I posted my thoughts on Bear Stearns right after it collapsed. But a deeper problem even than the money-drunk nature of our culture is the way we count.
Our economic system hasn’t yet learned how to count in a way that reflects reality. Natural systems like air, soil and water (also known as the primary world) are holding up our whole civilization. Our economy is predicated on them and would collapse in their absence. Yet we assign them no value in our Gross Domestic Product, which unfortunately gives us every incentive to squander them in the course of making and consuming the things that are counted in GDP. Most of those things, in turn, contribute very little to our happiness.
The other thing we need to learn to count is carbon emissions. They’re the primary drivers of global warming and all of us are creating them every time we drive and fly and most of the time that we use electricity. If carbon emissions were counted and taxed we would create them more sparingly. They’re not taxed, partly because we haven’t figured out how to count them, and also because we lack the public and political will to do it.
All the market players, government, businesses and individuals alike, will be continuing to operate in economic unreality until we have a carbon tax and also accurate valuations of what natural resources actually contribute to the economy. The cost of these delusions, of our not knowing how to count, is exponentially escalating climate change with economic impacts that will make the Bear Stearns collapse look like a fond memory.