17 January 2013

Growth and the Destruction of the Environment: Do We Have any Right to Make These Choices for the Chinese?



*Picture taken from the NYT "Room for Debate" page.  Find the Link here. 

The argument about the choices faced by societies between economic growth and environmental damage becomes increasingly important as much of the non-Western European world, most notably China's pace of industrialization speeds up.

At this point it has become almost cliche to pick on the New York Times for running ignorant economic analysis and presenting it as fact. This time they at least had the good sense to relegate the ignorance to the opinion section. 

There are issues with each of the four individual arguments made in this forum published on the Times website about economic growth.   In this "debate" however, I want to point out what was not included in the arguments, that is, an acknowledgment of the historical context, rather than critiquing what was written. 

So often (almost always) in arguments from westerners about the "proper" path for growth in the developing world, especially in China, the argument is made that there needs to be a balance between growth and environmental sustainability.  We are far more educated about the environmental and health costs of industrial pollution than any generation before us.

There are (of course) two sides to this growth coin.  The positive way of viewing this argument is that countries that are developing now, can, and should, learn from the mistakes of The US, Western Europe and the former Soviet Union.  China "learning" from our "mistakes" and slowing growth to preserve the environment is a popular stance in the west.  Clean, slow growth in China is a win-win for the west.  They grow slower, and thus pose less of a threat to our global financial dominance while doing so, and the world stays pretty and green so that the wealthy among us can enjoy it on our vacations.  

The other side of this coin, which these arguments by westerners always seems to miss is the historical context of US and Soviet development.  It was largely through unregulated (and massively polluting) industrial growth that many of the world's leading economies were able to become wealthy enough to have the wealth and time to care about environmental degradation.  

I am not arguing that rapid growth at high environmental cost is path China should take (In my opinion).  What I am arguing is that those of us living in wealthy countries that developed at such a high environmental cost that at certain points in our history our rivers were so polluted as to become flammable, are not in a moral position to tell a currently industrializing nation not to pollute at the cost of economic growth.  Just perhaps, the Chinese and other developing countries should have the right to make their own decisions about the trade off between cheap growth and environmental destruction?  Or at very least, they should not have to be told by a bunch of wealthy westerners to "do as we say, not as we did". 

12 January 2013

3D Printing: Possibly a Fundamental Change to the Economy?

Both NPR in general and their podcast Planet Money (story here) have had numerous stories recently about the newish technology of 3D printing.  These printers are essentially duplicating machines a la Star Trek that use raw materials (matter) to create objects by running computer programs and essentially assembling complex objects by combining raw materials based upon computer programs.  The hope for development is that this technology will eventually be able to make organs, bones, etc. as well as complicated manufactured goods.

Health and well being implications aside, I found something remarkable in the Planet Money podcast.  They  mentioned that the 3D printing technology will dramatically lower barriers to entry in manufacturing, as the machines are not terribly expensive.  They of course (and are still in their early stages) cost thousands of dollars, but no millions of dollars. Even more remarkable in the story there was an open, honest and unabashed reference to Karl Marx.  The argument made is that in modern manufacturing the steps from prototype to producing for the market will no longer require massive capital investments just to start out. It could become possible to start a manufacturing firm with just the investment in a 3D Printer.  I couldn't believe my ears hearing Planet Money openly state that "to some degree this innovation of modern capitalism has the potential to put ownership of the means of production into the hands of the masses".  Essentially manufacturing capital could become accessable to a "middle class" member of society.  Using another definition of class, members of the proletariate may be able to afford high technology capital for manufacturing start up.  

I'm not suggesting that there is a major shift in class structure coming immediately out of 3D printing, there will still be owners and workers, and exploitation  present,  I don't think this means the end of capitalism or anything that dramatic, in the world of 3D printing, but the key point made in the story, was one common in  classical Marxism: Ownership of the means of production in highly developed manufacturing could become much more wide spread, thus less concentrated in the hands of the very wealthy.

If nothing else, I see some potential here for a reduction in the massive (and worsening) wealth inequality problem in the developed world. Our massive inequality problems stem in part from a system in which massive amounts of capital are required to start any kind of new product launch.  Is it possible that with 3D printing  that capitalism entrepreneurship  has innovated a product that will put ownership of the means of production into the hands of the masses?  Probably not...but it is a very intriguing idea!

04 January 2013

Farewell O Great Teacher

I am sure I will have much more to write about this in the future:
For now... It saddens me greatly to post a farewell to wonderful Economist, Marxist, Teacher, Mentor, Adviser and Friend, Stephen Resnick.  Steve passed away yesterday, January 2nd 2013. Contrary to everything he has taught me about overdetermination, no other single human being has had such an impact on my life.  For the most part words fail me at the moment, but I wish the best for Steve's family and for him, in whatever (if anything) comes next.  This blog will be filled with writing remembering Steve and his work in the coming weeks/months/years, but for now, I love you Steve, You will be remembered fondly and missed terribly. 
Thank You for everything!

16 December 2012

My Online Marxian Economics Class Starting Tomorrow

Just to let everyone know:
I have a couple of seats still in the University of Massachusetts Continuing Education version of Economics 305, "Marxian Economics" that is starting tomorrow, Monday the 17th.
This is the famous Resnick Marxian class, I am just the facilitator / grader.   You get the Resnick video lectures.  This is a great introduction to the subject matter that has done more than any other in shaping my career! 
Email me at
jamiehls@gmail.com
if you would like more info.