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54 pages 1 hour read

Naomi Oreskes

The Collapse of Western Civilization

Fiction | Novel | Adult | Published in 2014

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Chapter 3-EpilogueChapter Summaries & Analyses

Chapter 3 Summary: “Market Failure”

A 2300 map of New York shows the state mostly under water.

Although humans were aware of the impending climate crisis, they failed to act, largely because of widespread reliance on “positivism and market fundamentalism.” Positivism, often attributed to the philosopher Auguste Comte, holds that knowledge is achieved through observation; it is similar to “Baconianism,” a philosophy that states that knowledge and empowerment can be gained through observation, experience, and experimentation.

Knowledge, however, does not result in power, as demonstrated through the widespread knowledge of climate change and the failure to act to prevent it. Rather, power remained within social institutions that supported the fossil fuel industry—a system referred to as the “carbon-combustion complex.” Organizations within this system spread disinformation that was reported alongside climate facts, giving the illusion that the disinformation supplied valid counterarguments when, instead, it supported the continuation of the carbon-combustion complex. While some scientists attempted to push back, many in Western society favored emotionally charged politics and market fundamentalism while rejecting science.

Market fundamentalism is an ideology that a free or unregulated market is the most efficient method of meeting social needs. The so-called “invisible hand” of the market would inherently mitigate supply and demand, balancing power distribution while promoting personal freedom. Neoliberalism, an element of free market fundamentalism, focuses on the connection between freedom and the free market—“to protect personal liberty—political, civic, religious, artistic—economic liberty had to be preserved” (38). These idealistic ideas originated in the 1700s and 1800s in monarchal countries and influenced social and governmental conditions in multiple countries, including the US and France.

In the 1800s, industrialists rose to power, which challenged the idea of weak governments. Philosopher Karl Marx spoke out against capitalism, arguing that corrupt industrialists exploited employees and disrupted democracy. Multiple nations were inspired by Karl Marx and adopted communism, while other governments enacted reforms, such as the abolition of slavery and the development of anti-monopoly “antitrust laws” in the US. In the early 1900s, people recognized that free market capitalism was detrimental, and after The Great Depression and World War II, many nations adopted “mixed” economic systems that combined free market principles with government regulations.

Communism was found to be worse than capitalism, as it enabled dictatorship while failing to provide adequate goods and services. In the 1900s under Joseph Stalin, the dictator of Soviet Russia, and Mao Zedong, a Chinese dictator, millions perished. The Cold War followed World War II, resulting in a battle between communist and capitalist ideals. As a result, the Western world largely rejected government interventions, even those that would be beneficial, such as affordable healthcare and environmental regulation.

Neoliberalism was promoted by individuals such as Friedrich von Hayek and Milton Friedman, who viewed centralized governments as oppressive and who argued that personal freedom required free market economics. While neoliberalism was initially unpopular, it gained traction in the 1980s after Western economic growth flattened. The historian notes irony in the idea that von Hayek recognized the importance of science; however, after studies suggested government market intervention was necessary to protect humans and the environment, the science was rejected.

After the Cold War, the First People’s Republic of China enacted reforms while the Soviet Union collapsed, and this collapse was used to support the superiority of capitalism. Industrialists and their financial backers urged the need for a purer form of capitalism, which catalyzed a series of deregulations leading to severe power and wealth inequality. Despite widespread support of neoliberalism, the free market system failed, as it could not address major environmental concerns. The necessary government interventions were rejected by neoliberals.

The public generally denied climate change, immobilizing political leaders, and as climate change and market failure became undeniable, scientists were blamed. Scientists and artists encouraged the “precautionary principle,” which promoted preventative actions to avoid later consequences. While this notion had previously been common sense, it was rare after the rise of neoliberalism. Neoliberalism prevented the development of renewable energy sources by inhibiting planning for the future, reducing society to disaster mitigation rather than disaster prevention.

Some, including von Hayek, recognized the harms of the so-called free market and the need for government intervention. Von Hayek noted several areas of acceptable government interference, such as in preserving the environment and limiting dangerous materials; these protections, he argued, were worth limiting the freedom of some individuals and organizations. The neoliberalist rejection of government interference ironically led to necessary government interference to mitigate the consequences of climate change.

Epilogue Summary

A 2300 map of Florida shows approximately 50 percent of the state under water.

During the Great Collapse, democratic governments failed to mitigate the crisis. However, governments that had previously been communist, such as China, fared better, as they provided strong governments and relative personal liberty. China adapted to rising seas by relocating citizens to inland cities with an 80 percent survival rate. The Second People’s Republic of China was also called neo-communist China, as were other similar nations. The historian reiterates the irony in the fact neoliberalism led to the rise of neo-communism.

The climate has since stabilized, and society often reflects on the Penumbral Period in discussions on re-democratizing. However, the idea is constrained to academic discussions, as most people reject the idea.

Chapter 3-Epilogue Analysis

The final chapter and the Epilogue elucidate the carbon-combustion complex, and they identify several instances of real-world irony. The historian begins by addressing the irony in Baconianism. Baconianism suggests that those who understand climate change will naturally have the power to stop it; however, the historian points out that this was not the case—power resided within the carbon-combustion complex, defined by the historian as the following:

a network of powerful industries comprising fossil fuel producers, industries that served energy companies (such as drilling and oil field service companies and large construction firms), manufacturers whose products relied on inexpensive energy (especially automobiles and aviation, but also aluminum and other forms of smelting and mineral processing), financial institutions that serviced their capital demands, and advertising, public relations, and marketing firms who promoted their products (36).

The detailed definition of the carbon-combustion complex serves to show how deeply engrained fossil fuels are in real-world modern society, particularly in the developed nations of the Western world, thereby raising the Logical Fallacies of Neoliberalism and the Free Market. By emphasizing the idea that modern infrastructure depends on the carbon-combustion complex, the authors suggest that individuals—including the reader—are not ignorant and complicit with climate change, but are instead constricted by a society built on utilizing and protecting fossil fuel industries. It also suggests that Baconianism is invalid, at least within the confines of capitalism, as individuals in capitalist societies are empowered not by knowledge but by money.

The self-regulatory expectations of capitalism are satirized through both the allusion to The Great Depression and through environmental degradation and climate change caused by mass industry. The mention of The Great Depression is ironic in that one might expect society to adopt different economic forms after such a massive market failure. However, the Western world continued to utilize capitalistic systems, in part because communist governments also failed.

Through this, the authors imply that capitalism remained popular because of political tensions and human pride, which “fostered a harshly polarized view of economic systems, with ‘communists’ decrying the corruption of the capitalist system and ‘capitalists’ condemning the tyranny and violence in communist regimes” (41). This further negates the idea that the “invisible hand” will inherently regulate capitalism to meet human needs or address the existence of environmental degradation and climate change. While capitalism might meet the economic needs of those in power, it ignores human well-being and promotes environmental degradation via the pursuits of resources, production, and distribution.

An additional source of irony is found through Hayek’s support of reasonable government intervention. Hayek and other neoliberalists supported government funding of science when it benefitted the status quo, but rejected it when facing climate change—“when environmental science showed that government action was needed to protect citizens and the natural environment from unintended harms, the carbon-combustion complex began to treat science as an enemy to be fought by whatever means necessary” (43). Along with satirizing capitalism, these historical reflections also portray the importance of history in identifying patterns and issues in order to build a better future.

The fictional rise of communism is another source of situational irony. The communist foundations in China supplied the nation with a strong central government. This, along with the development of net-zero-carbon infrastructure, allowed China to adapt to climate change and to remain a powerful social and political force while the neoliberal and capitalistic Western nations collapsed. Thus, neoliberalism, which is severely opposed to government interference, created the conditions for neo-communism: “By blocking anticipatory action, neoliberals did more than expose the tragic flaws in their own system: they fostered expansion of the forms of governance they most abhorred” (52). While the authors do not support communism as it has been known thus far, they suggest that the underlying principles of communism, like promoting equality and the common good via governmental regulation, are beneficial.

The collapse of the Western free market system also suggests that the collapse of capitalism may be avoidable if neoliberalism is replaced with a political philosophy that accepts governmental regulation, and which measures success by overall well-being rather than consumption. Both these interpretations impart the overall message that, currently, no political or economic forms in place are properly addressing climate change, meaning humans need to invent a new system to mitigate climate change.

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