An economy that works -- without "jobs"

Cleveland, Ohio, home of the Evergreen Cooperatives.
.From Wikimedia Commons

From Frank Joyce, President of the Michigan Coalition for Human Rights, an argument that widespread, permanent unemployment in America is creating a new underground economy based on new forms of labor and production.

Examples are to be found, Joyce points out, in old Rust Belt cities like Detroit.

The stark reality is that the problems are structural and cumulative. The old job system isn’t coming back to Detroit. Ever. The stark reality is that Detroit is not some one-off fluke. Detroit is just the canary in the coal mine. Virtually every dynamic that was in play in Detroit over the last several decades is now at work planet wide. Paralyzed “leadership”; persistent racism; and growing inequalities of wealth, income and power and shrinking democracy aren’t just features of Detroit. They apply to the nation and many other places throughout the world.  

Help from the system that is failing is definitely not on the way. All the superficial debates about high taxes or low taxes, individual mandates or no individual mandates, big government or small government, contraception or no contraception will not put Humpty Dumpty together again.  

For many this is understandably both depressing and disorienting. But for others it is liberating. “Solutionaries” are creating a different kind of economy. There may be no jobs, but there's plenty of work to be done. Victimology is not welcome here.  

Since a Reimagining Work conference held in Detroit last fall, new economy energy and enthusiasm have intensified. There are growing efforts in food production and distribution, education, media, supporting the formerly incarcerated, transportation, community policing and manufacturing. 

Wright describes the emergence of worker-owned cooperatives as a key response to poverty and the disintegration of the conventional economy. Wright points to Cleveland's Evergreen Cooperatives as a notable example. They're a pilot project launched by universities, hospitals, and non-profits in Cleveland, with help from the city. Only a few dozen people work there for now, but the participants hope the project will offer a model for future work programs that can be scaled up. 

Since there is likely never going to be a second New Deal, or anything close, people have to help themselves locally. Models for how to do that exist. They will be needed as the corporate-dominated mainstream economy continues to leave more and more Americans behind.  

Drought slashes Mexico food production 40 percent

Drought relief station, Chihuahua, Mexico, April 2012
From New America Media

From Climate Progress, citing Latin American sources:

While the Texas drought has gotten much of the attention in this country, what has happened in Mexico is equally devastating. Since Mexico is projected to suffer even worse warming-driven Dust-Bowlification in the coming decades — and that will certainly have consequences for the United States — it’s worth looking in a little more depth at what’s happening to our neighbor to the south:

The severe drought affecting 22 of Mexico’s 32 states has caused a 40 percent drop in agricultural production, opening the way for food shortages over the next few months, the National Peasants Confederation, or CNC, said….

The drought has ravaged Indian communities, destroying crops and forcing thousands of peasants to leave their ancestral lands and head to the cities.

“As of last November, corn production was at barely 42 percent of the volume projected for 2011, and bean production was only 41 percent,” CNC president Gerardo Sanchez said.
Corn and beans are staples in the Mexican diet and shortages could lead to speculation, sending the prices of these commodities soaring, the CNC said.

“Of the 4.2 million people who fell into food poverty from 2008 to 2010, nearly 75 percent (about 3 million)” live in rural areas, the CNC said.

Species extinction foreshadows threat to human food supply

Honey bee at work, from Wikimedia Commons.

According to the 2007 Fourth Assessment Report of the Intergovernmental Panel on Climate Change, current models suggest that at least 40 percent of species in nature will be driven extinct by the year 2100 at our current emissions pace (to four degrees Celsius or more above pre-industrial levels).

From Grist and the Pesticide Action Network, an example of how the loss of a single species can threaten the viability of an entire sector of human agriculture.

Although news about Colony Collapse Disorder (CCD) has died down, commercial beekeepers have seen average population losses of about 30 percent each year since 2006, said Paul Towers, of the Pesticide Action Network. Towers was one of the organizers of a conference that brought together beekeepers and environmental groups this week to tackle the challenges facing the beekeeping industry and theagricultural economy by proxy.

“We are inching our way toward a critical tipping point,” said Steve Ellis, secretary of the National Honey Bee Advisory Board (NHBAB) and a beekeeper for 35 years. Last year he had so many abnormal bee die-offs that he’ll qualify for disaster relief from the U.S. Department of Agriculture (USDA).

In addition to continued reports of CCD — a still somewhat mysterious phenomenon in which entire bee colonies literally disappear, alien-abduction style, leaving not even their dead bodies behind — bee populations are suffering poor health in general, and experiencing shorter life spans and diminished vitality. And while parasites, pathogens, and habitat loss can deal blows to bee health, research increasingly points to pesticides as the primary culprit.

Hansen on national climate policy

New Orleans after Hurricane Katrina, September 11, 2005
From U.S. National Weather Service.

 

From yesterday's New York Times, James Hansen, director of the NASA Goddard Institute for Space Studies, on what the correct overall approach to a national climate change policy would look like:

We need to start reducing emissions significantly, not create new ways to increase them. We should impose a gradually rising carbon fee, collected from fossil fuel companies, then distribute 100 percent of the collections to all Americans on a per-capita basis every month. The government would not get a penny. This market-based approach would stimulate innovation, jobs and economic growth, avoid enlarging government or having it pick winners or losers. Most Americans, except the heaviest energy users, would get more back than they paid in increased prices. Not only that, the reduction in oil use resulting from the carbon price would be nearly six times as great as the oil supply from the proposed pipeline from Canada, rendering the pipeline superfluous, according to economic models driven by a slowly rising carbon price. 

But instead of placing a rising fee on carbon emissions to make fossil fuels pay their true costs, leveling the energy playing field, the world’s governments are forcing the public to subsidize fossil fuels with hundreds of billions of dollars per year. This encourages a frantic stampede to extract every fossil fuel through mountaintop removal, longwall mining, hydraulic fracturing, tar sands and tar shale extraction, and deep ocean and Arctic drilling. 

President Obama speaks of a “planet in peril,” but he does not provide the leadership needed to change the world’s course.

IMF study acknowledges peak oil as energy factor for next decade

Fawley Oil Refinery, United Kingdom. December 17, 2005
From Wikimedia Commons.

A report published under the auspices of the International Monetary Fund concedes that geological conditions will have an influence on the future price and availability of oil, possibly in the next decade. The report does not represent the views of the IMF, only the authors. But it is another indication that talking openly about physical limits on oil supply, rather than assuming they will expand indefinitely for all time to meet all human needs, is no longer taboo in mainstream circles.

The abstract of the report:

We discuss and reconcile two diametrically opposed views concerning the future of world oil production and prices. The geological view expects that physical constraints will dominate the future evolution of oil output and prices. It is supported by the fact that world oil production has plateaued since 2005 despite historically high prices, and that spare capacity has been near historic lows. The technological view of oil expects that higher oil prices must eventually have a decisive effect on oil output, by encouraging technological solutions. It is supported by the fact that high prices have, since 2003, led to upward revisions in production forecasts based on a purely geological view. We present a nonlinear econometric model of the world oil market that encompasses both views. The model performs far better than existing empirical models in forecasting oil prices and oil output out of sample. Its point forecast is for a near doubling of the real price of oil over the coming decade. The error bands are wide, and reflect sharply differing judgments on ultimately recoverable reserves, and on future price elasticities of oil demand and supply.