Multiple Crises as Symptoms of an Unsustainable System
Transcript of Multiple Crises as Symptoms of an Unsustainable System
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Multiple Crises as Symptoms of an Unsustainable SystemAuthor(s): Fred MagdoffSource: Review (Fernand Braudel Center), Vol. 33, No. 2/3, FOOD, ENERGY, ENVIRONMENT:CRISIS OF THE MODERN WORLD-SYSTEM (2010), pp. 103-129Published by: Research Foundation of SUNY for and on behalf of the Fernand Braudel CenterStable URL: http://www.jstor.org/stable/23346878 .
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Multiple Crises as Symptoms of an Unsustainable System
Fred Magdoff
I. CRISES EVERYWHERE YOU TURN
The
world is facing a number of severe and extraordinary si
multaneous crises—unprecedented in human history. These in
clude food, energy, environmental, economic, and imperial crises.
There is inadequate access to sufficient food, quantity and quality, for many people now (at least 1 billion people suffer hunger and
many more are in a state of food insecurity) and for a growing
global population. A relatively new development is the large level
of obesity in the U.S. and a number of other countries, partially caused by inexpensive and addictive junk food, with severe human
health repercussions. As supplies of liquid fuels become tighter relative to demand, conducting agriculture and other essential hu
man endeavors during the transition away from fossil fuels in an
era of increasing fuel costs and lower availability will be a huge
challenge. In addition, the continued use of large quantities of coal
to produce electricity and increased use of other fossil fuels wors
ens the environmental crisis. Rampant consumerism of the world's
middle class and the ever-increasing production of more and more
products to sell to consumers degrade the earth's life support sys tems by global warming, pollution of air and water, and decreased
soil health. The financial crisis that began quietly in the summer
of 2007 has turned into a major recession that three years later—
especially for the United States, Europe, and a number of other
countries—shows little sign of abating, although it was declared
over in the summer of 2009. Lastly, there is a crisis of imperial ism that is marked by expanding militarism and wars, but also by a scramble among the already wealthy countries, as well as China
and India, for resources in the South.
review, xxxiii, 2/3, 2010, 103-29 103
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104 Fred Magdoff
This combination of crises facing the earth and its people is
truly unprecedented and has the potential to destabilize both na
tions and alliances. I will not discuss the economic crisis, except
peripherally.1 The economic crisis, of course, interacts with the
other three crises. And it is important to remember that it is caus
ing real distress—in the United States, at the end 2010, there were
over 14 million people unemployed (only 9% of the labor force was
"officially" unemployed, but many had dropped out and stopped
looking), many of whom have run out of their extended unemploy ment benefits—plus another 9 million working part time who want
full-time jobs—plus more than 2 million who have given up looking for work and are not considered part of the labor force. So we have
about 25 million people suffering—losing homes, food insecurity, and going through devastating psychological pain. We have an in
sidious economic/political system that privatizes profits while at
the same time socializing risk incurred by the wealthy and large
corporations. It leaves the working class and much of the middle
class with inadequate protection in hard times.
Nor will I discuss, except tangentially, the imperial crisis, re
flected in the U.S. wars in Afghanistan and Iraq, the build-up of
U.S. military bases worldwide, the increasing asymmetries between
the global North as a whole and the global South, the increasing Chinese military capability, which includes increasing numbers of
navy ships to protect oil shipments from the Middle East. Those
interested in these issues might read Harry Magdoff's Imperialism: From the Colonial Age to the Present (still an important work), and
recent analyses in Monthly Review by a whole host of world-systems
theorists, not least of all Immanuel Wallerstein.
II. THE TRIPLE CRISIS: FOOD/AGRICULTURE, ENVIRONMENT, AND ENERGY
The triple crises of food, energy, and the environment are
clearly related to one another in numerous ways. But what are the
chances that they're all manifestations of a single phenomenon? Most people would loudly exclaim that it just couldn't possibly be
1 For details on the economic crisis, see John Bellamy Foster & Fred Magdoff (2009)
and Fred Magdoff & Michael Yates (2009).
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MULTIPLE CRISES AS SYMPTOMS 105
so. They would argue that each of these has complex origins and
while they certainly have some relation to one another, they each
have multiple causes. It is, of course, true that they have multiple causes. However, they are all related to a single underlying prob lem—a socio-economic-political system that in its very essence, as it
normally functions, breeds crises.
A. The Food and Agriculture Crisis
The food and agriculture crisis facing the world is the result of
a number of long-term as well as short-term trends:
DECLINE IN PER CAPITA GRAIN PRODUCTION
After increasing from the 1950s to the 1980s, the per capita world production of key grain crops has leveled off and then de
clined (figure l)2 so that any shortfall in production due to weath
er or other factors seriously depletes storage stocks and results in
rising prices as speculators, small and large, squeeze the public.
Although total global food production per capita has remained
relatively constant—because of the increasing production of meat,
poultry, dairy products, and vegetables—the poor rely overwhelm
ingly on the basic grains and vegetable oils. Thus, the decrease in
supplies and the increasing diversion of these key foods for other
uses has serious adverse effects on many hundreds of millions of
people.
DIVERSION OF FOOD CROPS TO FEED ANIMALS
There has been a huge increase in the feeding of food crops—
especially corn and soybeans—to animals as the per capita con
sumption of animal products on a world basis has doubled from
the 1960s to 2007 and the quantity of meat produced has increased
400% for the same period.
2 Earth Policy Institute, compiled using 1960-2006 grain data from United States
Department of Agriculture (USDA), Production, Supply äf Distribution, electronic data
base, http://www.fas.usda.gov, updated 12 June 2006; 1950-1959 grain data from USDA, cited in Worldwatch Institute (2001); population from United Nations (2005). Washing ton, DC: Earth Policy Institute, http://www.earth-policy.org/index.phpf/indicators/C54/'.
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106 Fred Magdoff
DIVERSION OF FOOD CROPS—MAINLY CORN, SOYBEANS, AND
PALM OIL—TO PRODUCE "BIOFUELS" OR "AGROFUELS" TO FUEL
AUTOMOBILES INSTEAD OF PEOPLE
About one-third of the 2008 U.S. corn crop was used to make
ethanol—something that makes no sense—environmentally or eco
nomically (Magdoff, 2008).
Figure 1
Per Capita World Grain Production, 1950-2006
Source: Earth Policy Institute.
A GLOBAL PHENOMENON OF PEOPLE MOVING FROM THE
COUNTRYSIDE INTO THE SLUMS OF THE CITIES—WHAT
FARSHAD ARAGHI HAS REFERRED TO AS "dEPEASANTIZATION"
More than half of humanity now lives in cities, with a third of
those (one-sixth of humanity) living in slums. Many people have
been forced from the land by either economic conditions—until
recently especially, the generally low world prices for food—as well
as the push of large-scale farmers and investors to take over more
land (see below). Some of this displacement from rural areas to
slums has been directly caused by neoliberal trade policies pro moted by the United States and the World Trade Organization. An example of a tragedy associated with this is fallout from the
January 2010 earthquake in Haiti. Former President Bill Clinton
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MULTIPLE CRISES AS SYMPTOMS 107
explained that the drive to enhance U.S. exports of food through reduction of import tariffs in poor countries has had a very detri
mental outcome, because local farmers couldn't compete with the
relatively low price of imported foods. In testimony before the Sen
ate Foreign Relations Committee, Clinton said, "It may have been
good for some of my farmers in Arkansas, but it has not worked.
It was a mistake I had to live everyday with the consequences of the loss of capacity to produce a rice crop in Haiti to feed those
people because of what I did; nobody else" (Katz, 2010). The process of depeasantization has increased as land is essen
tially stolen from the poor (or from nature) as its value increases.
Market forces begin to work as capitalist relations enter rural areas
of the third world and their markets become integrated into those
of the rest of the world. A huge amount of cropland is used to grow
soybeans in South America—with approximately 4 million hectares
of Brazilian land owned by foreigners in 2008 (Lehman, 2010); pri vate European corporations have planted the oil seed crop jatropha on large areas in Africa; countries such as China, Egypt, and Saudi
Arabia have purchased or are leasing under long-term arrange ments large tracts of land for production for the "home" markets.
As a former rural dweller in the Philippines explains, "Our family was kicked off our little farm when that big food company took
it over to plant crops to send to Korea [;] we went without land or
food Now they want us out of here and we have nowhere to go" (Cullen, 2010).
THE POOR AND EVEN THE NEAR-POOR DO NOT HAVE ENOUGH MONEY
TO PURCHASE SUFFICIENT (QUANTITY AND QUALITY) FOOD
Food is considered to be just another commodity Hunger prob lems around the world are mainly an issue of poverty. At pres ent, there is sufficient food produced in most countries, and on a
global basis, to feed everyone. Even the severe food crisis of 2008
occurred for reasons other than that there wasn't enough food. As
Eric Holt-Giménez, of Food First, observed: "In 2008 more food
was grown than ever before in history. In 2008 more people were
obese than ever before in history. In 2008 more profit was made
by food companies than ever before in history. And in 2008 more
people went hungry than ever before in history" (Viertel, 2010). Waste, speculation, and the practice of feeding human food to ani
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108 Fred Magdoff
mals or to cars (by way of agrofuels) reduces the amount available
for people and increases the cost of what remains.
THE SCOURGE OF OBESITY IN THE U.S., ESPECIALLY AMONG THE POOR, IS
PARTIALLY A RESULT OF THE RELATIVELY LOW COST (PER CALORIE) OF JUNK
FOOD, STRONGLY PROMOTED FOR A SINGLE PURPOSE—TO MAKE MONEY
There is a lack of quality food available in many urban poverty zones—sometimes referred to as "food deserts" because of the ab
sence of supermarkets. This encourages people to purchase low
quality, but high calorie content per dollar, food at small local stores
and fast food outlets. There is some indication that the widespread use of the sweetener, high-fructose corn syrup, for processed foods
and soft drinks may also be contributing to the problem of obesity
(Parker, 2010).
CONCENTRATION IN THE INPUT SUPPLY AND PURCHASERS OF COMMODITIES
LEAVES FARMERS AT THE MERCY OF MORE POWERFUL SECTORS UPSTREAM
AND DOWNSTREAM FROM FARMING, THE ACTUAL PRODUCTION SECTOR
There are no real "free markets"—which require large numbers
of buyers and sellers—and instead we are left with markets under
oligopolistic influence or control. And concentration in supermar kets (and the growth of large supermarkets even in poor countries)
displaces traditional markets and serves to concentrate land even
more as suppliers to larger markets prefer to deal with few large farms rather than with many small ones.
NEED OF CORPORATIONS TO GAIN MORE PROFITS
CREATES MANY DISTORTIONS
One of these is the large-scale breaking of the cycling of nutri
ents, as corporations dictate that animals be raised by contractors
near the huge processing plants. This industrialized separation of
animals from crops results in a transfer of nutrients away from crop
farms, which then requires the purchase of fertilizer to replace soil
nutrients. Also, animal-raising facilities (factory farms) accumulate
nutrients in manure that cause significant local and regional pol lution. Meanwhile the crop farms need to purchase nutrients to
replenish those shipped to the factory-scale animal farms. This is
energy intensive—especially considering the fact that production of nitrogen fertilizers requires a lot of energy, and results in extra
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MULTIPLE CRISES AS SYMPTOMS 109
N20 (nitrous oxide) volatilization into the atmosphere. Although
N20 is usually released in small quantities, per unit weight it has
almost 300 times the effect on global warming than C02 (carbon
dioxide). Promoting the use of purchased inputs leads to many unneces
sary expenses for farmers as well as to ecological degradation. Soil
quality deteriorates while pollution of water with nutrients and
pesticides increases.
Another distortion has resulted from the patenting of life and
individual genes so they become the property of a corporation. The
control of seed production in the hands of relatively few influential
corporations that were looking for new products and markets so as
to increase profits has resulted in the genetically-modified-organ ism (GMO) seed industry. The top four firms now control over 40%
of the global seed market and it is estimated that in the United
States over 80% of the corn and the over 90% of the soybeans
planted use traits developed by Monsanto (Hubbard, 2009). The
use of GM corn and soybeans has helped to simplify the system for farmers, allowing them to work ever-larger farms. So far, GM
crops in the United States have generally yielded no better (and sometimes less) than non-GM crops, and the herbicide-resistant
varieties actually require more herbicide use because of the devel
opment of weed resistance to the single herbicide used (glyphosate, sold by Monsanto as Roundup). Farms are now suffering from the
high cost of GM seeds—between 2008 and 2009, prices were raised
some 25 to 30% and farmers using Monsanto's Roundup Ready
(RR) 2 soybean seed in 2010 paid approximately 40% more than in
2009. In addition, many farmers are finding increasing problems with the development of herbicide-resistant weeds. In cotton and
soybean farms in the South, a strain of pigweed has emerged that
is resistant to all modern herbicides.
The agriculture and food crisis arises partially as a result of
the production of food in larger farming units—outcompeting the
production of small farms—and partially as a result of the food be
ing sold into large internal markets or exported abroad. In poor countries, the opening of markets to competition and the cessation
of government support for agriculture under pressure of the inter
national organizations, such as the IMF and the World Bank, have
had devastating results, as imports and lack of government support have driven farmers out of business. The neoliberal ("Washington
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110 Fred Magdoff
Consensus") dogma holds that by dropping government supports and import taxes or restrictions, each nation will produce items
for which it has a "comparative advantage" and all will prosper as "free trade" governs economic relations among nations. Joan Robinson has explained the problem with this theory: "When
Ricardo set out the case against protection, he was supporting British economic interests. Free trade ruined Portuguese industry. Free trade for others is in the interest of the strongest competitor in
world markets, and a sufficiently strong competitor has no need for
protection at home" (Robinson, 1979). Trade agreements (under the WTO and bi- and multi-lateral agreements such as the NAFTA) have had deleterious effects on agricultural production in develop
ing countries and, therefore, on food sovereignty. For example, it is
estimated that under NAFTA, corn imports from the United States
put some 1.5 million Mexican farmers out of business (Global Ex
change web site). The world food crisis of 2008 began earlier. In
the fall of 2006, as the corn harvest was progressing in the United
States, the price of corn began to soar, increasing some 40% in a
matter of months, as so much of the crop was diverted to ethanol
production. The Mexican "tortilla" riots of early 2007 was a warn
ing sign of what was to come as almost all basic foods increased in
price, peaking in the summer of 2008, before declining. Although there was a food crisis in Haiti following the 2010 earthquake, Clinton's comments on the issue at the time (see above) also help
explain why hunger there was severe and widespread in 2008. The
remarkable movie Life and Debt has as one of its main themes the
destruction of Jamaican agriculture under the onslaught of U.S.
food imports following implementation of IMF "structural adjust ment" mandates. Local agriculture generally suffers greatly when
imports of low cost, frequently subsidized foods are allowed free
entry.
THE FOOD CRISIS BEFORE 2007/2008
All of the trends discussed above were operating before the
rapid rise of food prices in 2007/2008 created hunger on a massive
scale. And hunger was common and widespread before this pe riod. When supplies are tight "The Market" "decides" the "highest and best use" for products. This means that the wealthy countries
and the wealthy within even poor countries are advantaged while
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MULTIPLE CRISES AS SYMPTOMS 111
poor people suffer. Consider these headlines from India, long be
fore the current global food shortages:
"Poor in India Starve as Surplus Wheat Rots" (New York
Times, December 12, 2002).
"Want Amid Plenty, An Indian Paradox: Bumper Harvests
and Rising Hunger" (Wall Street Journal, June 25, 2004)
There also have been many stories about the scourge of sui
cides among Indian farmers unable to pay back loans, made worse
by the 2009 drought in large portions of the country. And these
stories are from the country that's supposed to be one of the Green
Revolution's main success stories!
We need look no further than the United States to see the
problems that arise in a land with plenty of food, but in which
food is considered a commodity. According to the USDA (Nord et
al., 2005), in 2004 "... 38.2 million people lived in food insecure households, including 13.9 million children. Of these individu
als, 7.4 million adults and 3.3 million children lived in households
where someone experienced hunger during the year." And these
were the good times! The situation has gotten much worse with
the Great Recession we are now in—record numbers of people are
using food stamps and pressure on soup kitchens and foodshelves
has greatly increased. The USDA estimated that in 2009 over 50
million people lived in food-insecure households (USDA Economic
Research Service, 2011).
B. The Environmental Crisis
There is plenty of evidence that humans have caused environ
mental damage, literally for millennia. Problems with deforesta
tion, soil erosion, and salinization of irrigated soils go back thou
sands of years. However, now there are more people and we have
the technology to do greater damage and to do it more quickly. In addition, we have a system for making economic decisions that, as Rachel Carson put it, prays to no other gods than profit and
production. In fact, capitalism, by its very workings, demands that
there be no other gods. This has led to the rapid degradation of the earth's environ
ment. Global warming, induced by greenhouse gases (COa, meth
ane, NgO, etc.) is in the process of destabilizing the world's climate,
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112 Fred Magdoff
with devastating results expected. The melting of the Greenland
and Antarctica ice sheets is projected to cause flooding of areas
where tens of millions of people now live. The Himalayan glaciers—
upon which a good portion of continental southeast Asia depends for water during the dry season—and the Andean glaciers—which are so important locally for drinking water and irrigation—are rap
idly disappearing. Pollution of air, water, and soil is so great that many of the sup
port systems on which we depend are threatened. Soil degradation
through organic matter depletion and erosion jeopardizes future
agricultural productivity. Factory farms for producing chicken,
hogs, and cattle serve large corporations' interests to allow better
control and to exercise the use of industrial methods to bring down
costs of production. But at the same time this inhumane system creates a huge rupture in nutrient cycling, causing pollution of sur
face and groundwater. It has also induced large-scale agricultural
producers to feed low levels of antibiotics to livestock to try to keep animals healthy, leading to the development of antibiotic-resistant
strains of bacteria.
Humans have become contaminated with a soup of industrial
chemicals. With new production and consumption, more and more
pollutants are generated. More of these are toxic, taking the form
of persistent organic pollutants (POPs) that are disseminated un
controllably through the global environment and in living tissues.
Some 93% of people in the United States have BPA (bisphenol A, used to make rigid polycarbonate plastics used in water cooler bot
tles, baby bottles, linings of most metal food containers—and pres ent in the foods inside these containers, kitchen appliances, etc.)
byproduct in their urine. Almost all people in the United States
have detectable levels of PBDEs (Polybrominated diphenyl ethers,
used as flame retardants in computers, furniture, mattresses, and
medical equipment) in their bodies. PBDEs have been shown to
have negative neurological and fertility effects in animals and may lower fertility in humans as well (Economist, 2010). There is also
significant concern that chemical contamination of fetuses during
pregnancy is contributing to the rise of autism among children
(Landrigan, 2010). According to an editorial in Scientific American,
"... of the more than 80,000 chemicals in use in the U.S., only five
have been either restricted or banned. Not 5 percent, five. The EPA
has been able to force health and safety testing for only around
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MULTIPLE CRISES AS SYMPTOMS 113
200" (Scientific American, 2010). At the end of March 2010, the
U.S. Environmental Protection Agency finally listed BPA as a
"chemical of concern," meaning that they will commence studying it (Fahrenthold, 2010).
C. The Energy Crisis
Oil has been the bedrock fuel and/or feedstock for much of
modern industry and transportation—providing the liquid fuels
needed for automobiles, trucks, and airplanes. Ensuring access
to this resource has been the centerpiece of U.S. imperial policy. This began in earnest with the 1953 overthrow of democratically elected Prime Minister Mossadegh in Iran after his government nationalized the oil industry, and the installation of the ruthless re
gime of the Shah. In the process, control over a significant portion of Iranian oil passed from the British owned Anglo-Iranian Oil
Company (later to become British Petroleum) and into the hands
of U.S. corporations. The long-term support of the undemocratic
Saud dynasty in Saudi Arabia is also a part of this policy, as were
the wars conducted by the U.S. against Iraq. While large quantities of coal fuel are available for some time to
come, using this source so extensively has tremendous environmen
tal costs: pollution of the atmosphere and significant harm where
the coal is mined (for example, the lives lost to mine accidents and
the use of "mountain top removal" to reach coal seams for easier
mining). The greatest attention has been focused on the use of
liquid fuels made from oil—gasoline and diesel—because almost all
transportation is based on these fuels. The prospect of peak oil has
already engendered growing geopolitical conflict and has resulted
in efforts to lessen dependence on fossil fuels for transportation.
(See discussion of "biofuels" below.) The prices of oil and gas are
significantly higher than just a few years ago and they are projected to stay at elevated levels for the foreseeable future.
As the easy and cheap techniques to exploit oil and gas depos its have been developed and employed, companies are now going after deposits that are more difficult to recover, resulting in great er environmental damage as a byproduct. The potential ecologi cal harm of deep ocean drilling became apparent with the spring 2010 BP disaster, taking 11 lives and causing extensive damage to
sensitive marshes and wildlife. Canada is the top exporter of oil
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114 Fred Magdoff
to the U.S., with over half of the production in 2010 projected to
come from the oil sand deposits. The exploitation of the Alberta
(Canada) oil sand fields is causing ecological havoc over wide ar
eas. In addition, because of the work that must be done to extract
and separate the oil from the sands, 10% more CO, is emitted than
from conventional oil (Swann & Cyran, 2010). The extraction of oil
from Canada's oil sands is responsible for close to one-third of the
country's total greenhouse gas emissions. In the area of natural
gas production, the new extraction method of hydraulic fractur
ing, or fracking, recovers gas trapped in deep shale deposits by
blasting down a liquid mixture of chemicals, including biocides.
One of the larger areas of potential fracking for gas recovery is
the Marcellus Shale deposit that occurs in West Virginia, eastern
Ohio, Pennsylvania, and New York. Damage has already occurred
to neighbors' drinking water in Pennsylvania and there is great concern that using this technique could have harmful effects on
groundwater in the upstate watershed that supplies New York City with drinking water.
The emphasis that some place on increasing energy efficiency misses an important point—gains in energy efficiency have been
occurring since the development of the steam engine and will con
tinue. William Stanley Jevons, a century and a half ago, stated that
greater efficiency of coal powered machinery will actually lead to
more coal use, a phenomenon referred to as the Jevons paradox
(or effect): as efficiencies increase so does the exploitation of the
resource. And so far, the gains of increased efficiency of all fuel
sources have been used to expand the scale of production and ener
gy use. So, greater efficiency of energy conversion does not appear to be an answer to the problem. While there is much new to learn
about more efficient energy use, engineer Saul Griffith has noted, "There are a lot of ideas out there, but nothing nearly as radical as
the green-tech hype. We've been working on energy, as a society, for a few thousand years, and especially for the last two hundred,
so we've already turned over most of the stones" (Owen, 2010).
III. INTERRELATIONSHIPS
The crises of food and agriculture, the environment, and ener
gy are interrelated to a great extent. A few examples, by no means
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MULTIPLE CRISES AS SYMPTOMS 115
an exhaustive list, of these connections are described briefly be
low.
Energy-Environment: Use of large amounts of fossil fuels is believed
to be primarily responsible for the increase in greenhouse gases in
the earth's atmosphere, causing global climate change. In addition,
mercury emitted from coal burning power plants contaminates
soil, water, and living organisms. As mentioned above regarding coal, the experiences with extraction of fuel from the oil sands or
from the ocean floor have clearly demonstrated that the extraction
process itself can cause extensive environmental harm.
Food-Energy-Environment: "Modern" industrial agricultural produc tion, processing, and distribution are dependent on high levels of
energy inputs. The agrifood system uses close to 20% of all energy used in the United States, with agricultural production accounting for 7%—or one-third of the total used in the agrifood system (Pi
mentel, 2010). Fossil fuel energy used in agriculture and the food
system is much greater than needed, even assuming the current
system. About a third of the energy that goes into growing a crop of corn in the Midwest U.S. farms is in the form of nitrogen fertiliz
er—a nutrient that could be provided by including forage legumes such as alfalfa or legume cover crops in the rotation. Production
of agricultural pesticides is also very energy intensive. The over
application of N fertilizer in quest for the highest possible yields results in significant nitrate pollution of surface and groundwater as well as N20 pollution of the atmosphere. Nitrous oxide is both
the most potent greenhouse gas (per unit weight) and also plays a role in depleting the atmospheric ozone layer that helps protect earth's living creatures from excess exposure to UV rays. Nitrogen from cornfields leaching into the Mississippi and its tributaries is
believed to be responsible for the so-called "dead zone" near where
the river enters the Gulf of Mexico.
Large amounts of energy are needed to supply a system where
animals are divorced from the land that supplies their feed, rather
than in ecologically managed systems. In this industrial agricul tural system, large amounts of fertilizers must be produced and
shipped to crop farms, then crops must be shipped long distance
to the animal farms, then the factory-sized animal farms need to
get rid of the excess manure that accumulates. This is a much more
energy costly and polluting system than one in which animals are
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116 Fred Magdoff
raised on integrated cow-crop farms, nitrogen is supplied by grow
ing forage legumes to feed the animals, and most nutrients, which
just pass through the cow, can be returned back to the same fields
from which they came.
One of the proposed answers to the energy crisis is to rely more
on biofuels, especially those produced from agricultural crops. As
mentioned above, the diversion of food and feed crops, especially corn, soybeans, and oil palm to produce biofuels tightens supplies available for human consumption and leads to increased prices. In addition, there are serious environmental consequences to the
"first generation" of biofuels—these include water use and pollu tion during the crop's growing period, water use and pollution in producing the biofuels, air pollution during production of the
biofuels, and accelerated COs evolution as a result of changes of
land use to grow the crop (especially severe where tropical forests
are replaced with oil palm plantations) (Magdoff, 2008). There are
proposals for "second generation" biofuels, not yet commercial
ized, that would use grasses or "waste" crop residues, such as corn
stalks, as the feedstock for conversion of cellulose to ethanol. If
large quantities of crop residues are used, this means lessening the
return of these materials to the soil, decreasing soil organic matter
levels, thus decreasing soil quality. In India, where projects have
been implemented for burning crop residues directly for genera tion of electricity, people are cutting down trees to provide fuel for
fires that was previously provided by crop residues (Rogers, 2010).
People go hungry in a world of abundant food as larger farms
integrated into world markets produce much of the food, as more
and more people are forced off the land and support for farmers in
the poor countries has decreased, and as food crops are diverted
to make fuel or to feed animals.
IV. CAPITALISM AND THE TRIPLE CRISES
Capitalism is an economic system that reaches most corners
of the world and has enormous impacts on political and social as
pects of society. In the process of going to school, reading/looking at media, being perpetually assaulted with what amounts to vari
ous forms of propaganda for the system and products of the system
(commodities and services), people assimilate the ethic, outlook,
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MULTIPLE CRISES AS SYMPTOMS 117
and frame of mind of capitalism. They come to believe that greed,
exploitation of labor, and competition (among people, businesses,
countries) are not only acceptable but are actually good for society
by helping the economy to function "efficiently." But let's discuss
some of the key aspects of capitalism—what makes it tick and what
are the logical consequences of such a system.
1. Capitalism has a single driving force, or engine, that motivates
its participants and keeps the system going year after year—the desire to make profits and accumulate more and more money
(capital). This single driving force is the strength of capital ism—a system that has accumulated huge hoards of capital and
produced more innovations in science and technology than any other. Morally, the system is based on the proposition that each
following one's own interests (greed) will promote the general interest and growth. Adam Smith put it: "It is not from the
benevolence of the butcher, the brewer, or the baker that we
expect our dinner, but from their regard to their own interest"
(1981 [1776]). In other words, individual greed (or quest for
profits) drives the system and, theoretically, human needs are
satisfied as a mere byproduct. This, of course, is not true—each
following one's own interests does not lead to satisfaction of ba
sic human needs for all in society, but only for those who earn
sufficient income to purchase these necessities of life.
Having a single driving force, with no natural boundary in
dicating "enough," leads to the many negative aspects of the
system. These are usually referred to as "externalities," but they arise out of capitalism's inner drives and are not external to the
system, only to the market price of products.
2. Capitalism is a system that by its very nature must expand and continue growing or it is in a state of crisis. When in
ternal markets for a certain product are satisfied, expansion abroad occurs, as well as the creation of internal markets for
new "stuff." Capitalism without growth makes no sense what
soever. How do you continually make new profits with the mon
ey you have if you don't make more stuff and provide more
services and convince people to consume them, as Joseph
Schumpeter put it, through the "elaborate psychotechnics of
advertising" (1934: 73)? The sales effort has become an enor
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118 Fred Magdoff
mous and unproductive part of the economy (McChesney et al.,
2009). It serves no other purpose than to convince people to
buy more goods and services—most of which they have little use
for and which do not make them any happier. The importance and scope of the sales drive was described
over a half century ago by marketing consultant Victor Lebow
(1955): "Our enormously productive economy demands that we
make consumption our way of life, that we convert the buying and use of goods into rituals, that we seek our spiritual satisfac
tions, our ego satisfactions, in consumption." The drive, on a finite globe, continually to produce more
and more and convince people to purchase these products and
services through a massive advertising effort makes the very DNA of the system anti-environmental. While it's possible to
more efficiently produce, recycle, or reuse things, continually
increasing production, use, and disposal of commodities pro duces more pollution.
The U.S. population is growing by less than about 1% a
year, as is the number of people in the age group that normally enters the labor force. However, when GDP growth is less than
3% a year, there are usually not enough jobs created to create
anything approaching "full employment" (Magdoff & Foster,
2010). This drive to growth for the sake of growth and more prof
its—which are needed to avert economic crisis—creates a system that is incompatible with maintaining environmental quality. A
system fostering perpetual growth leads to the following:
a. Depletion of non-renewable natural resources without re
gard for needs of future generations; b. Rapacious exploitation of renewable resources, at home
and abroad, sometimes to the point of near extinction;
c. Environmental harm caused by manufacturing, distribu
tion, consumption, and disposal of more and more stuff;
d. Production abroad as well as sales into foreign markets of
domestically made goods, after expansion eventually satu
rates the home market. It also means trying to corner natu
ral resources and markets that are needed now or might be
needed at some time in the future. These phenomena can
be witnessed as China completes its transformation to capi talism. One change leads to another, seemingly inexorably.
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MULTIPLE CRISES AS SYMPTOMS 119
Chinese companies have purchased access to raw materi
als, especially in Africa and Southeast Asia. And as China
requires oil from abroad to fuel its rapid expansion, it also
builds up its navy and equips its air force with new jets. The
current U.S. wars in Iraq and Afghanistan are incompre hensible without the recognition that one country sits in the
region of the largest pool of oil in the world and the other
along possible oil and gas pipeline routes through central
Asia. Capitalism is a system that must expand—leading to
colonial and imperial wars and economic domination of
poorer countries. Imperialism is an integral part of capi talism (H. Magdoff, 1969), and the military adventures, in
addition to lives lost, waste an estimated trillion dollars that
the United States spends annually on the military/intelli
gence system, helping to maintain literally hundreds of U.S.
bases on foreign soil around the world (Foster et al., 2008;
Wills, 2009); and these imperial wars incur significant envi
ronmental harm.
3. Gradually almost the entire world has been incorporated into a world capitalist system—with different countries play
ing different roles. Some supply mainly raw materials for the
advanced countries (U.S., Europe, Japan, and now China and
India), some supply parts for consumer goods to be assembled
in another country, some provide consumer goods production and/or assembly, some supply machine tools, and of course, some produce a mixture. As Marx and Engels famously put it in
1848 in the Communist Manifesto:
Modern industry has established the world market, for
which the discovery of America paved the way. This mar
ket has given an immense development to commerce, to navigation, to communication by land. This develop ment has, in turn, reacted on the extension of industry; and in proportion as industry, commerce, navigation,
railways extended, in the same proportion the bourgeoi sie developed, increased its capital, and pushed into the
background every class handed down from the Middle
Ages (ch. 1).
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120 Fred Magdoff
The roles may change over time, but the relative positions of many countries have remained static for long periods of time. It could be
argued that there are three tiers of economic advancement:
a. The wealthy countries of Europe, the United States, and
Japan, which have been rivals, but since the Second World
War have formed a bloc. In this group, the United States,
being the strongest economy, has taken up the imperial mantle from Britain, and has provided the leadership and, to a certain extent, domination of the world capitalist sys tem.
b. A group of second-tier countries, Brazil, Russia, India, and
China (BRIC), all of which are large in land area and in
population and have significant degrees of endogenous de
velopment, but also retain significant aspects of underde
velopment. Of these four, China clearly is the main country
already posing a significant challenge to the first group—by
cornering natural resources from around the world, build
ing up its navy, using government resources to build up and support the private sector, and so on. On the other
hand, China's economy has significant weaknesses: an as
set bubble has developed and its economy performs more
as a platform on which to assemble parts made elsewhere
(Hart-Landsberg, 2010). But while China is still dependent on many technologies from abroad, some independent tech
nology development is occurring. c. A third group (with many sub-groups within it) of countries
exists—many of these, especially those at the bottom—that
seem doomed to perpetual underdevelopment.
4. Capitalism is marked by recessions and depressions within
the normal business cycle. In the ordinary business cycle, fac
tories and whole industries produce more and more during a boom—assuming the boom will never end and not wanting to miss out on the "good times"—which results in overcapacity and overproduction, and leads to a recession. Excessive debt,
speculation, and asset bubbles may also play a significant role
in starting a recession or depression. In other words, it's prone to crises, during which the poor and near poor suffer the most.
While the environment actually may not be harmed as much
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MULTIPLE CRISES AS SYMPTOMS 121
during recessions (as less stuff is produced and people drive
less), many more people go hungry during these times.
5. Capitalism produces and reproduces a stratification of wealth.
Most people need to work in order to earn wages to purchase the necessities of life. But a large number of people, precarious
ly connected to jobs due to the way the system functions, exist
on the bottom rungs of the ladder. They are hired during times
of growth and fired as growth slows or when for other reasons
their labor is no longer needed—Marx referred to this group as
the Reserve Army of Labor. (For a contemporary view of this
reserve army, see Magdoff & Magdoff, 2004.) Given a system with booms and busts and one in which profits are the highest
priority, it is not just a convenience to have a group of people in the "reserve army," it is essential to the smooth workings of
the system. The system, without significant intervention by the
government (through large inheritance taxes and substantial
progressive income taxes), produces a huge inequality of both
income and wealth. The production of great wealth and at the
same time great poverty within and between countries is not
coincidental—they exist as two sides of the same coin. In 2006, the top 1% of the people in the United States controlled 25% of
the wealth! The top 10% controlled approximately 50% of the
wealth. The richest 400 people had wealth worth $1.6 trillion
equivalent to the combined wealth of the bottom 150 million
people in the United States. In addition, the world distribution
of wealth is such that an estimated one-tenth of one percent of
the people controls some $35 trillion, equivalent to approxi
mately half of the world's annual GDP (Miller & Greenberg, 2009; Kennickel, 2009; economywatch.com, 2010; forbes.com,
2011; Capgemini & Merrill Lynch Wealth Management, 2009). Most of the productive forces of society—factories, machin
ery, raw materials, land—are controlled by a relatively small
percentage of the population. And as wealth becomes more
concentrated, the wealthy have more political power and they will do what they can to hold on to all the money they can—at
the expense of those in lower economic strata.
The economic relationships produce and reproduce stratifi
cation on a world level as well. Trade policies are designed by
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122 Fred Magd off
those with power to benefit from them. This is not the time
or place to go into the history of GATT and the WTO. Suffice
it to say that these are agreements that significantly assist the
owners of capital in the advanced capitalist countries to have
their way—to have their patents and copyrights respected inter
nationally, to invest where they want and repatriate profits at
will, and to move capital in and out at will to take advantages of
differences in exchange rates, stock exchanges, environmental
and labor regulations. This does not mean that the internation
al trade rules and regulations may be of no help whatsoever to
any capitalist in the Third World, nor that they may not harm
some capitalists in advanced countries. But it has been the rule
of the powerful. There can be no "level playing field" when
there are differences in power. And the powerful do not always
play by the rules.
6. Goods and services are rationed according to ability to pay. The poor do not have access to good homes or adequate food
supplies because they do not have "effective" demand—although
they certainly have biologically-based demands. All goods and
services are commodities. People without sufficient effective
demand (money) have no right to any particular type of com
modity—whether it is a luxury such as a diamond bracelet or a
huge McMansion, or whether it is one of the necessities of life, such as a healthy physical environment, reliable food supplies, or access to quality medical care. Access to all commodities
is determined not by desire or need, but by having sufficient
money or credit to purchase them.
The wealthy and the well-off consume way beyond any logi cal conception of basic human needs, using up natural resourc
es and contributing to environmental degradation. At the same
time those in the lowest strata of society live in substandard
housing, are frequently exposed to industrial and waste site
pollution, and have insufficient access to food.
7. The drive to profits includes continual evaluation and imple mentation of ways to reduce costs and increase sales (and
commodity prices if monopoly/oligopoly conditions prevail).
Automation/mechanization is one of the ways to produce more
with fewer workers. The purpose of the drive to increased labor
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MULTIPLE CRISES AS SYMPTOMS 123
productivity is not to give people more leisure time to read or
enjoy other forms of recreation. It is, rather, to increase profits. Cars can be produced now with a fraction of the labor needed
50 years ago. Some services can also be automated, as almost
anyone can attest who has tried to actually get some answers
from a human instead of a computerized answering service.
In most businesses, it is next to impossible, of course, to reach
a real person without great effort. Fewer and fewer people are
needed to produce basic necessities—goods and services. Al
though more and more stuff is produced, it is produced with
fewer laborers. Thus, by the very workings of the system—and this is one of its strengths—less labor is needed to provide
people's basic needs. However, this leaves many people either
under- or unemployed, or employed in non-productive labor, such as marketing representatives for pharmaceutical or fertil
izer companies, as well as a good percentage of the financial
sector, and for health insurance companies.
8. Capitalism is not just an economic system—by its workings and the power relations created by it, it fashions a political,
judicial, and social system to support the economic system.
People are at the service of the economy. Additionally, the
attitudes and mores needed for the smooth functioning of the
system—greed, individualism, competitiveness, exploitation of
others, and "consumerism" (the drive to purchase more and
more stuff unrelated to needs and even happiness) are incul
cated into people by schools, the media, and the workplace. There is an insidious connection between business inter
ests, politics, and law.3 These include outright bribery, in ad
dition to the more subtle sorts of buying access, friendship, and influence through campaign contributions and lobbying efforts. In addition, a culture develops among political leaders, which considers that what is good for capitalist business is good for the country. And within the legal system, the interests of
capitalists and their businesses are given almost every benefit
including having corporations treated as individuals with first
amendment rights to free speech, so that they can spend unlim
5 See Simon Johnson's "The Quiet Coup" for a discussion of the power of financial
interest in the U.S. political system.
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124 Fred Magdoff
ited amounts of money on "issue" ads so long as they don't say "vote" or "don't vote" for so-and-so.
V. RESOLVING THE FOOD/AGRICULTURE, ENERGY, AND ENVIRONMENTAL CRISES
... it is our work with living soil that provides sustainable alter
natives to the triple crises of climate, energy, and food. No mat
ter how many songs on your iPod, cars in your garage, or books
on your shelf, it is plants' ability to capture solar energy that is
at the root of it all. Without fertile soil, what is life?
—Vandana Shiva (2008)
If each individual issue is looked at separately, there appear to
be technical solutions, and both large- and small-scale technolo
gies have been proposed for dealing with various aspects of the
triple crisis—from atmospheric engineering to help decrease global
warming, to more efficient hybrid automobiles, to planting trees
that absorb C02, to storing black carbon (biochar) in soils, to us
ing legumes that produce the nitrogen needed for grain crops in
stead of nitrogen fertilizer, to better intercity rail transit for pas
sengers and freight. However, there are potential issues with many of these technologies. For example, planetary bioengineering may have significant negative side effects. The effect on greenhouse gas emissions of hybrid or all-electric cars depends on the feedstock
used to generate electricity—if coal is the energy source for electric
generation, emissions will actually be higher than with an efficient
gasoline engine (Moyer, 2010). Although greater energy efficiency in transportation and industry is a laudable goal for many reasons,
as we have discussed above, this usually leads to greater resource
use. The problem with remedies proposed during the current dis
cussion of the triple crises is that the technologies are viewed as
"silver bullets" to solve individual issues, rather than as part of a
consideration of, and an attempt to deal with, the whole system
including environmental, political, economic, and social aspects. Scientific research and practical experiments of farmers in the
countries of the North as well as the South have indicated that
more sustainable agricultural systems are possible—ones that use
far less energy and irrigation water, use minimal amounts of pesti
cides, pollute water and air less, integrate animal and crop produc
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MULTIPLE CRISES AS SYMPTOMS 125
tion on individual farms, and build soil health by increasing soil
organic matter (thereby also sequestering carbon). The principles and practices of a more ecologically-based agriculture are well es
tablished (Magdoff, 2007). But while techniques are readily avail
able for food production that is more ecologically sound than that
of the large-scale and very energy-intensive production systems of
conventional agriculture, it is hard for small-scale "sustainable" or
"organic" farms to compete. Even in the organic sector, the large farms with their financial and physical economies of scale predom inate in supermarkets. Small-scale ecologically sound farms have
made inroads by selling direct to the public or other end users
(such as schools and restaurants). However, in the future of high
energy costs and decreased fossil fuel availability, it will be critical
to have the predominant food system composed of farms that pro duce near the end user, use biologically fixed nitrogen (instead of
fertilizer), have better soil health, and control pests by enhanced
management of the agroecosystem (rather than with pesticides).
Although such systems use more labor than highly mechanized
large-scale production, there are literally tens of millions of people
unemployed around the world who have few prospects of obtain
ing jobs. Ecological agricultural practices carried out by small- to
medium-scale farmers—working cooperatively or individually—will
help the global South deal with the crises of food, the environ
ment, and energy; enormous efforts will be needed to implement such systems.
There are some who see some of the problems that capitalism
brings, but think that it can and should be reformed. According to
Benjamin Barber (2009): "The struggle for the soul of capitalism is
... a struggle between the nation's economic body and its civic soul:
a struggle to put capitalism in its proper place, where it serves our
nature and needs rather than manipulating and fabricating whims
and wants. Saving capitalism means bringing it into harmony with
spirit—with prudence, pluralism and those 'things of the public'... that define our civic souls. A revolution of the spirit." There is one
very large problem with this plea—capitalism has no soul, can nev
er have a soul, and in its very nature it must manipulate and fabri
cate whims and wants. Some have proposed "green capitalism"—in which products are produced using environmentally friendly tech
nologies and in which people and businesses can offset the C02 emissions their activities cause—as an answer to the environmental
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126 Fred Magdoff
crisis. However, if the promotion of ever-greater consumption and
growth without end is not changed, "green capitalism" will at best
slow down the rate of environmental destruction. There are also
numerous problems with carbon offsets, including the lack of close
regulation and the lack of a guarantee that any offset project will
be maintained forever (Rogers, 2010). In the absence of systemic change, there certainly are things
that have been done, and more can be done in the future, to lessen
the negative effects of capitalism. For example, there is no practi cal reason why the United States can't have a better social welfare
system, including universal health care, as is the case in many other
advanced capitalist countries—although some of these are being re
versed as Europe goes through its economic crisis. The same goes for insuring sufficient quantities of quality food and good housing for everyone—the problem is that there are very powerful forces
that strongly oppose these projects. Governments can pass laws
and implement regulations to curb the worst of the environmental
problems. They can have regulatory agencies that actually regulate in the best interests of the people and the environment, instead of
protecting the interests of the very groups they supposedly regu late. And more environmentally sound agricultural practices can
be encouraged and harmful ones discouraged. In the meantime people and organizations working locally and
regionally, in the United States and abroad, show that the normal
ways of doing business can be bypassed and new ways can be found
for relating people to people and goods to people. CSA (Commu
nity Supported Agriculture) farms constitute a prime example, where the people who join share the risk, where income-based slid
ing scale fees for shares are common, and where some connections
have been made with local schools or hospital kitchens. Most mid
dlemen are bypassed and farmers regain a direct and strong con
nection to the people who consume their food. Another example is co-housing, projects that purposely attempt to mix generations and socio-economic status. It is wonderful to have such examples, because they demonstrate that other ways of organizing society and economy—at least at the local level—are possible. The small
village of Gaviotas in Colombia is another example of organizing
society along principles different than straight capitalist lines.
Another system is possible and needed. Despite examples that
can be given of more progressive ways to relate to one another in a
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MULTIPLE CRISES AS SYMPTOMS 127
capitalist society or to grow food or to use energy more efficiently, the real solution to the triple crises—food, environment, and en
ergy-is to create a different economic system, one at the service
of humanity and the environment on which we all depend. This
means making economic decisions that occur at local, regional, and multiregional levels by democratic procedures (instead of by
private capital)—decisions such as: how to supply everyone with
the basic human needs of food, shelter, clothing, health care, edu
cational, and cultural opportunities; how much of the economic
surplus should be consumed and how much invested; and where
the investments should be directed. Ecologically based agriculture, carried out mainly by small to medium-size farms, can become the
norm in such a society. The distribution of land as well as food, health care, housing, etc. should be based on human need and not
market forces. This doesn't mean that markets will cease to exist, but that they no longer become one of the primary cues to make
investment decisions. This is, of course, easier said than done.
The Community Councils of Venezuela—where people decide
the priorities for social investment in their communities and re
ceive the resources to implement them—is an example of planning for human needs at the local level—for such important needs as
schools, clinics, roads, electricity, running water. In a truly trans
formed society, community councils need to interact with regional and multiregional efforts. And the use of the surplus of society must be based on their decisions.
A new kind of society—in which both the economy and political life are under true democratic social control—is needed to solve
these crises of capitalism. One in which decisions regarding the
investment of the society's surplus are not made by a few individu
als on the basis of what will return the most profit, but rather by the people according to their needs, including the need for a clean
and thriving environment.
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