Friday, June 29, 2018

Natural Law Requires Respect of PUBLIC Property Rights, too.

Human beings have a collective moral right to assert public property claims. We have a collective moral duty to do so, too. Public property rights (and property rights generally) are human rights. Human rights are an example of natural law. As a kind of natural law, human rights must be respected. Public property rights include the collective right of the people to benefit from commons resources. Public property rights include a shared right to decide overall limits to humans' impact on the environment. These collective rights imply corresponding shared moral duties to create systems of governance that assure that natural wealth is shared equitably and that limits on pollution and on rates of taking of natural resources and extent of encroachment onto wildlife habitat are consistent with the will of the people at large. No society can hold together in the long run in the absence of a respect for basic rights. Economic justice, the stability of our society and the future health of the planet all depend on us recognizing these rights and carrying out these shared responsibilities.

Natural phenomena emerge in the cosmos according to natural law. Moral precepts can be seen as natural laws of social interaction, while the emergence of civilization can be seen as a particular kind of natural phenomenon. But civilization as we've made it thus far exhibits some serious flaws related to our near-total neglect of a basic moral precept. There is broad agreement on the idea that human beings have a collective right to define limits to pollution and limits to the rate of taking of natural resources, yet we have thus far failed to carry out our collective duty to establish those limits in reality--limits that are in accord with average opinion of the people. This neglect of principle impairs economic justice. Neglect of principle impedes efforts to build a sustainable society.

We have a civilization that is plagued by widespread extreme poverty and we are threatening to produce a planetary ecological disaster. We are challenged by circumstances to create a sustainable and more just civilization.

Civilizations thrive then collapse because conditions emerge that make agriculture, markets and cities possible, then population and impacts grow beyond what the natural environment can sustain. Economies boom then bust because they grow beyond what their resource bases can support. The arc of civilization and the boom and bust of the business 'cycle' are similar phenomena seen at different scales. These sometimes wild swings may appear to be cyclical variations, but they actually reflect chaotic instabilities. A closer adherence to basic principles would mean a dampening of these gyrations to the point that they would no longer pose an existential threat to the system.

Fees charged proportional to the taking or degradation of natural resources could be applied as a mechanism to moderate human economic activity, with the aim of keeping overall environmental impacts within limits that most people find acceptable. (We might assume that people will identify as acceptable that which they believe is sustainable--a society that is democratic in terms of limits to environmental impacts is more likely to be sustainable.) We could use a system of random surveys to discern whether more people want to see more strict limits on pollution levels and on the rates of taking of resources, or more want to be more lenient, or whether there is a balance between the number of people in one camp vs. the other.

An environmental impact fee is a lever or mechanism that society could use for applying incentives to influence the behavior of those who take or degrade natural resources in pursuit of profit. Fees for particular kinds of impacts would rise or fall, as need be, when the actual conditions do not match what most people want to see. Fees would be held steady when the reality matches what the largest number of people say is the best balance between the alternative positions: Freedom vs. constraint; More vs. less impact on the environment.

[There is an implicit trade-off that translates restraint now into more opportunities or resilience later, as stricter limits on environmental impacts now leads to a more healthy environment and more abundant mineral reserves in the future. (This tradeoff mirrors the challenge that confronted traditionally nomadic, hunter-gatherer peoples who had begun to settle in choice spots tens of thousands of years ago: Either eat your seed grain, or sacrifice now so that you might prosper in the future.)]

Defining appropriate limits to humans' environmental impacts is a primary function of government in an advanced industrial society. A system such as that described above would ensure that the basic human right to collectively decide limits would be respected in practice. The hope and expectation is that people will, in fact, choose to keep overall impacts within limits that the larger environment can sustain. Apparently, eternal vigilance is the price citizens must pay to ensure that a human population that has the ability to go beyond what the Earth can support in fact does not go beyond those limits.

Citizens (even those who are not 'environmentally conscious') would have a natural inclination to call for less impact on the environment (higher fees) because the sum of all proceeds from these fees would be a monetary representation of wealth owned by all. Equal sharing of fee proceeds would be a way for society to equitably share (this monetary representation of) that which we all own in common. A vote for less environmental impact translates to a larger natural wealth stipend.

Equal distribution of this money would buffer the downward slide of a shrinking economy, because the entire human population would continue to receive a modest income from shared natural resource wealth, independent of income from work, family inheritance, or investments. A 'floor' on the loss of human confidence that causes or contributes to business contractions would be created. Spending in support of basic human needs would continue. Resources would continue to flow to the sectors of the economy that provide essential goods and services. With a modest income assured, people would continue to spend in ways that support the most vital economic activities. Sectors devoted to meeting basic needs would be insulated from the worst vicissitudes of the business 'cycle'. Swings in the economic climate would be moderated. With demands on renewable biological resources (e. g., forests and fish stocks) kept sufficiently low and with availability of minerals extended farther into the future through the fee mechanism, civilization becomes a more sustainable phenomenon. With extreme poverty ended and disparity of wealth reduced through equal sharing of fee proceeds, society rests on a stronger foundation of justice, which would contribute to social stability, complementing the improved economic stability.

We can imagine an equal payment to all people that would protect every person against extreme material deprivation. Those who are at the greatest disadvantage under the current system will be better-off with this policy. Respect for public property rights would significantly improve the material condition of those who experience the greatest economic hardship within the current paradigm. We will no longer have vast regions of the world populated by mostly dispossessed people.

Everyone benefits when the economy adapts to the pricing of natural resource wealth. This adaptation is implicit in the transition away from an economy that allows economic externalities to go uncompensated. Externalities are the hidden costs (or benefits) of economic activity. For example, the cost of pollution (born by the human community and the larger community of life) is hidden from investors, corporations and consumers when producers do not pay a fee proportional to the amount of pollution that they cause.

If there is no monetary payment made when pollution is created, then pollution costs are not reflected on the financial balance sheet. Economic actors are unable to see costs that are off the balance sheet and therefore hidden from view. They cannot properly take account of these costs. Because environmental impact costs are hidden, all choices about what manufacturing process to adopt, what products to buy, what mode of transport to use, what to eat, etc., are skewed toward more environmentally-harmful acts and away from sustainability.

Putting a price on natural resource wealth moves us toward an economy that embodies the concept of public property rights in its structure and accounting. Industrial processes and business models will be redesigned to improve resource efficiency. Individuals will change habits toward more sustainable practices. People will choose more environmentally-friendly lifestyles--even if they are not trying to do so because they are temperamentally inclined to be concerned about environmental issues. This means improved conditions for everyone: More ecological health and more personal health. (Environmental impact pricing would favor whole foods, locally-produced foods and plant-based diets.) A sustainable human society built on a broader moral foundation is good for all Earthlings.

Taking ownership of our environment is even good for us in ways that may not be immediately obvious. For example, if we were to decide that advertising billboards are an adverse environmental impact due to their contribution to unwanted visual blight, then fees could be charged to those who post such ads, to assure that the prevalence of billboards on the landscape is kept within acceptable limits. Maybe signage in earth-tones would be considered less offensive. (What would a random survey reveal?) There could be a graduated fee structure.

Now imagine that every kind of television or radio broadcast is a sort of billboard in the public space (the public airwaves). If we want to manage the use of the airwaves in a way that is consistent with the will of the people, we could charge a fee for certain uses of the broadcast spectrum that promote private or commercial interests rather than the public interest. We could pay a stipend to broadcasters and/or producers who offer programming that a random survey indicates would make a valuable contribution to the public interest or public good, in the view of most people. Shaping or tilting our use of the broadcast spectrum toward the public interest might change the character of broadcast television and radio in profound ways. We could get an idea about how these changes would affect our culture if we start asking the pertinent questions. Given a multitude of choices for how to use the broadcast spectrum, how might we best promote the public interest? Making channel space available for distribution of programs according to what random surveys show would promote the public interest will produce a menu of programs that would serve the public interest more effectively than what we have now. The current system favors quantity (size of audience) over quality (depth of engagement with topics that matter).

We can make the world more what we want it to be. By changing our relationship with our political and economic systems--by changing the way we participate in them--toward a fuller respect of our basic principles, we transform our society and ourselves. With a change in the rules toward greater respect of basic moral principles, we can build a global civilization that is both sustainable and more just.



Are Corporations Evil?

John Champagne on X

Monday, June 18, 2018

Equal sharing of natural wealth promotes justice and sustainability

Natural phenomena emerge in the cosmos according to natural law. Moral precepts can be seen as natural laws of social interaction, while the emergence of civilization can be seen as a particular kind of natural phenomenon. But civilization in its current form is plagued by widespread extreme poverty and our society is threatening to produce a planetary ecological disaster. We are challenged by circumstances to create a sustainable and more just civilization. This will require a fuller respect of basic moral principles.

Civilizations thrive then collapse because they grow beyond what the natural environment can sustain. Economies boom then bust because they grow beyond what their resource bases can support. These sometimes wild swings may appear to be cyclical variations, but they actually reflect chaotic instabilities. The arc of civilization, the boom and bust of the business 'cycle' and the formation and collapse of real estate and financial bubbles are all similar phenomena seen at different time scales and different magnitudes, and with different enabling factors becoming scarce at the point of collapse. A closer adherence to basic moral principles would mean a dampening of these gyrations. Respect of moral precepts would keep natural variations within limits that would ensure that they would not pose an existential threat to the integrity of the system.

If we recognize a basic human right to define overall limits to environmental impacts, then, as citizens of a democratic society, we must acknowledge a corresponding responsibility to create a government that brings about the limits in reality that the average opinion of the people says are most appropriate. But our governmental institutions are not functioning in a way that ensures that actual impacts are within limits acceptable to most people. So we must change our institutions. We must change the way that we participate in the political process.

Increasing social instabilities and dwindling resources present us with a great challenge. A change in our thinking about property rights could offer a solution. Since the advent of civilization, we have developed the concept of private property rights. Now, if we look closely at our fundamental rights and moral duty in relation to the natural environment and our social environment, we can see the concept of public property rights emerging. A concept of public property rights is rooted in our innate sense that we have a right to use air and water and other natural resources. With public property rights respected, natural opportunities (natural wealth) will be shared equally. This concept of property rights implies that we also have a collective duty to define limits regarding the extent to which human beings will degrade, deplete and destroy these shared resources. A public property rights paradigm will emerge when we bring our actions in the political and economic realms more into alignment with basic moral principles. When we collectively resolve to only vote for lawmakers who support programs that will result in effective limits to adverse environmental impacts (limits consistent with the will of the people at large), then we will begin to carry out the duties that correspond to our public property claims.

As a kind of natural law, basic human rights must be respected. Society cannot hold together over the long term when basic rights are chronically and systematically neglected. When we carry out our collective duty to use our systems of governance and the political process to define effective limits to humans' environmental impacts, then our basic right to define these limits will be respected in practice.

We need to start accounting for economic externalities. Externalities are those side-effects of economic activity that are not reflected on the financial balance sheet of profit and loss, income and expense. Sometimes there are spillover effects produced by economic actors that actually benefit a community, but more often, externalities consist of negative side-effects of industrial and commercial activity. Externalities (also called 'market failure') can be seen as a way that producers (and consumers) foist environmental impact and depletion costs onto society and the larger community of life.

Pollution is a classic example of a negative externality. Resource degradation from excessive use or extraction of resources is another. Since these costs to society and to all life on Earth are not reflected in prices or in the cost of doing business, producers do not take into proper account the true costs of their actions. Corporations will pollute the air and water more and use up resources faster when the costs of doing so are hidden or partially hidden. In pursuit of higher profits, economic actors put effort into reducing costs that they can see on the balance sheet. When costs to society are not shown on profit-and-loss statements, businesses act as if those costs do not exist. Almost since we started carrying things (or since animals much like us started carrying things), we have traded based on what we could see as the costs and benefits of a transaction. But the effect of externalities is to prevent us from seeing clearly.

We know that natural resources are valuable—even indispensable—to industry and to society at large. Yet we allow industries to take and degrade natural wealth without any expectation that they will pay compensation for the damage done or value taken. A fee charged against those who take or degrade natural resource wealth is a tool that society can use to influence industrial and economic sectors, to en-sure that sufficient effort is put into resource conservation and sustainable business practices. This fee mechanism can replace other, less efficient means of managing natural resources. A fee would reflect the environmental costs of human activity on the financial bottom line. Costs now hidden would become apparent. Fee proceeds should be shared equally to all the world's people.

Charging fees on the taking or degradation of natural resources could moderate particular kinds of human economic activity, with the aim of keeping overall impacts within limits that most people find acceptable. This could ensure that the basic human right to collectively decide such limits (a mere theoretical construct) is respected in practice. The hope and expectation is that people would in fact choose to keep overall impacts within limits that the larger environment can sustain. Eternal vigilance by citizens will be required to ensure that a human population that has the ability to exceed what the Earth can sustain does not go beyond those limits in reality. It might be easy to persuade people that stricter limits on environmental impacts are preferable when it is understood that stricter limits will mean higher payments to the people by those who produce the adverse impacts. Higher fees charged to industries that pollute or deplete natural resources in pursuit of profit means higher payments to the people in the form of a natural wealth dividend. There is a happy coincidence of interests: What is good for the individual is also good for the community. Similarly, profit-seeking corporations will do things to save money and increase profit that will also benefit society and the larger environment.

Proceeds from environmental impact fees would be a monetary representation of the value of natural resource wealth. Equal sharing of these proceeds would buffer the downward slide of a shrinking economy, since the entire human population would continue to receive a modest income from shared natural resource wealth, independent of income from work, investments or family inheritance. A 'floor' on the loss of human confidence that causes or contributes to business contractions would be created. Spending in support of basic needs would continue, regardless of economic climate. Money will continue to flow to the most vital sectors of the economy. The part of the economy devoted to meeting basic needs would then be insulated from the worst vicissitudes of the business 'cycle'. With human-caused stresses on ecosystems and demands on natural resources kept sufficiently low through a fee mechanism, and with swings in the economic climate moderated, civilization becomes a more sustainable and more stable phenomenon.

The short answer for how to change institutions toward a public property rights paradigm of sustain-ability and moral responsibility would be to start voting green AND libertarian (or left-libertarian). A marriage of these threads from our political tradition would combine a good sense of the practical challenges and responsibilities of government (what government must do) with a principled understanding of the proper limits to government power (what government must refrain from doing). And the other short answer for how to make this change happen is to let people know it is possible.

Government power has limits to its authority, as does individual power and autonomy. Political activities (such as voting) must be moral undertakings to have good results. If we understand that governments get their just powers from the consent of the governed, then any moral foundation for governmental powers requires that we only delegate powers to government that we legitimately have as individuals. If we do not have authority to initiate the use of force or coercion against a peaceful person, then we cannot delegate this power to governments. We cannot legitimately use government to regulate others’ private actions. We cannot legitimately vote for politicians who would do so, either. Principled limits to governmental power and authority must be respected.

It is quite fitting that we should stop trying to regulate private behaviors as a matter of principle. Such a change may be absolutely necessary from a practical standpoint, too. Perhaps only by freeing-up the attention and resources now devoted to fighting drug wars and other wars can we have sufficient attention and resources available to meet the great challenges facing the entire human community.

An economy based on true-cost accounting will make material consumption cost more on the financial bottom line. This will reflect more honestly the fact that materialism costs much in terms of natural resources used. This new economy will spread material wealth more evenly across the human population, while improving the fluidity of the job market. (People will be more free to leave oppressive or disagreeable employment situations when their work income is not their sole source of income.) The new economy will limit pollution levels and rates of taking of natural resources so that they are within limits that most people agree are acceptable. We will have a more true democracy.

This change makes the chaotic thriving and collapse of civilizations (the large-scale version of the boom and bust of the business ‘cycle‘) into a less wildly gyrating phenomenon; still on the edge of chaos, perhaps (as are all living systems), but a potentially sustainable phenomenon.