Essay about Economics And The Natural Capital And Climate Security

931 Words Sep 25th, 2016 4 Pages
Mainstream economics have failed to manage resources. From record temperatures in Moscow, melting snow caps in Greenland, water scarcity in Saudi Arabia, air pollution in Beijing, desert merging in China and more, the earth 's resources have depleted beyond the bliss of ignorance. Economics aspired to increase Gross Domestic Product (GDP), manage underdevelopment and environmental degradation but the tools employed - free market, judicious public policy, and globalization of capital, labor and technology have failed our environment and global human development. Ecologists advocate for different measures of growth to factor in the natural capital and climate security. We need to incorporate global human development policy tools into economics by fostering leadership and cross-discipline collaborations like economics, ecology, and geopolitics.

At the heart of mainstream economics is the theory of comparative advantage - the ability to produce at a lower opportunity cost. Because of this theory, oil-rich countries are over producing oil, fishery-rich countries are overfishing and agriculture-rich countries etc. as if natural resources are infinite. To prevent civilization collapse, the World on Edge (WOE) reading advocates for the transition from fossil fuels by adjusting price mechanisms - decreasing income tax and increasing carbon tax, i.e. increasing marginal costs. This alone is a poor policy decision, by increasing carbon taxes, most of the cost will eventually…

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