We Should Fix Climate Change, But We Should Not Regret It

Climate change is a huge and urgent problem. It is natural to suppose that it is therefore a terrible mistake, an unforced error that we should regret and try to prevent ever happening again.

I disagree. Climate change is the unfortunate outcome of the economic growth that has transformed human civilisation for the better. We cannot regret climate change without regretting the vastly better world for most people that the fossil-fuel powered technological revolutions of the last 250 years have achieved. Nor should we draw the anti-technology lesson that solutions are always worse than the original problems, that humans should retreat to living within the bounds of nature rather than attempting to escape them.

Why Governments Failed the Challenge of Covid and Capitalism Succeeded

Capitalism has had a good Covid. While governments of every political hue seem to stumble from one crisis to the next, for profit corporations stepped up to deliver our food and consumer goods to our doors, reroute disrupted supply chains, manufacture huge amounts of PPE, and develop multiple safe and effective vaccines in record time. I put this triumph of capitalism over statecraft down to two factors in particular. 

1. Corporations are better at globalisation than national governments 
2. Political incentives are less well aligned with the public interest than those for corporations

How Is It No One's Job To Defend Democracy?

Why did it take until now for a critical mass of key players to take a stand against Trump's assault on democracy? Why wasn't it already enough when he pointedly declined to promise to accept the results of the election if he lost, during the 2016 presidential debates?

Liberal democracy is like capitalism, a game designed to make its players compete against each other for points and prizes. Competition is the driving force behind the real benefits such systems achieve, but the logic of competition also imprisons its players to stay within their roles. It is no one's job to defend the system of rules governing that competition. As a result, democracies are surprisingly vulnerable to take over, as we have seen from the recent examples of Turkey, Hungary, and (ongoing) India.

Can Corporations Be ‘Good Citizens’?

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The idea of ‘good corporate citizenship’ has become popular recently among business ethicists and corporate leaders. You may have noticed its appearance on corporate websites and CEO speeches. But what does it mean and does it matter? Is it any more than a new species of public relations flimflam to set beside terms like ‘corporate social responsibility’ and the ‘triple bottom line’? Is it just a metaphor?

The history of the term does not promise much. It does indeed seem to have evolved out of corporate speak – how corporations represent themselves rather than how they view themselves – selected, perhaps, for sounding reassuring but vague. Its popularity has far preceded its definition; ‘corporate citizenship’ is still evolving, looking for a place to settle.

But what it is about is important. For it represents a political turn to the old question, Who are corporations for and how is their power to be managed? Are corporations bound to serve society’s interest, or are they free to follow their own? Are they public institutions, part of the governance of our society and publicly accountable to us for their actions, or are they private associations accountable only to their managers and owners?

Invisible Hand Ethics

"[B]y directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention….By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it. I have never known much good done by those who affected to trade for the public good." (Adam Smith, The Wealth of Nations, IV.2.9)

Doing right by others is difficult and time-consuming. Hence the attraction of what I call Invisible Hand Ethics, in which we mind our own business and the ethics takes care of itself.

This is modelled on Adam Smith's famous account of how the overall outcome of lots of self-interested actions in the economic sphere can be good for society as a whole. Bakers just want to make a buck, but their self-interest produces the bread that feeds the people. Their competition for sales keeps prices down. The customers in turn just want the cheapest best bread, but wind up helping the best bakers make a good living. You get the idea. Smith argued that in the economic domain this could be a far more reliable mechanism for achieving good outcomes than good intentions.