January 18, 2010

The Environment Is Not The Economy

Posted in Conservatives, Consumerism, Economics, Global Climate Catastrophe, Labour, Political Philosophy, Politics, Society at 2:06 am by Paul Sagar

A few months ago I blogged about the left’s prevailing economic illiteracy, to quite a lot of uproar. I observed that there’s a lot of talk about “new models of growth”, but very little by way of solid proposals. I also noted that there’s a frustrating tendency to equate economic recovery with environmentalism, as though the two automatically go hand-in-hand.

Although for the most part Saturday’s Fabian New Year Conference was a great success, the inability of large sections of the popular left to keep economics and environment conceptually separated was firmly on display.

The conference closed with a light-hearted yet seriously-intentioned “Democracy Den”, imitating the BBC’s “Dragon’s Den” but with people pitching ideas for how to beat the Tories at election. The “dragons” were Ken Livingstone, Mehdi Hassan and Deborah Mattison. Their job was to scrutinise 5 pitches, which were successively put to the audience who were invited to make speeches for and against, before a mass vote.

My personal favourite was the “Make the election about George Osborne: have his face in every voters’ mind” pitch. I also tried to help out Sunny Hundal when he ran out of time, and made a passionate plea for Class War (but now as we know it).

But the most interesting pitch – for all the wrong reasons – came from a lady saying the election should be fought on green issues. She only had 1 minute to make the case, but she successfully managed to conflate economics with the environment within that 60 seconds. Indeed, Deborah Mattison picked her up on it straight away remarking that “you were talking about jobs, but what’s that got to do with the environment?”

Quite. We hear a lot of prattle about “green jobs”. But what are they? Working in wind farm factories? Paying people to pick plastic out of landfill sites? We don’t really know.

But I’ll tell you what, with unemployment nudging just below 3 million, here’s a list of definitely real kinds of employment. Jobs in the oil, coal and gas industries. Jobs making airplanes, staffing airlines, in airports and for companies organising cheap holidays abroad. Jobs making, selling and maintaining cars. Jobs with electricity companies. Jobs building new roads and expanding motorways.

Unfortunately, none of them are green. But they all definitely exist.

Ken Livingstone made the very important point that no matter how important green issues are – and after all, what’s more important than saving the planet? – they don’t win elections. One of the reasons he lost the mayoralty to Boris Johnson was that people were turned-off by Livingstone’s green messages and liked Boris’ proposed scrapping of the Congestion Charge. Mehdi Hassan pointed out that environmentalism isn’t a vote-winner, noting that every time the New Statesman puts the environment on its front cover, sales plummet. It was pointed out that some polls put popular belief in the existence of man-made global warming as low as 39%.

Did the audience take notice, and concede that the environment was not something to campaign on to beat the Tories? Did they hell.

When the debate was opened to the floor, time and time again people spoke passionately in favour of campaigning on green issues. Often this consisted in a straightforward ignoring of the fact that environmentalism doesn’t win votes, and simply moving from “green issues are very important” to “therefore we must campaign on green issues”.

The idea that you campaign on something else that is more likely to help you win and then just do the green stuff seemed lost on many. As did the fact that Labour has had 13 years to do something about the environment, and all it’s got to show is the failure of Copenhagen. Why would voters start seeing Labour as the party of the environment now, because of a bit of pre-election bullshit?

But worse were those who kept speaking about a “green new deal” and “green jobs for the future”. There was lots of inspirational rhetoric about saving the earth and the economy – but details were few and far between. There’s always vague fluff about “insulating people’s houses” on this topic, as though that’s going to prevent global climate catastrophe (although I’ll admit promising to do it for free might win votes). But actual policy proposals that stimulate growth and prevent us consuming all the earth’s resources and burning our atmosphere in the process? No, none of those.

Indeed, I’m starting to suspect there probably aren’t any of those because, er, having high employment and high living standards means using lots of resources which means, er, burning the planet. And this is not some fluke or simple policy choice be teh evil neolibruls. It’s a product of centuries of decentralised, spontaneous evolution for how to best allocate resources and make human life dramatically more worth living than it was a 1000 years ago. Or come to think of it, drastically more worth living that it was 60 years ago in the USSR.

Perhaps this nasty necessity of the situation is why we can all play (and lose) the game “spot the concrete proposal” on the “core principles” section of nothing-organisation the Green New Deal Group’s website.* They haven’t got any substantive concrete proposals because the problem of the environment being destroyed is a problem that goes to the heart not of some abstract monolith called “global capitalism” but to basic facts about how our societies are fundamentally organised and have been for centuries, arrived at via a process of useful innovation and evolution. No blabbing about a “new economics” and a “green new deal” is going to change that. It’s just going to waste time and lose elections.

Of course, a few people spoke dramatically in terms of how we need to make voters see that being green doesn’t mean giving up high standards of living. One young guy rather sweetly pronounced that this was true, because he was both a cyclist and a vegetarian and hence living proof that environmentalism doesn’t mean lower living standards.

I’d hate to break it to him personally, but when the petrol rationing, the limits on car use, the abolition of cheap flights, the electricity curbing and the food restrictions kick-in, no amount of lettuce-eating and peddling around will disguise the fact that if we’re to avoid catastrophe, we’re going to need to make sacrifices. And I reckon many voters get their heads around this. They will be very suspicious of anyone who promises them caviar, whilst proposing to kill all the sturgeons.

Before moving to the public vote, the lady making the initial pitch was asked to defend herself from charges that environmentalism doesn’t win elections. And what did she do? She leapt straight into economics. Building the jobs of the future, green investment, securing a new economy. The usual.

I’ve said it before, I’ll say it again. Saving the environment is not necessarily the same as saving the economy. Imagine: I take over the world, make you all my slaves and in the process we go carbon-zero. Planet: saved. Economy: totally ruined. (But who cares; you’re all my slaves).

The point is, not all things we care about come together in one neat unified package. Hard choices and sacrifices need to be made. It’s not good enough to wave hands in the air and spout off about a “green new deal” as though by simply incanting the words we’ll make it reality.

Macroeconomics is not just some abstract “models” chosen by evil people from Chicago, but possibly being reclaimed by that nice man Mr Keynes. It’s a complex interface of thousands of interacting influences, the vast majority spontaneously arising and not directed by any consciously-centralised administration. And for this we ought to be grateful; centrally planned economies were an almost unqualified disaster, as 70million dead Soviets would attest.**

I certainly believe that governments can make positive and beneficial changes to the workings of (international) market capitalism. Just as they can really mess things up when they get it wrong. But “economics” is not something that can just be replaced overnight like a faulty light bulb. It’s a damn sight more complicated than that.

Yes, climate change is important. Yes, we need to do something about it. Yes, economics is at the heart of that necessity. But working out what is required is very complex, and making it happen is likely to be even more difficult. Part of the complications and difficulties lie precisely in the fact that the environment is not the economy, even if the two are related in myriad ways. We have many values invested in both. But it isn’t true that all our values come together all the time.

The left needs to wake up and smell the coffee.

Firstly, on the immediate issue, if Labour goes to the country with the environment as its main campaigning pledge, the Tories will ease to victory.

Secondly, and with a more long-term perspective, serious changes do need to be made to the systems of mass-production, transport, communication and energy-supply that contribute so much to man-made global warming. That requires economic reform, for sure. But we need concrete proposals for how to bring that about, and to face the reality that it may necessitate great sacrifice. Bleating vaguely about a “green new deal” isn’t what we need. That’s just fiddling whilst Rome burns, no matter how well-intentioned the fiddling.

And believe me, the left has a problem here. I was in the tiny minority who voted against this pitch, which was later chosen as the over-all winner of the day. One of the purest examples of the victory of idealism over both strategy and reality I’ve ever seen. You can be sure this is a mistake the Conservatives will not be making.

* Seriously, take this complete crock of nothingness from The Green New Deal Group:

Jobs, more jobs and secure jobs. And, it’s about the skills and training to create and sustain them: in a time of recession, with unemployment already rocketing in the US, and growing here, shifting to green energy will produce countless new jobs, and create many more pound-for-pound of investment, than propping up the current system.”

Not even an attempt to argue the case or provide reasons. Just a bare assertion. Unbelievable.

** The only case I can think of for saying that state planned economies didn’t prove to be a total disaster is that the USSR won the Second World War and thus prevented Hitler taking over the world. Without state planning Russia would have still been at the level of a 12th Century peasant economy. It was state-directed factories building tanks and planes on five-year-plan production schedules, and the mass-oppression of human rights, that stopped Hitler. Not plucky Brits in spitfires, or late-to-the-party Yanks, but Commies.

11 Comments »

  1. Will said,

    Re: your footnote. If you read the report on the Green New Deal, they do offer explanations as to how new jobs will be created. Eg. Low interest rates on loans for green investments will encourage activity. And higher taxes on fossil fuels will be channeled into creating ‘green collar jobs’. They are just summarising on the website you quoted from.

  2. Paul Sagar said,

    Will,

    what green investments? insulating houses? building windfarms? paying for more buses? It’s all a bit vague, isn’t it?

    Higher taxes on fossil fuels = higher costs for transport, electricity and manufacturing = inflation = discontent = massive popular unrest. Even if people stomach this, what’s going to replace fossil fuels? Because replacing them is necessary, not just putting up the price on what is at present a very inelastic set of commodities Nuclear? That actually is anything but carbon-neutral due to uranium extraction processes. Windfarms? We’d need millions of the things to make a difference. Tidal? Possibly, but who’s worked out the logistics.

    What are “green collar jobs”? And what’s the point in creating “green collar jobs” if the old “whatever-the-opposite-of-green-is collar jobs” remain, thus contributing to continued global warming?

    Also, they can’t just be “summarising” on their core principles page. That’s where they’re supposed to put worked-out, definite proposals for how to make a difference to environmental devastation and improve the economy. What you’ve listed there is either inflationary or vacuous on details. They’ve kept it off their “core principles” page because they haven’t got anything substantive to bring to the table, surely?

    (cheers for commenting – took you long enough!)

  3. Grace said,

    Yes the environment is not the economy. But pursuing strategies to boost employment isn’t the same as promoting the economy either, i’d imagine it’s fairly easy to have near to full employment (eg in soviet union) if you’re prepared to put up with the massive economic cost (waste due to misallocation of resources, inflation etc).

  4. Paul Sagar said,

    Grace,

    Exactly. That’s a good additional point to my OP, I think.

    Of course, as good Keynesian-leftists we shirk the idea of a “natural” rate of unemployment, and believe it is a government’s role to drive down the evil of joblessness by boosting aggregate demand (and we may also reject the notion that this necessarily causes inflation, as a myth of the intellectual history of macroeconomics – see paper by Dr James Forder, forthcoming).

    But you are quite right that simply shouting “more jobs” is not the same as having a healthy economy. Sticking the word “green” in there doesn’t change that, either.

  5. Will said,

    I think they mean green investments like those in Germany. 250,000 jobs in the renewables sector. Off-shore wind farming, electric cars…that kind of thing.

    They would probably argue that the ‘green collar jobs’ would replace the “whatever-the-opposite-of-green-is collar” jobs. But I agree with you. It is hardly a detailed and substantive solution and really quite problematic politically.

  6. Grace said,

    I’m not included in the “we”, you know i know far too little to call myself a keynesian.

    it’s interesting how the attitude towards jobs differs across the political spectrum, eg bryan caplan counting “the make-work fallacy” – that work is good in itself apart from its impact on production – as one of the clearest examples of irrationality, vs cohen in the last bit of “if you’re an egalitarian, how come you’re so rich” talking about his father and how his job related to his life.

  7. [...] for the UK).  We all want to make the Green things that will supposedly power our economy (but as Paul points out, the environment is not the [...]

  8. [...] Sagar More Nonsense from Tories on Tax January 18, 2010 Paul SagarThe Environment Is Not The Economy January 18, 2010 Paul [...]

  9. Alex said,

    I agree somewhat. There certainly is a lot of vaporous thinking on economics on the left. And there has been a number of calls for Green New Deals, that are from people who can’t back up their demands with detail.

    However, I think you’ve conflated a couple of issues in this post. If I have ever thought “We need a Green New Deal”, what I mean is that there needs to be a Keynesian response to the recession, like FDR did with the New Deal (only the lessons of 1937 need to be learnt) with publics works programs and so on as a fiscal stimulus. A good portion of this should come in the form of investing in the infrastructure and technology to move towards a low-carbon society (this should have been done years ago of course, but the past can’t be changed). What in fact I wanted was something like this:

    http://en.wikipedia.org/wiki/American_Recovery_and_Reinvestment_Act_of_2009#Energy

    Only on a greater scale (if the politics allow).

    What instead we got was a somewhat Keynesian response to the recession (interest rates right down near zero, and a fiscal stimulus, 70% of which was a tax cut, and was only for one year).

    In the short run, the idea behind some kind of fiscal stimulus makes sense.

    Anyway, I disagree with the emphasis of this paragraph:

    “I’d hate to break it to him personally, but when the petrol rationing, the limits on car use, the abolition of cheap flights, the electricity curbing and the food restrictions kick-in, no amount of lettuce-eating and peddling around will disguise the fact that if we’re to avoid catastrophe, we’re going to need to make sacrifices.”

    You’re right, sacrifices will have to be made, and in the medium to long term, combating climate change will inhibit growth (fossil fuels naturally being quite cheap). But (and maybe this is just me) the emphasis in that paragraph makes it sound that this will have a serious effect on our quality of our lives. I don’t think that that is the case, and I don’t think that is what things like the Stern Review say either.

    This is not to mention some of the economic inefficiencies we currently put up with that will be fixed at negative cost by paying attention to our energy use. Or the fact that in the long run, the negative effects from climate change will very likely outweigh the cost of acting (kinda like how bailing out the banks cost billions but the alternative would’ve cost us far more).

    So in the short run a fiscal stimulus is good for the economy, (and if it consists of Green stuff, then fantastic), and far from hurting the economy by crowding out (which is what this paragraph seems to imply: “But I’ll tell you what, with unemployment nudging just below 3 million, here’s a list of definitely real kinds of employment. Jobs in the oil, coal and gas industries. Jobs making airplanes, staffing airlines, in airports and for companies organising cheap holidays abroad. Jobs making, selling and maintaining cars. Jobs with electricity companies. Jobs building new roads and expanding motorways.”), crowding IN actually occurs.

    In the medium to long run, growth is inhibited. But this isn’t as bad as perhaps I think you think it is, and is outweighed by what would happen if we didn’t move to a low-carbon society.

    That’s why I think you’ve conflated issues here, because the timing of the different things is very different.

  10. Social comments and analytics for this post…

    This post was mentioned on Twitter by paul_sagar: Much of the left still doesn’t understand economy not= environment: http://badconscience.com/2010/01/18/the-environment-is-not-the-economy/

  11. [...] About how we need a “green new deal” that can rescue the planet and create jobs…with no actual economics printed anywhere on their recycled-paper dross. Then there’s the hard-line wingnuts, such as the [...]


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