have not had the necessary success. Therein lies a good part of Cuba’s failure to achieve food sovereignty after a half century of revolutionary programs devoted to that goal.
Like Cuba, most nations are hamstrung with urban populations inherited from the industrial age. Does this mean that the geographic reconfiguration of society that is necessary must await the chaos and suffering that will accompany the deterioration of city life in the post-petroleum era? Once again in history, perhaps only necessity will drive change. See my Cities and Suburbs in the Energy Descent: Thinking in Scenarios for more exploration of this question.
Diversified, Self-sufficient Farming Systems
The lack of farmers is only one of the negative legacies of the industrial age. Another is an economic system that favors agricultural specialization to such a degree that it has structured even the quest for more sustainable alternatives. Some farmers in the organic farming movement have understood the ecological efficiency and resilience of highly diversified systems that will be essential in the energy descent. But generally they have found it hard to create them because these systems are not yet economically competitive in the present economy. In my Visioning County Food Production, Part Two: General Problem areas in Sustainable Agriculture Design I presented historical models and agroecological theory that support the integration of crop and livestock production as central to the improvement of agroecosystem sustainability, but successful integration is still rare in the alternative agriculture movement in the US. Part of the problem is the management skill and effort that such complex agroecosystems require, but one solution, at least in the present economic environment, may be sociological. Rather than design the farming system around the nuclear family, it may be easier to achieve the necessary diversity by designing it around an agrarian community of close neighbors that can cooperate to provide the diverse elements that a system requires to gain sustainability.
Whole systems Perspective
A third unfortunate legacy is a scientific paradigm that prefers the predictability of knowledge that comes from narrowly focused research. Born in the 17th century Enlightenment and championed as a close fit to the needs of the nascent capitalist political economy, this paradigm has bequeathed a highly compartmentalized knowledge business that lacks complex system theory and modeling methods in many fields. In our systemically structured world all applied science requires systems thinking and modeling tools. This is especially true in agricultural science, where sustainability is achieved mainly by designing integrated wholes. Moreover, in a world increasingly depleted of the external inputs on which agriculture, including most organic farming, presently relies, the new farming systems must be highly self-sufficient in inputs. For decades, agronomists have paid lip service to the study of natural systems that excel in input self-sufficiency. Temporizing on this issue must give way to action.
As many have argued, natural selection in several billion years of natural history has evolved far more sustainable ecosystems than humans have invented in a few thousand years of agriculture. Logically therefore, the core of training in agricultural science should be systems ecology and complex systems theory, which cannot be absorbed incidentally through the curriculum of separate courses in plant science, soil science, animal science, etc. that are the typical program in most agricultural schools.
In some fields a whole systems approach is already prevalent. Biophysical economics, climate science, public health, dialectical political economy, and systems ecology itself are examples that can provide direction to other fields of ways to model problems in their appropriate historical and systemic context. In agricultural science, not only cultural inertia and its vested interests in academia, but powerful interests in the agricultural economy as well have created headwinds to inhibit change. I explore these questions in more detail in Reductionist science and the Rise of Capitalism: Implications for a New Educational Program of Agricultural Science.
Here again, a science establishment that can survive the decline of the industrial age will require radical changes not only in the content of the science, but in the social configuration of institutions of knowledge production as well. Transdisciplinary research will need to become the norm. Valuable farmer experience derived from daily confrontation with whole systems will need to gain a more important role in the advancement of agricultural science.
Brief exploration of each of three major problem areas in food production has hopefully revealed that change in each requires that sociological understanding go hand in hand with ecological knowledge. Also, by describing these three problem areas together in one essay, I hope to have made clear that, because of their interdependency, none of them can be addressed adequately in isolation. A long history of such isolated problem solving in science has produced a string of technologies that seemed spectacular at the outset. But because of their more distant consequences in time and space, these technologies taken as a whole bear considerable responsibility for the desperate state of the planet today.
The Interdependence of Phantom Financial Wealth, Phantom Carrying Capacity and Phantom Democratic Power
By Karl North | May 13, 2013
Capitalism is a total social system in which most land and other capital assets can be privately owned. Over time this allows profit, wealth and power to concentrate in the hands of a minority. As a result, that minority makes or indirectly controls all the major decisions that shape US society and the rules that govern the way it works. In the latest stage of evolution of the capitalist system, its rules have gradually driven it to create a fantasy world that is tripartite:
Phantom financial wealth. Cheap oil is necessary for real wealth creation because it pays for the interest rates that private capital requires for investment to take place under the rules of capitalism. As oil has become more expensive it has destroyed the process of capital creation. Hence the capital is no longer there either to maintain the physical structures of industrial society or to finance the massive cost of conversion to a society whose physical structures are geared to lower energy consumption. Moreover, because the current structures cannot be maintained without cheap oil, they are gradually falling apart and the economy of real wealth production is at a standstill.
However, the rules allow virtually unlimited creation of money and credit to maintain for a time the profits of the financial class. As in the rest of the capitalist economy, survival in the financial economy requires competition to attain monopoly control. In the present zero-growth economy, unrestrained competition in the financial class now drives money and credit creation mainly for speculative purposes, and the resultant financial wealth greatly exceeds the production of real wealth and is thus phantom wealth.
Phantom Carrying Capacity. The rules of capitalist society allow and in fact drive resource use beyond the carrying capacity of ecosystems. Ecosystem scientists call this overshoot, a process which, continued long enough, leads to collapse. Access to a limited source of fossil energy has allowed capitalism to create a temporary phantom carrying capacity far above real carrying capacity, one that creates the illusion that the last 200 years of excess economic development will persist. In the current overshoot of earth’s carrying capacity, as unrestrained resource use continues to deplete or otherwise damage the resource base, it gradually becomes clear that the system is cannibalizing itself simply to prolong the present level of consumption for a short time.
Phantom Democratic Power. Economic behavior according to the rules of capitalism allows and in fact insures rising inequality. Real democratic power is impossible in societies where most of the wealth is in few hands. So to keep order, governing systems are created that project the appearance of democracy without the reality: phantom democracy.
The Interdependence. Economic activity at phantom carrying capacity depletes resources at a rate that causes rising resource costs and decreasing profit margins in the production of real wealth. The investor class therefore turns increasingly to the production of credit as a source of profits. Credit unsupported by the production of real wealth is stealing from the future: it is phantom wealth. It also creates inflation, which is stealing from the purchasing power of income in the present. Protected from the masses by the illusion of democracy, government facilitates the unlimited production of credit and the continued overshoot of real carrying capacity. This causes inflation and permanently rising costs of raw materials. To divert public attention from the resultant declining living standard of the laboring classes, government dispenses rigged statistics and fake news of continued growth to project the illusion of economic health. The whole interdependent phantom stage of the capitalist system has an extremely limited life before it collapses into chaos.
Why Trying to Save Industrial Civilization with Alternatives to Fossil Fuels Only Makes Things Worse
By Karl North | April 6, 2013
A recent Cornell report on how to convert New York state energy consumption to alternative fuels perpetuates the nonsense that in a declining economy we can convert NY or anywhere else to “clean” wind and solar energy, maybe dimming the lights a bit, and thus continue the party (industrial civilization and the US way of life) indefinitely. The report merits criticism as an example of many such plans that promote large scale conversion to alternative energy, because it epitomizes the narrow technological lens through which we are taught to see problems that need to be viewed in a much larger systemic context. Because of its unstated reductionist assumptions, the study fails on at least three counts:
- Resource Consumption and Associated Pollutions. Construction of such massive projects inevitably chews through an increasingly scarce and therefore ever more expensive global pool of fossil energy and other finite materials. At one time, there existed a window of opportunity to develop energy alternatives like wind and solar on a large scale, a window that is now closed. Thirty or forty years ago when energy, copper, neodymium, etc. were relatively cheap, such a project was feasible and might have bought our way of life a temporary reprieve. No doubt attempts at such projects will continue to be made, but will founder as an economy that is going into permanent decline (due to the same resource depletion) cannot afford the costs. The costs of the attempts will be born all the same, by our children and grandchildren if they survive the man-made ecological holocaust, in the form of a world ever more depleted of raw materials and ecological services that are essential to our quality of life. So the results of such attempts will be anything but “clean” for those who inherit them.
- Permanent Economic Decline. The industrial phase of human history of last two centuries has been possible only because of the cheap, high quality energy of fossil fuels. The end of cheap energy is sending the mature industrial economies (and eventually every energy-intensive economy) into permanent decline. The US economy is at least as hollow and debt ridden as the collapsing economies of Greece and Spain but has used its superpower status to maintain a pretense of stability and living standard a little longer than Mediterranean Europe. This cannot last; when it falls apart all bets are off on energy conversion plans of the scale analyzed in the report.
- Consumption of any kind of energy at this scale is toxic. There is a fundamental flaw in the thinking that the ecosphere can handle as much “clean” energy as the amount of “dirty” energy that we presently consume. In the last 250 years humanity has been using fossil energy at levels far above what the ecosystems of the earth evolved to handle over their several billion years of existence. The fossil fuel era has been a freak accident of natural history. Energy substitutes of any kind that could approach current fossil fuel production levels will be used to prop up the industrial way of life, whose ecological footprint already overshoots earth’s carrying capacity by half. Wind and solar energy at replacement scale will continue to chew up raw materials, creating landfill garbage, destructive sinks, and sheer dissipated heat that the planet cannot cope with. The current increasingly visible climate change is only one manifestation of the problem.
Hence the goal of maintaining current levels of energy production by other means will simply perpetuate resource consumption habits and associated ecological damage and depletions that are now destroying the resource base needed for survival of our species. Why have the engineers of plans like the Cornell report not thought of that?
What Is To Be Done? Human society existed for millions of years without greatly overshooting the carrying capacity of the planet, and can adapt to a more sustainable way of life. The looming failure of the debt-reliant economy offers such an opportunity. The economy controlled by private capital that currently grips most societies manufactures the desire for massive unsustainable consumption in order to maximize private profit. As that economy goes into decline and can no longer service debt, it will collapse. Therein lies the opportunity to adapt to a lower energy way of life, because eventually we will have no other choice.
Richard Heinberg was right, the party is over. In the long run attempts to prolong it by any means whatsoever just make the situation worse. But those who can kick the consumption addiction can potentially adapt to the new era.