Jared Diamond’s “Will Big Business Save the Earth?”
by: Dave Belden on December 6th, 2009 | 13 Comments »
Q: What’s the difference between cheap, clean, plentiful energy from nuclear fusion and the final and utter collapse of capitalism?
A: None. Both are always ten to twenty years in the future.
If we know anything about the Left it’s that it has always seen the failures and brutalities of capitalism clearly, and has always failed to appreciate its adaptability and powers of survival.

Jared Diamond
Now here comes Jared Diamond, the brilliant eco-historian (of Guns, Germs and Steel) whose last message to us was about how civilizations collapse, telling us in today’s NYTimes that big corporations may save us all. What gives? After all, Collapse was a book that nourished the imminent-end-of-capitalism theme in many a lefty’s heart.
You could dismiss this as what happens when a professor who has been immersed for decades in studying birds in New Guinea, and then in thinking big thoughts about how geography does (and does not) determine history, gets lionized in high society and bedazzled by the smooth talkers of the corporate elite with whom he now serves on various high level boards. They do their greenwash talk and hope rises in his chest. After all, the entire title of that book was Collapse: How Societies Choose to Fail or Succeed and which of us does not want ours to succeed?
Be my guest if that mode of dismissing Diamond works for you. But it doesn’t for me. I am a huge Diamond fan, but that isn’t even the main reason I am taking his corporate saviors article seriously: I am highly skeptical of it, but not at all dismissive. I think it has within it some significant clues about how the next fifty years may unfold. I think that as climate change produces profound effects over the coming years, the capitalist system will once again surprise its critics as it throws most everything it has into solving the problem. What was greenwash will turn genuine.
My skepticism is not just about whether that will be enough. I don’t know if it will. But half enough may be sufficient to keep this civilization creaking along, long enough for further rounds of the reformation of business to take place. The civilization that could emerge out of this evolution would not be capitalism but something else, some kind of humanistic, ecophilic, regulated market system. The ideologues of the free market will be defeated, but so will the utopian prophets of the Left, as usual.
Two major factors make me prone to accept this argument. The first is that I have no idea how fast or slow global weirding will impact us. If it happens with catastrophic swiftness, Katrina multiplied, with huge crop failures, refugees in their tens of millions, I think the precariously fine tuning of our present financial system could easily get blown and a downward Depression spiral could become unstoppable. But if climate change happens at a more measured pace, I think it could energize the system to respond in the same way that previous threats of collapse and revolution have energized it, with similar results.
So the second reason is the one I started this post with: the Left’s consistent inability to appreciate why capitalism is so resilient.
It was once thought that capitalism’s downfall would be the impoverishment of the workers. But then the system’s productivity proved so astonishing that it became possible to provide the workers with homes, cars, TVs, social security, education and massively elongated lifespans while still increasing the incomes of the capitalists faster. It was this win-win (even if the bosses and shareholders’ wins were much fatter than the majority’s) that undermined socialist dreams as much as anything else.
Peter Drucker argues that Hitler fell into this trap of underestimating capitalism as well. He wrote that Hitler was apparently not that concerned when America entered the war, because he thought American arms manufacturers would take years to ramp up. For example, America had barely any lens-making industry, lenses being needed for every gunsight, and it was well known in Germany that a long apprenticeship was needed for skilled lensmakers. But the Americans, whose capitalist system had freed them from medieval guild regulations, turned farm boys into lensmakers in a few weeks and produced arms at a stunning rate.
Back on the Left, the Ehrlichs, who in the late 1960s predicted major world famines before 2000, and the Club of Rome who predicted major resource shortages in the same timeframe, underestimated the ingenuity and technical inventiveness of the system, and its ability to ramp that process up and deliver new solutions when presented with the financial incentives to do so. Yes, a lot of small farmers got destroyed and driven to suicide by the Green Revolution, but famine on the predicted scale was averted. And mineral resources all got cheaper, as price incentives worked to find new sources of supply and replace items that were getting too expensive with functional alternatives. (See here for a piece about Julian Simon, the saint of sustainable capitalism: if you can stomach the hagiography, please read it, as the argument is still one that has to be understood).
Radical feminists and gay liberationists, like the most radical dreamers of the civil right movement before them, also had their moments of seeing their own revolutions as the ones that would change the whole capitalist system. And there is little doubt that they would if taken to their logical conclusion that every person must be treated as a sacred being (or in atheist terms as someone equally worthy of respect). But the system was astonishingly adaptable, and despite the continued presence of glass ceilings, it embraced identity politics enough that the more radical energy of those movements has been dissipated or channeled into more reformist goals (what 1970s gay liberationist would have thunk that gay marriage would be the rallying cry?).
Capitalism is above all pragmatic. It runs on the traditional beliefs of its own adherents, be they anti-woman, racist, homophobic, contemptuous towards the working stiff, militaristic, pro-monopoly, free market, anti-regulation, or anti-ecological, right up until such time as the system understands that the bottom line is being harmed by these neolithic attitudes. Then it throws over as many as necessary to continue on. And this is assisted by the education of the capitalist class themselves, whose gay children confront them, whose women become feminists, and whose leading lights see the light in one way or another.
Diamond, the prophet of collapse, is seeing and telling us that in the greatest challenge of our time, for the sustainability of civilization, capitalism will again be, and indeed is already becoming, more radical and progressive than we expect. We only do ourselves a disservice as progressives if we imagine otherwise.
Something I find attractive about Diamond in this piece is that he doesn’t demonize the corporate executives themselves. He has met and worked with individuals he knows to be decent people with a desire to sustain civilization, people who are not entirely taken over by the Dark Side as in some kind of left myth about what a corporate bigwig must be like. One of the attractive aspects of the Christian socialists who founded the British Labour Party was that, unlike their Marxist comrades, they tended to see members of the British ruling classes and employers as misguided co-religionists whose Christian compassion could be appealed to, which proved an effective strategy for working with the few who were able to respond.
So let’s imagine that the big corporations turn towards sustainability and build hope and energy towards that goal. Progressives will push them harder. As we replace GDP with measures of true welfare and sustainability, we will find ourselves able to pass legislation close to, if not matching, the dreams of a Social Responsibility Amendment (SRA) to the U.S. Constitution that the Network of Spiritual Progressives has been promoting (see point 3 in the Spiritual Covenant with America).It is not hard to imagine, if we have time enough for an orderly evolution to take place, that some kind of some kind of humanistic, ecophilic regulated market system, will emerge.
And as I wrote above, “The ideologues of the free market will be defeated, but so will the utopian prophets of the Left, as usual.” The sheer pragmatism of capitalism, its bottom line readiness to ditch the conservative ideologies of its own proponents, will enable it to preserve its greatest assets, which are its innovativeness, productivity and adaptability.
Some century or so down the line, money will still be hugely important as an incentive, even though it will share the pool with social goals built into the system. Selfishness will still be hugely important as a motivation for human actions, even though it will be channeled by cultural expectations into different outcomes. We will get status less from material display and more from social and spiritual display: that is, playing the best tunes, growing the best veggies, being the best node in the community, radiating the best warmth, for these are the nourishments we will be looking to, selfishly and cooperatively. It won’t be the republic of heaven on earth, the dreamed-of Caring Society. The prophets will be still be as disappointed as they are today. But it will not be Collapse either. That’s the possibility I see in Diamond’s article.



Wow. I could not disagree more with Dave Belden’s rave reviews of Jared Diamond’s blather. Where to start? Let me summarize Dave’s main points:
* critics have failed to appreciate capitalism’s resilience, adaptability and powers of survival
* a humanistic, regulated market system will emerge
* global “weirding” will somehow move capitalists on to an altruistic track
* the “win-win” aspect of capitalism improving the living standard of workers has undermined socialism
* Even Hitler underestimated Capitalism
* Capitalism has largely prevented global famine and catastrophes, as predicted by the Club of Rome
* Capitalism pragmatically succeeded in co-opting feminism, gay rights, black power; even capitalists have gay children, etc.
* Capitalism will become radical and progressive
* The GDP will be replaced by measures of true welfare as indicators of success
* A humanistic, ecophilic, regulated market system will emerge
* Capitalists will prove ready to ditch conservative ideologies
* The profit motive will have to share the stage with social goals
I wish I could take each one on, point by point. But Dave doesn’t offer any arguments for these crazy claims. Capitalism will become “radical and progressive?” It will become a “kinder, gentler” form of profit seeking… Because?
This debate is an old one. An example of the arguments for a progressive form of corporate citizenry can be found in an article by Peter Pruzan, entitled “The Question of Organizational Consciousness: Can Organizations have Values, Virtues, and Visions?” Capitalists of course thought this was complete horsepuckey, a great example being Milton Friedman’s “The Social Responsibility of Business is to Increase its Profits.”
Dave, without offering any rationale for Big Business adopting “radical and progressive” social views (other than the meaningless adjectives “resilient” or “pragmatic”) might as well have proposed a new set of Laws of Physics in which the gravitational constant and properties of electrons are more to his liking. What principles, motivations, profit, advantage, or pressures are going to make businesses our new best friends?
I subscribe to the view that our society is (unfortunately) merely a pale reflection of our economic system. “The business of America is business,” as Coolidge famously observed. That’s it. Forget a Social Contract. We don’t believe in one. Business is the only reality. It creates the rules, sets the agenda, fields and finances the candidates, and turns the revolving doors of business and government. It defines most of our social and human expectations. This is such an overwhelming truth in government, politics, business, and society that to expect Big Business to change its spots for no reason is not only a huge stretch. It’s self delusion.
Some of Dave’s observations are just plain wrong. He writes that capitalism has been successful in sharing its wealth with the working class, thus creating a “win-win” situation which undermines Capitalism’s critics. Wouldn’t that be nice if it were true? For the most part, however, whatever gains the working class made in the Fifties and Sixties has been rewound, reversed, and retracted.
Capitalism as “resilient?” Is Dave speaking of the same Capitalism that necessitated a bailout by every Western government? Unfortunately these crises are periodic – like the hospitalization of an individual for a psychotic breakdown. It’s going to happen over and over again. Resilient?
If any sea change is necessary, it is not the improbable emergence of an inexplicably altruistic form of Capitalism; it is the redefinition of a form of government that actually looks at the reasons that we live together in a society. Not as a weak reflection of whatever the realities of the economic system are, but as a clear vision of a Social Contract that binds us.
I can see why you would think I was writing capitalism “will” do this and that but I was trying to say “could.” Maybe that’s too small a difference anyway.
Resilience: maybe you haven’t noticed that we still have a capitalist system? Did I miss the revolution, did I miss Hitler’s victory in WWII, did I miss the world famines and resources shortages predicted by the Club of Rome?
Is it not progressive when firms give spousal benefits to gays, hire and promote formerly ostracized minorities, cut their carbon footprint, pursue safety policies? No, because they only do it for monetary gain? But that was my point. That was what I meant that the left will continue to be disappointed, but the system may squeak by, by adopting reforms that will enable it to do so, as it has done in the past. What we have now is a hybrid system, where some industries are publicly owned, some not, and all kinds of regulations (not enough but substantial nonetheless) protect workers rights and the govt provides social security etc. These things are often a pittance compared to what they could be, but they are a great deal better than what there was 100 years ago. I was not so much praising capitalism as speaking to how it has managed to squeak by. More later. In a rush now.
A further comment, in between cleaning the bathroom and running to get the week’s groceries. I posted a few days back a quote from the UN that “more than 24,000 children under the age of 5 die every day from preventable causes like pneumonia, malaria, measles and malnutrition. Nearly 200 million youngsters are chronically malnourished, more than 140 million are forced to work, and millions of girls and boys of all ages are subjected to sexual violence.” This is what I mean about capitalism squeaking by and the Left and any compassionate person in their right mind being unhappy about it: squeaking by means the system still in place amidst many horrors. My question is why it’s still in place, and the answer that I don’t think the Left usually wants to look at is what is working about capitalism, why it manages to survive. And if you think it’s going to collapse tomorrow, think about all the people who were sure of it in their day and ask why they turned out to be wrong. It’s not just about repression, it’s about reform, that great enemy of revolution, and capitalism’s proven capacity to reform itself enough to keep going, That doesn’t mean it will continue to do so forever, but it does mean that it’s worth paying attention when a prophet of collapse like Jared Diamond thinks he sees the system reforming itself in certain critically important ways.
Personally, Dave comes to the point .
What’s important is to know why the capitalist society could co-opt so many anti-capitalism trends, which cannnot be observed by the radical Left.Surely,”the left will continue to be disappointed, but the system may squeak by, by adopting reforms that will enable it to do so, as it has done in the past.”
Why?
“Some century or so down the line, money will still be hugely important as an incentive, even though it will share the pool with social goals built into the system. Selfishness will still be hugely important as a motivation for human actions, even though it will be channeled by cultural expectations into different outcomes.”
No offense, but Diamond’s article is mere apologia and any left-environmentalist should see it as such. It is pure doublespeak: Wal-Mart is paving the way for a greener future while simultaneously driving the consumerism that is killing this planet, and Coca-Cola is preparing “water neutral” strategies while it takes water rights away from local peoples all over the planet.
No offense taken, and you make a fair point. I essentially agree with you. I am not suggesting left-environmentalists should convert to Diamond’s way of thinking. I am saying something more complex, which starts by saying this: during a century when many socialists thought capitalism would self-destruct and socialism rise from the ashes, what instead happened was that capitalism managed to do enough internal reform to survive and delivered enough benefits to take the energy out of the popular passion for socialism. So we now have a hugely unequal world with horrific social consequences but a lack of passionate believers in the possibility of a truly caring society. From a prophetic left point of view the people of the rich countries have been bought off. From a conservative point of view — which has sparse belief in the possibility of creating a truly caring society and is wary that such believers may create something worse, not better (exhibit: Soviet Russia) — the people of the rich countries have already acquired a better life than their ancestors dreamed of and the people of the poor countries just have to be patient as it will come to their descendants eventually. But the fact is that — sustainability issues aside — there IS a lot that’s better about life for most people in rich countries, and a great deal of what is better was in fact won by capitalist concessions to progressive activism. The progressives saved capitalism by reforming it without thoroughly changing it.
if that’s a true enough description of what happened so far to socialism, then left-environmentalists need to think seriously about the extent to which this could happen again with regard to sustainability. Is there enough reformist energy in the progressive world and enough ability to respond in the capitalist world to save not capitalism, in this case, but our very civilization? FDR told his business supporters that he passed the New Deal to save capitalism. If in the coming decades it comes to a point that the corporate world sees that now it’s not just a case of saving capitalism but of saving our whole complex civilization, will they accept major reforms? Left environmentalists say: no they won’t. Diamond is saying: maybe they will. I am saying: take Diamond seriously. What the activist implications are, I’m not sure. Ramping up the pressure is needed either way. Calling greenwashing out for what it is is critical.
Sustainability has always been about sustaining the environment to the point necessary to keep the capitalist economic system viable.
The bigger question that you address, is capitalism flexible enough and the progressive movement strong enough to steer the economy in a direction that does not lead to environmental destruction, my response would be no. This is the new theory of the internal crisis of capital, no longer merely a Marxist idea, but one of the environmentalist: capitalism’s focus is always too-short term to fully address the long-term problems that it causes [as the financial crisis has shown]. The state and the enviro movements are insufficient to blunt this internal contradiction to capitalism. Why? Because it would require unsettling the very grounds of capitalism, in particular in today’s age when businesses operate to show earnings on their next quarterly report.
As Kyoto and now Copenhagen show, states are incapable of establishing the game-changing rules necessary to stop climate change in its tracks. They have no E-brake. The interests of individual nations, all wrapped in the ideology of development and thus unwilling to make the concessions necessary, mean at best we will get a facile agreement. Reducing gasses by 20% by 2050 might keep the sea level a meter lower, but it will do nothing to blunt the overall wreckage.
If we want to have hope that capitalism can do something to save us, it is in its innovative capacity, to address the symptoms of global warming that it created in the first place. This is one of capitalism’s specialties: create a need and then sell you a product to answer it. Surely a new raft of technologies will emerge that will address these issues, and a turn to public works projects from the state. This, of course, will benefit the well-off in the rich nations (the 9th ward will always be treated as if it were in Nigeria), while the rest are left to suffer for our excesses. This has been the march of history for the last few centuries, and there is no reason to believe it will change any time soon.
Thank you for sticking with this discussion. You may very well be right. If you imagine a world in, say, 100 years time (or any other timeline you choose) that is in a very significant way past the danger point to both human civilization and most species on earth currently, how do you envisage us getting there? Are you hopeful that such a scenario is possible?
I’m pleased to see this piece on Tikkun Daily.
Dave thoughtfully articulates a reality that neither the political and economic Right nor the “Utopian prophets of the Left” like to acknowledge. As someone who has been involved, via his father, with conservation work for over twenty years, it is clear to me that the middling compromise, one that is satisfying to neither the Left nor the Right, is generally what one gets. (And maybe that’s not such a bad thing? Certainly, this is what Dave’s piece asks.)
Conservation, as Aldo Leopold famously argued, is about making choices. It is distinct, therefore, from preservation. Many environmentalists don’t understand that distinction, so we hear chants of “Save the Whales!” instead of chants of “Save the Blue Whale, but allow sustained hunting of Minke!” Of course, as a Utopian Leftist myself, I’m happy to hear the former chant; I’d like to see all whale hunting curtailed, but the realities are usually more grey than we ideologues care for.
The important thing for us to remember, as Dave’s “prophets of the Left” is that we are vital voices, a balance against the demands and philosophies of those like Milton Friedman. Sure, we’ll still be disappointed, but if the the world and civilization are still stumbling along….well, that’s a marvel in itself, is it not?
I can only imagine the first step, which is educating the people as to the basis and effects of capitalism. First, its basis lies in human action, thus we are capable of directing our economy elsewhere. Secondly, the ideologies of property, growth and development are responsible for human inequalities and environmental damages. The American people, for instance, consider property to be as natural as butterflies, growth to be universally beneficial and desirable, and development as that thing which backwards economies must undergo so as to hop on board the global ship on the rising tide. These “common sense” ideas have been subjected to criticism for decades, and yet still they still prevail. Sadly, like all sea changes, it will likely require a great crisis to shake free our ability to think from the structures that constrain us.
You are half right. Our capitalist, media-controlled system is flexible, resourceful and able to block major changes by a constant series of smoke screens, distractions, and fear plays. Those who say that the US healthcare system will completely collapse soon are surely wrong. People are easily frightened of death squads, tax increases and “socialized anything”. The media can set us against one another. Jared Diamond is smart but he underestimates the destructive forces in US society.
Diamond cites some smart moves by Wal-Mart, Coca-Cola and Chevron- things that save money for them and have some environmental benefit. Other Fortune 500 companies may be induced to take similar steps with some reduction in environmental problems. However, similar actions won’t happen on a nationwide scale, emissions won’t fall very much, birth rates will not fall at all until we have out and out internal war. The big execs won’t be able to make them happen for several reasons. They can’t command Americans to accept the need to drive less, reduce family size, take mass transit etc. for many reasons. Our tremendous infrastructure deficits and low disposable income for average Americans leaves them in a hammerlock. They can’t afford to pay for mass transit, they don’t like the idea of waiting for a bus or subway and small businesses won’t be able to provide bus passes for employees any more than they can afford the cost of good health insurance. Americans have been whipped into frenzies of hatred and suspicion- not by the Fortune 500, but by religious groups and the media – like Lou Dobbs- they won’t accept reductions in Medicare coverage and our idiotic Congress will continue with Potemkin benefits and massive military spending- our defense budget is actually higher than it was in 2005. There isn’t money for education and infrastructure and better healthcare even though these things are needed. No American political party promoting cutting the defense budget in half can get elected- because of the frenzied hatred, suspicion, etc. People really believe in American exceptionalism. People will drive without insurance and continue to flock to ERs.
Norway and Scandinavian countries will follow a much more enlightened policy. However, the Western hemisphere, China and many other countries won’t be able to reduce greenhouse gas emissions much, even though many Fortune 500 execs would like to see it happen. Our emissions will affect the enlightened Scandinavians- they will experience hardship and decline in living standards, but can probably avoid violent internal conflict. It’s not likely that the US can avoid violent conflict, even if Lou Dobbs were muzzled. We have a long history of violence and machismo, and are among the world leaders in per capital murder rates. We have more people in prison than any other country; most of them come out even more vicious and anti-social than they went in. Talking about the need for population control strikes most Americans as crazy. Diamond overestimates the ability of the big corporations to promote virtuous behavior- they can order it from their employees but not from the rest of us. Maybe Bill Clinton and some Marxists say, “it’s the economy, stupid” but I say “it’s the culture, stupid” – the corporations have some responsibility for encouraging the divisive and atomistic factors in US life, but the point is not how we got here, but how these interlocking messes (including poor education) reinforce each other
I still think Dave’s views of Diamond’s are too favorable, but to be fair he has not misrepresented Diamond:
http://www.nytimes.com/2009/12/06/opinion/06diamond.html?_r=1&em=&pagewanted=all
Diamond ends this NYT piece with a business-friendly recap of What Business Wants:
“My friends in the business world keep telling me that Washington can help on two fronts: by investing in green research, offering tax incentives and passing cap-and-trade legislation; and by setting and enforcing tough standards to ensure that companies with cheap, dirty standards don’t have a competitive advantage over those businesses protecting the environment.”
Business has always been willing to take the research dollars, but even now with the Obama administration we still need government agencies with sufficient will and which are powerful enough to actually set and enforce these standards.
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