I took part in a luncheon discussion on the ‘post-carbon’ economy. This very term, ‘post-carbon’, is an obviously optimistic, future-forward theme in a time when oil and coal consumption is surging. Finding consensus here towards far-reaching solutions feels like a distant hope. In fact, our looming ecological crisis mirrors our present economic crisis in disconcerting ways.

Both these crises, for instance, happen to be triggered by market failure. The absence of any accounting when it came to environmental costs, and our failure to price natural resources into the economy have brought about the climate crisis. The financial collapse represents the same case of ‘disastrous optimism’ - our overlooking of ‘negative externalities’ in financial reporting, balance sheets and risk assessment. And in both these cases, we have tried to privatise profits and socialise losses. Continue reading "The parallel crises of our times"