SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
5
#000000
#FFFFFF
robert pollin
A Note on Noam Chomsky and Climate Collapse
As Noam once said, “if you assume there is no hope, you guarantee there will be no hope.”
Aug 11, 2024
In many of his recent writings, Noam Chomsky has warned that humanity has reached a very dangerous point because we are now living in a world of cascading crises. Indeed, when we look around us, we see a global web of crises. Economic inequality is destabilizing democracies and making a mockery of the vision of a decent society; armed conflicts continue to mark human existence; and nuclear weapons and global warming threaten humanity’s survival. Meanwhile, we must feel aghast over the fact that cynicism and irrationality continue to define the mindset of the powers that be. This is precisely the reason why Chomsky has always seen activism as our only hope.
What’s happening in Gaza is an abomination, one that the leaders of this world are watching coldly from a distance. The same can be said about climate collapse, which is as real as the daily slaughtering of scores of innocent women and children in Gaza by Israel’s military. Our global institutions are incapable of doing anything meaningful about these crises. Real power is in the hands of the most powerful nation-states and their leaders have opted to turn a blind eye to both disasters so as not to disrupt business as usual. Profits and geostrategic interests take priority over human lives and the environment. This is as clear as day, and it has always been so since at least the emergence of capitalism and the rise of the nation-state.
The current conflict in Ukraine began on February 24, 2022, and peace remains as elusive as ever. The U.S. wants peace in Ukraine as much as Netanyahu wants to see a ceasefire deal in Gaza. The continuation of the war in Gaza is vital to the continuation of Netanyahu's political career. In fact, Netanyahu will most likely celebrate by uncorking a bottle of champagne if an all-out war exploded in the Middle East. He knows he can’t possibly lose with the U.S. backing Israel. The cost of an all-out war in terms of human lives, either Israeli or Iranian or Arab lives, is simply irrelevant to him--or to Washington. Or what another war might do to the environment. The war in Gaza is also a war on the environment; in fact, it is “a widespread and deliberate act of ecocide,” according to a study by Forensic Architecture.
Profits and geostrategic interests take priority over human lives and the environment. This is as clear as day, and it has always been so since at least the emergence of capitalism and the rise of the nation-state.
As Chomsky has pointed out, “ history is all too rich in records of horrendous wars, indescribable torture, massacres and every imaginable abuse of fundamental rights.” But the great man has gone to great lengths to stress that the climate crisis is “unique in human history” and, like nuclear weapons, can destroy organized human life as we know it. Yet, humanity spends annually trillions of dollars on weapons and the military but finds it economically unrealistic to devote the necessary funds to protect the earth.
So much for rationality.
Indeed, consider the global implications of the melting of the Antarctica sea ice. It may be winter in the Southern Hemisphere, but the Antarctica is experiencing a major heat wave that has made temperatures rise 50 degrees Fahrenheit above normal. This is the second major heat wave in Antarctica in the last two years. The entire planet has experienced more than 1.5 Celsius of warming in the 12-month period between July 2023 and June 2024, but Antarctica warms twice faster than the rest of the world, according to latest observations. If all the ice vanished, sea levels might rise by more than 150 feet.
It is no longer an issue of if but when major coastal cities will go under.
We already know that the super-rich and powerful don’t care about the rest of us, but it seems they also don’t care about the future of their own children and grandchildren. As Chomsky has underscored in some of the email exchanges that we’ve had, their self-gratification is even greater now that they know that the climate crisis is speeding toward catastrophe.
Indeed, as Copernicus Climate Change Service Director Carlo Buontempo recently said in connection with the new record set for the daily global mean temperature “we are now in truly uncharted territory…”
We already know that the super-rich and powerful don’t care about the rest of us, but it seems they also don’t care about the future of their own children and grandchildren.
And this brings us to the question of activism, which, as already pointed out, Chomsky sees as our only hope to save the planet. It’s our only way to stop carnages; our only way to stop the criminal negligence of climate collapse. We need the greatest possible degree of public mobilization for the purpose of exerting influence on policymakers. But without thoughtless methods like destroying works of art that turn the public against climate activism.
Moreover, Chomsky believes that we have the knowledge, money, and technology to transition from fossil fuels to alternative sources of energy that are clean, affordable and sustainable. This is why he feels that the Green New Deal is exactly the right idea and finds the Global Green New Deal initiative laid out by the progressive economist Robert Pollin particularly attractive.
As far as the link between capitalism and the climate crisis goes, suffice to say that Chomsky understands better than most the forces behind environmental degradation and climate collapse. The economic system of capitalism, especially during its neoliberal phase, drives climate breakdown. Global temperatures started increasing at an alarming rate after neoliberalism became the dominant economic force. Nonetheless, Chomsky is also fully aware of the fact that time is running out and we cannot wait for the end of capitalism before the planet can be saved. This is why he finds it so vital that we find ways to get the world off fossil fuels quickly and fairly. We must reach carbon neutrality no later than 2050. And do so in a just manner. For Chomsky, a just transition is imperative to building the political power that would bring about a shift from the fossil-fuel economy to a regenerative economy. Because, again, social activism is our only hope, according to what many have described as the “ world’s conscience keeper for nearly half a century.”
And, no, hope is not an option. As Noam once said, “if you assume there is no hope, you guarantee there will be no hope.”
Keep ReadingShow Less
A Progressive Political Economy Guide to Inflation
Mainstream economics failed miserably in addressing the financial crisis of 2007-08, so why would it be any different now when it comes to making sense of the rising inflation of the past 18 months?
Jan 06, 2023
Since 2021, prices have surged dramatically across countries and inflation has become a global challenge. Global central banks delivered historic rate hikes in 2022 in order to tame inflation and continued doing so even when inflation was falling, thereby risking a global recession.
Indeed, for the past five months, average inflation in the U.S. has been at 2.4%. Across Europe, inflation has also been dropping. In Spain, for instance, consumer prices rose 5.8% in December, down from 6.8% in the previous month. The December figure represented the fifth consecutive month of declining inflation in Spain. Yet, the European Central Bank—which like the U.S. Federal Reserve has also set the target rate for inflation at the arbitrary number of 2% per year—plans to continue raising interest rates “significantly further” as it deems that inflation “remains far too high and is projected to stay above the target for too long.”
Meanwhile, both the U.S. and European economies are expected to enter a recession in 2023. For what it’s worth, the head of the IMF expects a full one-third of the world to slide into recession this year.
What has been causing the upward trends in inflation and why do central banks around the world keep raising interest rates, a policy which will slow economic growth and result in lower wage increases and fewer jobs? Several factors are at play in causing a surge in prices, which include the Covid-19 pandemic, geopolitics, and corporate mark-ups and profit margins, while pure capitalist logic and interests explain why central banks are raising interest rates to fight inflation.
These were some of the conclusions reached by the progressive economists who participated in an international conference on “Global Inflation Today” organized by the renowned Political Economy Research Institute (PERI) at the University of Massachusetts Amherst and held from December 2-3, 2022.
To start with, a co-authored paper by Robert Pollin (Distinguished Professor of Economics and Co-Director of PERI at UMass Amherst) and Hanae Bouazza shows convincingly that there is no justification why the Federal Reserve and other central banks aim for an inflation target of 2%. Indeed, their research finds “no consistent evidence supporting the conclusion that economies at any income level will achieve significant GDP benefit when they maintain inflation within low single digits, i.e., between the 0 – 2.5 percent inflation range.” Not only that, but the “evidence… suggests that, in general, economies are more likely to achieve higher GDP growth rates in association with inflation ranges in the range of 2.5 – 5 percent, 5 – 10 percent and, for the most part, 10 – 15 percent.”
These are significant findings which raise serious questions about the goals of macro policy. Indeed, if inflation-targeting policy is not conducive to promoting economic growth, what is its primary aim? Citing the work of scholars who have done extensive research around this question, such as Gerald Epstein (Professor of Economics and Co-Director of PERI at UMass Amherst) and others, Pollin and Bouazza suggest that corporate profitability is the primary aim of inflation-targeting policy. “Protecting the wealth of the wealthy” is the reason why the Fed has taken aggressive steps to tame inflation by raising interest rates, Epstein pointed out in a recent joint interview with Pollin.
Needless to say, the mainstream economic paradigm keeps silent on such matters, and one will never find answers in it on the most important processes that affect the workings of the real world and on the issues that are of paramount importance to the lives of working people.
To be sure, mainstream economics failed miserably in addressing the financial crisis of 2007-08, so why would it be any different now when it comes to making sense of the rising inflation of the past 18 months?
With regard to the actual causes of inflation in 2021-22, a paper co-authored by Asha Banerjee and Josh Bivens of the Economic Policy Institute identifies the Covid-19 pandemic and the Russian invasion of Ukraine as key factors in the inflationary surge of the past 18 months or so but argues that profit mark-ups added immensely to inflationary pressures over the same period. Of equal importance here is that the authors present more than sufficient evidence to counter the mainstream economic perspective that lays the blame for the rise of inflation in the U.S. on the American Rescue Plan. Indeed, the data they present, on both the domestic and international fronts, does not support the claim that too much fiscal spending overheated the economies, fueling runaway inflation.
Another paper presented at the PERI conference, co-authored by C. P. Chandrasekhar and Jayati Ghosh, on how low-and middle-income countries can respond to inflation, also argues that there are more important factors than the pandemic and Russia’s invasion of Ukraine behind the current inflation crisis. The sharp rise in global prices of food and fuel, Chandrasekhar and Ghosh contend, was driven by “profiteering, price expectations, and associated speculation.” They show, for instance, that while there were sharp spikes in the prices of food and fuel between February and July 2022, “the supplies of oil and gas to Europe remained largely unaffected.”
The analyses on inflation and its causes, as well as the actual aims of inflation-targeting policy, made by all of the presenters at the PERI conference (which included many leading progressive economists such as William Spriggs, Gerald Epstein, Thomas Ferguson, Nancy Folbre, James K. Galbraith, Servaas Storm, and Isabella Weber, among others) can be described as a Progressive Political Economy Guide to Inflation. Indeed, they show how powerful heterodox economic approaches are in disclosing the real forces driving inflation and the actual reasons for central banks raising sharply interest rates. And, by extension, they also reveal the flaws and limitations of mainstream economics, which is in dire need of a major overhaul.Keep ReadingShow Less
Fight Climate Emergency by Nationalizing US Fossil Fuel Industry, Says Top Economist
"If we are finally going to start taking the IPCC's findings seriously, it follows that we must begin advancing far more aggressive climate stabilization solutions than anything that has been undertaken thus far," writes Robert Pollin.
Apr 08, 2022
In the wake of a United Nations report that activists said showed the "bleak and brutal truth" about the climate emergency, a leading economist on Friday highlighted a step that supporters argue could be incredibly effective at combating the global crisis: nationalizing the U.S. fossil fuel industry.
"With at least ExxonMobil, Chevron, and ConocoPhillips under public control, the necessary phaseout of fossil fuels as an energy source could advance in an orderly fashion."
Writing for The American Prospect, Robert Pollin, an economics professor and co-director of the Political Economy Research Institute at the University of Massachusetts Amherst, noted the Intergovernmental Panel on Climate Change (IPCC) and high gas prices exacerbated by Russia's war on Ukraine.
"If we are finally going to start taking the IPCC's findings seriously," Pollin wrote, "it follows that we must begin advancing far more aggressive climate stabilization solutions than anything that has been undertaken thus far, both within the U.S. and globally. Within the U.S., such measures should include at least putting on the table the idea of nationalizing the U.S. fossil fuel industry."
Asserting that "at least in the U.S., the private oil companies stand as the single greatest obstacle to successfully implementing" a viable climate stabilization program, Pollin made the case that fossil fuel giants should not make any more money from wrecking the planet, nationalization would not be an unprecedented move in the United States, and doing so could help build clean energy infrastructure at the pace that scientists warn is necessary.
The expert proposed starting with "the federal government purchasing controlling ownership of at least the three dominant U.S. oil and gas corporations: ExxonMobil, Chevron, and ConocoPhillips."
"They are far larger and more powerful than all the U.S. coal companies combined, as well as all of the smaller U.S. oil and gas companies," he wrote. "The cost to the government to purchase majority ownership of these three oil giants would be about $420 billion at current stock market prices."
\u201cToday at @TheProspect, Robert Pollin takes a big swing and explains how and why to nationalize the nation's fossil fuel companies, protecting consumer wallets while transitioning to renewables:\nhttps://t.co/h4nfEiwz0A\u201d— David Dayen (@David Dayen) 1649423712
Emphasizing that the aim of private firms "is precisely to make profits from selling oil, coal, and natural gas, no matter the consequences for the planet and regardless of how the companies may present themselves in various high-gloss, soft-focus PR campaigns," Pollin posited that "with at least ExxonMobil, Chevron, and ConocoPhillips under public control, the necessary phaseout of fossil fuels as an energy source could advance in an orderly fashion."
"The government could determine fossil fuel energy production levels and prices to reflect both the needs of consumers and the requirements of the clean-energy transition," he explained. "This transition could also be structured to provide maximum support for the workers and communities that are presently dependent on fossil fuel companies for their well-being."
Pollin pointed out that some members of Congress are pushing for a windfall profits tax on Big Oil companies using various global crises--from Russia's war to the ongoing Covid-19 pandemic--to price gouge working people at the gas pump. The proposal, he wrote, "raises a more basic question: Should the fossil fuel companies be permitted to profit at all through selling products that we know are destroying the planet? The logical answer has to be no. That is exactly why nationalizing at least the largest U.S. oil companies is the most appropriate action we can take now, in light of the climate emergency."
The economist highlighted the long history of nationalizing in the United States, pointing out that "it was only 13 years ago, in the depths of the 2007-09 financial crisis and Great Recession, that the Obama administration nationalized two of the three U.S. auto companies."
In addition to enabling the government to put the nationalized firms' profits toward a just transition to renewables, Pollin wrote, "with nationalization, the political obstacles that fossil fuel companies now throw up against public financing for clean energy investments would be eliminated."
Nationalization "is not a panacea," Pollin acknowledged. Noting that "publicly owned companies already control approximately 90% of the world's fossil fuel reserves," he cautioned against assuming such a move in the U.S. "will provide favorable conditions for fighting climate change, any more than public ownership has done so already in Russia, Saudi Arabia, China, or Iran," without an administration dedicated to tackling the global crisis.
\u201cIt's time to nationalize the oil and gas industry and take back domestic supply from Big Oil execs lining the pockets of investors and politicians with the blood of Ukrainians. #StopBigOil\u201d— Candice Bernd (@Candice Bernd) 1648741539
Pollin is far from alone in proposing nationalization. Writing for Jacobin last month, People's Policy Project founder Matt Bruenig argued that "an industry that is absolutely essential to maintain in the short term and absolutely essential to eliminate in the long term is an industry that really should be managed publicly."
"Private owners and investors are not in the business of temporarily propping up dying industries, which means that they will either work to keep the industry from dying, which is bad for the climate, or that they will refuse to temporarily prop it up, which will cause economic chaos," he wrote. "A public owner is best positioned to pursue managed decline in a responsible way."
In a piece for The New Republic published in the early stage of the pandemic a few years ago, climate journalist Kate Aronoff--like Pollin on Friday--pointed out that nationalization "has a long and proud tradition of navigating America through times of crisis, from World War II to 9/11."
As Aronoff--who interviewed New College of Florida economist Mark Paul--reported in March 2020:
In a way, nationalization would merely involve the government correcting for nearly a century of its own market intervention. All manner of government hands on the scales have kept money flowing into fossil fuels, including the roughly $26 billion worth of state and federal subsidies handed out to them each year. A holistic transition toward a low-carbon economy would reorient that array of market signals away from failing sectors and toward growing ones that can put millions to work right away retrofitting existing buildings to be energy efficient and building out a fleet of electric vehicles, for instance, including in the places that might otherwise be worst impacted by a fossil fuel bust and recession. Renewables have taken a serious hit amid the Covid-19 slowdown, too, as factories shut down in China. So besides direct government investments in green technology, additional policy directives from the federal level, Paul added, would be key to providing certainty for investors that renewables are worth their while: for example, low-hanging fruit like the extension of the renewable tax credits, now on track to be phased out by 2022.
While Pollin, Bruenig, and Aronoff's writing focused on the United States, campaigners are also making similar cases around the world.
In a June 2021 opinion piece for The Guardian, Johanna Bozuwa, co-manager of the Climate & Energy Program at the Democracy Collaborative, and Georgetown University philosophy professor Olufemi O Taiwo took aim at Royal Dutch Shell on the heels of a historic court ruling, declaring that "like all private oil companies, Shell should not exist."
"Governments like the Netherlands could better follow through on mandates to reduce emissions if they held control over oil companies themselves," the pair added. "It is time to nationalize Big Oil."
Keep ReadingShow Less
Most Popular