Greatest Danger to Capitalism? (Hint: It isn't "Treehuggers")

The main dangers to the success of capitalism are the very people who would consider themselves its most ardent advocates : the investors who insist on profits, the management of these companies, and the politicians who tirelessly insist that they are 'pro-business'."

From The Economist:

"Many of the corporate scandals that America, especially, has endured in recent years reflect outright criminality. A lawful order knows what to do with criminals, and pro-business politicians are in truth militantly anti-capitalist if they flinch from cracking down on bosses' crimes."

"...widespread and quite outrageous abuse, by capitalists, of capitalism... The danger exists everywhere in the world, but it matters most in the United States."

The Economist, Special 160th Anniversary Issue, A Survey of Capitalism and Democracy, June 26-July 4, 2003

..............................................

Politicians strain to outdo each other with promises to 'get tough' on crime and to bring law and order back to the streets.There is no question that common street crime is an important social concern. But its image has become so bloated in the mirror of public opinion that it blocks our view of the white collar crimes which are both more costly and more dangerous to society."

James Coleman. The Criminal Elite. 1985. St. Martin's Press

.............................................

Here's an example of that beloved unfettered capitalism....

Groundwater depletion and sustainability of irrigation 

in the US High Plains and Central Valley. 

Proceedings of the National Academy of Sciences USA
www.pnas.org/cgi/doi/10.1073/pnas.1200311109

Bridget R. Scanlona,  Claudia C. Fauntb, Laurent Longuevergnec, Robert C. Reedya, William M. Alleyb, Virginia L. McGuired, and Peter B. McMahone

Bureau of Economic Geology, Jackson School of Geosciences, University of Texas at Austin, Austin, TX 78713-8924;

Geosciences Rennes, University de Rennes, Rennes Cedex, France

Edited by William A. Jury, University of California, Riverside, CA, and approved March 14, 2012 (received for review January 10, 2012)

Abstract

Aquifer over-exploitation could significantly impact crop production in the United States because 60% of irrigation relies on groundwater. Groundwater depletion in the irrigated High Plains and California Central Valley accounts for 50% of groundwater depletion in the United States since 1900. A newly developed High Plains recharge map shows that high recharge in the northern High Plains results in sustainable pumpage, whereas lower re-charge in the central and southern High Plains has resulted in focused depletion of 330 km3 of fossil groundwater, mostly recharged during the past 13,000 y. Depletion is highly localized with about a third of depletion occurring in 4% of the High Plains land area. Extrapolation of the current depletion rate suggests that 35% of the southern High Plains will be unable to support irrigation within the next 30 y. Reducing irrigation withdrawals could extend the lifespan of the aquifer but would not result in sustainable management of this fossil groundwater. The Central Valley is a more dynamic, engineered system, with north/south diversions of surface water since the 1950s contributing to higher recharge.  However, these diversions are regulated because of impacts on endangered species. A newly developed Central Valley Hydrologic Model shows that groundwater depletion since the 1960s, totaling 80 km3, occurs mostly in the south (Tulare Basin) and primarily during droughts. Increasing water storage through artificial recharge of excess surface water in aquifers by up to 3 km3 shows promise for coping with droughts and improving sustainability of groundwater resources in the Central Valley.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

So we can see how capitalism will push businesses to eat their seed stock to maximize profits in the short term.  I suppose those trading in derivatives of these markets are thinking they can gamble their way out, or perhaps this leads to businesses who need to be bailed out by the taxpayers later on.  This is obviously unsustainable, and will inevitably be challenged.  Investors and those profiteering from the depletion of non-renewable resources are their own worst enemies.