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salvaged capitalism, will, in all likelihood, not be able to repeat the task. We
say this because there can be little hope of constructive results from a tool
based on assumptions to meet a time in the world that was the antithesis of
the situation that actually exists in today's world.
A Growing Economy, a Planet in Peril
Conventionally, classic macroeconomic policy in the current high-unem-
ployment morass would, at this point, sound a familiar refrain: Stimulate the
economy and promote economic growth. Perpetual economic expansion is
conventionally seen as the surest route to save us from the trap of stagnation
and keep open the door to continual increases in the standard of living for each
citizen as worker/consumer. But this Holy Grail of uninterrupted prosperity
carries two prerequisites. First, there is need for a constantly increasing invest-
ment of capital (and, as we have seen, infusions of energy) to support the bio-
physical requirements imposed on the environment—both natural and social.
Second, technological innovation must support constant gains in worker
productivity. In short, both the
quantity
and
quality
of capital must respond
accordingly. And even should these conditions be possible, and all informa-
tion about planetary limits dictate they are not, the ironies of the Capitalist
Scenario tend to powerfully restrict, rather than expand, employment, and
tend to drive wages down, not up.
Two enlightening side comments are appropriate at this juncture. First,
this is very close to the underlying theory behind the economics (not the pol-
itics) of Karl Marx. The theory sets up and explains—virtually requires—the
classic conflict between capital and labor (owner and worker, proletariat and
bourgeoisie) that has characterized much of our economic history. Second,
in the current world of economic globalization, this theory both supports
and explains the controversial outsourcing of jobs, as capitalistic decision
makers seek not only to increase capital relative to labor with the unerring
assistance of new technologies but also to replace expensive workers directly
and immediately with cheaper labor. Exploring these topics in any depth
would require separate topics.
Finally, there is no justification for picking on Keynes. He was a genius
whose innovative mind precipitated an economic revolution, and he was
correct for his times. The challenge is ours to realize that we live in a differ-
ent world and that a different and compatible new worldview must emerge.
First, however, some strictly economic comments are in order. Ironically,
labor must be seen as the superabundant resource and must be used exten-
sively with the scarce capital resources of the biosphere—including the
environment. Favored processes must be labor extensive and capital sav-
ing—precisely the opposite of past capitalist ideology.
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