Collision Course: Endless Growth on a Finite Planet (49 page)

31
. Vogt 1948, 34–36, 63–67.

32
.
Time
8; Brandt 1950; Fisher 1949.

33
. Foster 1998.

34
. Ross 2000, 8.

35
. Hardin 1968, 132.

36
. Kennedy 2003.

37
. Ciriacy-Wantrup and Bishop 1975.

38
. Shiva 2002, 28–31.

39
. Ostrom 1990.

40
. Hardin 1974a, 1974b.

41
. Speaking to Robyn Williams on October 29, 2011 (Williams 2011b).

42
. Ehrlich 1968, 100.

43
. Hay 2002, 186.

4
The Limits to Growth
and Its Critics

1
. Cited in Barney 1982, 607.

2
. Goldsmith and Allen (with Davoll, Lawrence, and Allaby) 1972.

3
. Beckerman 1972, 328.

4
. Gillette 1972.

5
. Beckerman 1972.

6
. Beckerman 1974.

7
. Koehler 1973; McGinnis 1973.

8
.
Economist
1972; Gillette 1972; Gordon 1973; Koehler 1973; Pavitt 1973; Solow 1973; Walls 1973; Ohlin 1974; Boserup 1978; McGinnis 1973.

9
. Maddox 1972; Cole et al. 1973.

10
. Dryzek 1997, 41; Hay 2002, 185–187, 205.

11
. Freeman 1973; Nordhaus 1973; Pavitt 1973.

12
. McGinnis 1973, 296.

13
. Freeman 1973; Kiernan 1972; Passell, Roberts, and Ross 1972, 1.

14
. Meadows et al. 1973, 218, 235.

15
. Meadows et al. 1973, 222–223, 231–235, 237.

16
. Kneese and Ridker 1972.

17
. Nordhaus 1973; Forrester 1971.

18
. Nordhaus 1973, 1158, 1165, 1182–1183.

19
. Forrester, Low, and Mass 1974, 170–178, 171.

20
. Forrester, Low, and Mass 1974, 180–181.

21
. Forrester, Low, and Mass 1974, 184.

22
. Journalist Ticky Fullerton (2002) asked economist Chris Murphy about geophysical parameters in economic models: “Why don’t mainstream models take account of things like this?” Murphy: “Well they do when environmental outcomes are a major part of the policy issue that’s being considered.”

23
. Kaysen 1972, 664.

24
. Beckerman 1972, 338.

25
. Solo 1974, 517.

26
. Solow 1973.

27
. Meadows et al. 1973, 225.

28
. Landers 2007.

29
. Silk 1972.

30
. Solow 1973, 41.

31
. Beckerman 1974, x.

32
. Trembath 2007; Department of Foreign Affairs and Trade (Australia) 2007. See chapter 6 for a full analysis of this paper.

33
. Meadows et al. 1973, 236–237.

34
. Krauss 2008.

35
. Golub and Townsend 1977.

5 Growth and Consumerism

1
. This status is sometimes claimed for the British East India Company which was founded a year or so earlier, chartered by the English government, and set up along similar lines. The East India Company began by funding specific voyages, however, and did not have tradable shares until 1661.

2
. Sayle 2007, 25.

3
. Smith 1852 [1776], 6. Though Smith is often used to support the exculpation of greed, some scholars, such as John Ralston Saul (1997), argue that Adam Smith’s
Wealth of Nations
cannot be read without reference to his other major work,
The Theory of Moral Sentiments
. Though Smith argued that self-interest
can frequently
lead to the common good of society as a whole, he did not hold that it always and necessarily does so.

4
. McKendrick, Brewer, and Plum 1982, 19.

5
. PBS 1980, vol. 7; Edney 2005.

6
. Friedman 1962, 133.

7
. Jones et al. 2007, 32–36.

8
. Dowie 1977.

9
. Maruyama 1996.

10
. Similar conditions also apply in first world countries where “guest workers”—and sometimes forced labor (Badkar 2011)—have been introduced, for example farm laborers in Florida (Crick 2007) or southern Italy (Wasley 2011).

11
. Hobsbawm 1989, 316–319.

12
. The Australian government report released for the Asia-Pacific Economic Cooperation forum in late 2007 reflects the depth of this concept in modern policy thinking and is discussed in chapter 6.

13
. McKendrick, Brewer, and Plum 1982.

14
. Fraser 1981; Leach 1993, 20; Whitwell 1989, 7–11.

15
. Leach 1993, 3.

16
. Somewhat modified, in Germany’s case, by crippling reparations.

17
. Cherrington 1980, cited in Beder 2004a, 1.

18
. Mill 1848, 308.

19
. Hunnicutt 1996, 1–6.

20
. Hunnicutt 1988, 37–65.

21
. Cited in Hunnicutt 1988, 38.

22
. Allen 1931, 128.

23
. Bernays 2005 [1928], 84.

24
. Cowdrick 1927, 208, cited in Hunnicutt 1988, 42.

25
. Cited in Hunnicutt 1988, 57.

26
. Committee on Recent Economic Changes 1929, xv, xviii.

27
. Cited in Hunnicutt 1988, 42.

28
. Schumpeter 1975 [1942], 82.

29
. Whitwell 1989, 11–15.

30
. Ewen 1996, 228.

31
. Speaking to Phillip Adams on March 25, 2008 (Adams 2008).

32
. Ewen 1996, 179.

33
. Packard 1959, 308.

34
. Galbraith 1958, 92.

35
. Galbraith 1958, 93, 95–96.

36
. Galbraith 1958, 97.

37
. Cited in Kettles 2008, 47.

38
. Packard 1963 [1960], chaps. 6, 7.

39
. Whitwell 1989, 34.

40
. Ewen 1996, 10–11.

41
. Bernays 1961 [1923], 34–35.

42
. Bernays 2005 [1928], 37–38.

43
. Bernays 2005 [1928], 63, 75.

44
. Le Bon 1960 [1895], 23, 112, 114–115.

45
. Bernays 2005 [1928], 73, 38, 71.

46
. Marcuse 1968, 9.

47
. Marcuse 1970, 62, 67.

48
. Schor 1991, 2.

49
. Marcuse 1969, 4–6.

50
. Harmer 2008.

51
. IMF 2009, 1.

6 The Rise of Free Market Fundamentalism

1
. A term revived after World War II by dissenting scholars who sought to situate economies in their historical, political, and cultural settings.

2
. Smith 1852 [1776], 184.

3
. E.g., Ormerod 1994; Saul 1997.

4
. Rand’s novels were first published in the 1940s and 1950s.

5
. Keay 1987.

6
. Friedman and Friedman 1998, 605.

7
. Hayek 1976 [1944], 10, 78.

8
. Tribe 2009, 75–6.

9
. UN 1948.

10
. Hayek 1976 [1944], 19.

11
. Stretton 2000, 219.

12
. Nadeau 2008; Mirowski 1984.

13
. Ormerod 1994, 28.

14
. Stretton 2000, 637.

15
. Stretton 2000, 80.

16
. Roosevelt 1941.

17
. Such as Dr. Brian Walker of Australia’s CSIRO.

18
. Walker and Salt 2006.

19
. Sheeran 2008.

20
. Woolley 2008; Phillips 2006, 266.

21
. Nor does “high-frequency trading,” which is conducted by computers according to algorithms, meet any needs other than the generation of speculative profit through arbitrage. It now constitutes somewhere between 20 and 50 percent of trading on the Australian Stock Exchange and, like Woolley’s momentum trading, does not reflect any aspect of the real underlying value of the stock being traded (Mares 2011).

22
. Woolley 2008.

23
. The assembly of these practices is examined in detail in part III.

24
. Cited in Cochran and Miller 1942, 343.

25
. Fraser 2008.

26
. He did not subscribe to the theory of automatic tendency toward equilibrium (Keen 2001, 300), for example, though this did not preclude a faith in the superiority of market processes.

27
. Hayek 1976 [1944], 68, 15, 42.

28
. Harris 1997.

29
. Cockett 1995, 307; Burton 2004. See also part III.

30
. Thorsen and Lie 2006, cited in Mirowski 2009, 449; Thorsen 2009, 16.

31
. Lapham 2004. See part III for the role of family foundations.

32
. Klein 2007, 59–62, 80–81.

33
. These arrangements were agreed to at the Bretton Woods Conference in 1944 and aimed to avoid the monetary chaos and competitive devaluations that had characterized the 1930s. The US dollar became the world’s reserve currency. It was pegged to gold at $35 an ounce, and other currencies were given fixed exchange rates.

34
. Frieden 2006, 339–342.

35
. Helleiner 2008, 222.

36
. Hammes and Wills 2005, 502, 504–509.

37
. Transnational corporations based in Western Europe and Japan had, however, increased in number from about 1950.

38
. Hayek 1976 [1944], 1945.

39
. Duménil and Lévy 2005, 11.

40
. Frieden 2006; Campbell 2005, 188–190.

41
. Frieden 2006, 343.

42
. Frieden 2006, 339–342.

43
. The winter of 1978–1979 preceded the 1979 election won by Thatcher’s Conservatives. The Callaghan Labour government had succeeded in reducing inflation by securing union cooperation in limiting wage increases. Attempts to retain a cap on wages at the end of the accord period led to conflict between government and unions, and many strikes affected essential services during an extremely cold winter.

44
. PBS 2002, chap. 13.

45
. Ranelagh 1991, ix.

46
. PBS 2002, chap. 13.

47
. Frieden 2006, 372–373.

48
. Ebenstein 2003, 52.

49
. “The Brick” was a 500-page neoliberal handbook drafted by a ten-man group assembled by Orlando Saenz, president of the National Association of Manufacturers in Chile. Eight of them had studied at the University of Chicago. Saenz took this step following a meeting between the leaders of Chile’s top businesses that had decided that Allende’s government was “incompatible with freedom … and the existence of private enterprise” and had to be overthrown (Klein 2007, 70–71).

50
. Broder 2002.

51
. Blumenthal 1986, 33; Heritage Foundation 2010.

52
. Beder 2006b, 29.

53
. Harris 1997.

54
. Friedman 1999, xvii.

55
. Friedman 1999, 9.

56
. Klein 2002, 200.

57
. Solomon 2003.

58
. Friedman 1999, 9–11.

59
. Lynch 2008.

60
. Dobbs 2008.

61
. Department of Foreign Affairs and Trade (Australia) (DFAT) 2007, 21.

62
. DFAT 2007, 1–3, 20–21, 23.

63
. Renner 2008.

64
. World Bank 2007; DFAT 2007, 6, 8–15, 18–19.

65
. Garnaut 2008, 9.

66
. Wackernagel et al. 1997.

67
. The 2011 data released in the BP annual statistical review for 2012 estimated global consumption at almost 89 million barrels per day (mb/d) and global production at just over 84 mb/d. US per capita consumption was calculated from the BP statistics to be 0.061 mb/d, which was 8.5 times greater than China’s per capita figure. At US levels, China would require 82 mb/d.

68
. The World Resources Institute (2005)
Earth Trends
website estimated global paper consumption at 352 million metric tons per annum for 2005. US annual per capita consumption was estimated at 297 kilograms, six times greater than Chinese per capita consumption of 44.7 kilograms. At US levels, China would require 353 million metric tons.

7 “Development” and Globalization

1
. Smith 1852 [1776], 258–259.

2
. Galeano 2008, 39–40; Prakash 1991, 115; Chang 2009, 7; Blom 2008, 93–94, 99–100.

3
. UNICEF 2009, 2.

4
. Food and Agriculture Organization of the United Nations 2009; 2010, 4; 2013.

5
. Arndt 1981.

6
. Truman 1949.

7
. See Agarwala and Singh 1958.

8
. Rostow 1960.

9
. Lewis 1954, 416–417.

10
. UN Department of Economic and Social Affairs 1951.

11
. The controversial economist Greg Clark (2008) has even hypothesized that the dispossessed and overworked laborers were so downtrodden that they had few surviving offspring and literally died out. Clark suggests that the descendants of the new entrepreneurial classes, battling each other for a stake in the new order, represent the major genetic heritage of the modern English.

12
. Arrighi, Silver, and Brewer 2003.

13
. Escobar 1995, 5.

14
. Escobar 1995, 80.

15
. Li 2009, 74.

16
. Frank 1978, 154.

17
. Arrighi, Silver, and Brewer 2003, 8–11.

18
. Harris 1986, 202.

19
. Ruggiero 1997.

20
. Arrighi, Silver, and Brewer 2003, 14–15.

21
. Easterly 2001, 135–136, 154.

22
. When Adam Smith celebrated the virtues of free trade, he was largely referring to trade within Britain, which was impeded between cities and counties. Ricardo’s notion of “comparative advantage,” still trotted out by neoliberals, assumed that capital would
not
be mobile between nations, which is far from the case today, when capital is so mobile that it can be redirected with a few taps on a keyboard.