Natural Capitalism Précis

Natural Capitalism Précis

“Natural Capitalism” by Paul Hawken argues that environmental and social problems are linked and that both can be solved by moving from a capitalist system that does not value natural capital to one that values natural capital. Natural capital includes both the renewable and non-renewable goods and services provided by nature. The value of the goods provided by nature have been considered in business such as the value of wood, coal, fish, and oil, but the value of the services provided by nature have not been considered. The services provided by nature include clean air, water, soil, and a stable climate. The contribution nature makes in sustaining these natural systems has not been considered in accounting in capitalist systems. If the services nature provided were considered on the balance sheet it would be make more economic sense to conserve rather than promoting being wasteful as our current economic system does. The shift from capitalism to natural capitalism is not only as presented as a solution to environmental problems, but social problems as well.

Hawken believes that social problems are due to mass unemployment and underemployment of “nearly one-third of the world’s workers” created by the current economic system. According to Hawken “sense that they have no value in the present economic system” and then “act out society’s verdict in shocking ways”. Natural capitalism argues that by increasing employment people can be steered toward acting in a way acceptable to the text’s intended audience. Hawken figures poor people as needing to be given a sense of value he believes they are missing by tying them closer to the capitalist system. By altering the tax system to favor the use of human resource use rather than the use of physical resources Hawken believes businesses will move to increase employment.

Natural capitalism expects businesses to respond to tax and policy changes through both new technologies to increase sustainability and a shift from providing goods to providing services. Hawken decries the idea that technology can solve all of the environmental problems, but then idolizes the power of potential new technologies stating new technologies, “are lining up like salmon to swim upstream toward greater resource productivity”. The piece then goes on to critique government subsidies of technologies that turned out to be failures, failing to recognize the fact that scientific research cannot have explicitly predicted ends. He does not understand the fact that when one sets out to research something they do not know what the results of the research will be. It is unclear how the government should decide what research to fund and what not to fund without the explicit ends of the research, which they do not have when deciding what to fund. Natural capitalism argues for funding some research, but ridicules when such funding results in what Hawken refers to as duds. Hawken also supports government intervention to change businesses from providing goods to services. By concentrating ownership among a few and having a myriad of leasers, rather than selling goods to create mainly owners natural capitalism believes waste can be cut.

Natural capitalism cites science for the legitimacy of the argument. Hawken believes that capitalism is already a system based on natural principles stating, “at the heart of capitalism, the idea that markets have a power that mimics life and evolution” and that by incorporating quantizing nature one can create a system that models nature. Hawken uses ties to scientificity to legitimize his argument, but he does not appear to understand basic biology and ecology. Natural capitalism according to Hawken, is a system “where the quality of consumer services continues to improve… a society where we have useful and worthy work available than people to do it.” The idea of a carrying capacity does not stop Hawken’s belief in the potential for continual growth in an economic system that he says models natural systems. Furthermore by suggesting the quantization of nature Hawken indicates that he does not understand the idea of continuity in nature and co-dependence of organisms on one another. Rather, Hawken sees nature as a set of independent dividable entities.

Natural capitalism is aimed at members of society benefiting from the current economic system who acknowledge that the current economic system is negatively impacting the environment. I think that I would be part of the intended audience. Reading this piece as part of the intended audience has made inaccuracies in the text, especially in the claims to scientificity seem extremely prominent and insulting to me as the reader. The text works to assure the reader that changes to improve the environment will not come at the cost of their lifestyle by continually citing how life will continue to improve. The argument works to find a compromise between maintaining the current wasteful economic system and the massive changes necessary to avoid and mitigate environmental damage. By being so overly confident about the ability of simple changes to solve the environmental crisis natural capitalism reassures readers that they will not have to compromise their lifestyles. The piece does seek to encourage a change to the government’s tax system and business practices to incorporate natural capital onto their balance sheets. Natural capitalism seeks to maintain the current economic stratification, while solving the environmental crisis and ending problems caused by the economically disadvantaged to the intended audience of the piece.

- Kelsey A. Mulherin