DOES THIS DYNAMIC SPELL THE END OF CAPITALISM
Capitalism is in crisis and climate
change disruption is now beginning to hit the bottom line. Insurance companies
know this well. According to a report by the Bank of England, insured losses
have risen from $10 000 million in 1985 to $50 000 million in 2015. Climate change
cannot be reversed, and extreme weather events
will undoubtedly get worse in the future strengthening the disruptive effects
shown in the CLD. Another dynamic is that
companies will continue to automate and, as The Economic Policy Institute has shown,
fail to reflect productivity gains in workers' salaries. The result, stagnating
salaries is disastrous for demand, given that capitalism needs endlessly rising demand
and consumption. A further serious problem is that as climate change gets worse
there will be increasing demands for companies to assume their responsibility and
bear the costs of negative externalities. The CLD shows these factors which are likely
to lead to the collapse of the system: when capitalism can no longer generate 'capital'
it has stopped to serves any useful purpose.