Pricing the future at a discount.
Climate change – the perfect economic disaster.
When did we first hear about climate change and global warming?
Well, the scientists knew, the politicians knew, and our parents could have known about it – and about human responsibility for it – as early as the 1930’s !
So why haven’t we acted to make the changes to save us from ourselves?
An introduction from the New York Times article, as posted by a colleague on FB:
From the article “Losing Earth: The Decade We Almost Stopped Climate Change”. Worth reading in its entirety. If you can stomach the tragic enormity of it…
“Could it have been any other way? In the late 1970s, a small group of philosophers, economists and political scientists began to debate, largely among themselves, whether a human solution to this human problem was even possible. They did not trouble themselves about the details of warming, taking the worst-case scenario as a given. They asked instead whether humankind, when presented with this particular existential crisis, was willing to prevent it. We worry about the future. But how much, exactly? The answer, as any economist could tell you, is very little. Economics, the science of assigning value to human behavior, prices the future at a discount; the farther out you project, the cheaper the consequences. This makes the climate problem the perfect economic disaster. … Michael Glantz, a political scientist who was at the National Center for Atmospheric Research at the time, argued in 1979 that democratic societies are constitutionally incapable of dealing with the climate problem. The competition for resources means that no single crisis can ever command the public interest for long, yet climate change requires sustained, disciplined efforts over decades. And the German physicist-philosopher Klaus Meyer-Abich argued that any global agreement would inevitably favor the most minimal action. Adaptation, Meyer-Abich concluded, “seems to be the most rational political option.” It is the option that we have pursued, consciously or not, ever since. These theories share a common principle: that human beings, whether in global organizations, democracies, industries, political parties or as individuals, are incapable of sacrificing present convenience to forestall a penalty imposed on future generations. … If human beings really were able to take the long view — to consider seriously the fate of civilization decades or centuries after our deaths — we would be forced to grapple with the transience of all we know and love in the great sweep of time. So we have trained ourselves, whether culturally or evolutionarily, to obsess over the present, worry about the medium term and cast the long term out of our minds, as we might spit out a poison. Like most human questions, the carbon-dioxide question will come down to fear. At some point, the fears of young people will overwhelm the fears of the old. Some time after that, the young will amass enough power to act. It will be too late to avoid some catastrophes, but perhaps not others. Humankind is nothing if not optimistic, even to the point of blindness. … Human nature has brought us to this place; perhaps human nature will one day bring us through. Rational argument has failed in a rout. Let irrational optimism have a turn. It is also human nature, after all, to hope.