Economies of Scale, Ecology for Sale
The Problem
Capitalism emphasizes individualism and competition while downplaying the relevance of interdependence and coexistence. The fiction of money, and the illusion of a free market, coined and fuelled by mankind's fundamental disconnect with nature has resulted in a patriarchal paradigm that rewards the pursuit of personal greed, and extractive profit at the cost of collective prosperity and infusive generosity. Proponents of capitalism argue that it can foster innovation, entrepreneurship, and economic growth, leading to increased living standards and opportunities for citizens. While this is not untrue, it must be questioned why human ingenuity can only be fostered by a framework that operates at odds with the biosphere. We buy into these archaic concepts manufactured by the limited minds of one demographic as universal truths and inalienable absolutes when the validity of every aspect should be questioned and discarded for more inclusive, biomimetic modalities.
The concept of capitalism is advantageous to those who occupy its helm, who stand to gain most from its predisposition towards wealth concentration, social stratification, and ecological degradation. Those in charge thus condescendingly claim that this flawed system is the best way to incentivize people to work hard and break new ground to create value that can benefit society as a whole. What they omit from public understanding is that this value passes through and to their pockets before they decide how it trickles back down to society as a whole. This is covered in depth by Anand Giridharadas in his book Winners Take All, and by Vandana Shiva in Oneness vs. the 1%, and while I agree with some of their perspectives, I believe there is an assimilative way forward.
Economies of scale are a byproduct of capitalistic thinking, as manufacturing on a larger scale helps organizations optimize their inputs and maximize their outputs. When companies can produce goods or provide services on a larger scale, they often experience lower costs per unit, which can lead to higher profits. However, achieving economies of scale often requires streamlining processes, increasing automation, and minimizing expenses, which can come at the expense of ethical considerations.
It can be observed that the pursuit of economies of scale invariably leads to the commodification of the global commons, which devalues the intrinsic value of living organisms and disregards the unique needs and experiences of different people. Industrial pipelines have sacrificed empathy for efficiency, despite the two attributes not being mutually exclusive, by creating distance between the "how" of manufacturing and the "what" consumers receive as an end product. By incrementally widening the gap between sourcing, supply chains, and sales registers, corporations have reduced the average person's awareness of a transactional instance's ecological and social footprint. This creates a sense of detachment, allowing human rights violations and cruelties to go unnoticed or ignored. It is essential for consumers to be aware of the origins of the products they buy, demand greater transparency, and support companies that prioritize ethical practices. Externalised and subsidised costs paid by biodiversity and those who can least afford it, fail to get accounted for by one's moral compass as we grow increasingly oblivious of cause and consequence at checkout. Economies of scale thus perpetuate an "out of sight, out of mind" apathy in all system stakeholders, eroding everyone's sense of humanity one swipe at a time.
There are a few ways capitalism and economies of scale contribute to the loss of an introspective conscience in human beings worldwide:
1. Profit maximization: In a capitalist system, the primary motive of businesses is to maximize profit. This often leads to a focus on short-term gains, sometimes at the expense of long-term sustainability. This profit-driven approach can neglect social and environmental considerations, leading to exploitation and harm to both people and the biosphere.
2. Consumerism and materialism: Capitalism thrives on consumerism, which promotes the constant pursuit of material possessions and economic growth. This relentless pursuit can lead to the overconsumption of resources, depletion of natural ecosystems, and utter indifference toward the health and integrity of the biosphere.
3. Social inequality and inequity: Capitalism tends to generate disparities in wealth and power distribution. This can result in unequal access to resources, opportunities, and decision-making processes that impact the environment. As a consequence, some people become apathetic toward the living biosphere because they are not directly affected by its degradation, while others become victims of it.
4. Externalizing costs: In pursuit of profit, businesses often shift costs, including environmental and social burdens, onto society and future generations. This can lead to the degradation of ecosystems, climate change, and other forms of environmental harm, which, in turn, can erode people's sense of connection and responsibility toward both wildlife and fellow human beings.
When businesses and organizations operate on a larger scale, the pursuit of profits and power invariably overshadows ethical considerations. Capitalism's proclivity to advance economic growth at the expense of workers' rights, societal fairness, and environmental sustainability results in four deleterious attitudes: greed, corruption, apathy, and cruelty, that compromise our collective futures globally. These behavioral and psychological patterns trend toward self-destruction, yet we are unable to curb our egocentrism.
Greed tends to flourish in economies of scale as the potential for increased profits becomes more substantial. When companies opt to mass-produce and distribute goods or services across international markets, the desire for exponential growth and excessive profits result in exploitative practices that embrace intentional negligence so they can beg for forgiveness instead of asking for permission. Abusive conduct can range from human rights violations like underpaying workers, child labor, lack of safety, increased health risks, and compromised working conditions to environmental transgressions like cutting corners on product quality, animal welfare brutalities, denuding habitats, illegally dumping, unprocessed waste disposal, managed resource depletion, excessive packaging, and unrestricted emissions. In these situations, the focus shifts solely towards magnifying financial gains, often to the disservice of the many in favor of the few, and the damage of fragile, irreplaceable ecosystems to champion a discount on price.
Corruption can also thrive in scaled economies. With increased consolidation and market dominance, powerful corporations may gain significant influence over governments and regulatory bodies, leading to a decline in transparency and accountability. This allows for unethical practices such as bribery, lobbying, or the manipulation of regulations to their advantage, further widening the wealth gap and hindering fair competition.
Apathy can arise in scaled economies when decision-makers become disconnected from the wild and human lives affected by their actions. As businesses expand, it becomes more challenging to maintain personal connections or empathize with the plight of employees or communities impacted by their operations. This disconnect can lead to a lack of concern for the well-being of others, resulting in apathetic decision-making that prioritizes financial gain over social or environmental responsibility.
Cruelty scales with mechanization, as proficiency is devoid of personhood, and it begins to view lives as lines (barcodes) that can be scanned at checkout. No one, no organization, ventures out with the intent to be malicious, but since economies of scale place greater space between the hand that slaughters and the hand that serves a life at a restaurant, desensitization becomes the status quo and the unethical treatment of living beings in factories, fisheries, mines, and abattoirs all become normalized. In economies of scale, everything, including human labor, becomes either a balance sheet entry or labeled inventory, and both can be bought, sold, and/or bartered. This oversimplification of ethical and emotional complexities is a consequence of the commodification and devaluation of human life and the manipulation of natural resources. Cruelty disregards genuine worth to augment gross value. The relentless drive for growth and profit in capitalism causes the systemic erosion of our humanity, and worse the paradigm rewards sociopathic comport with blood money bonuses. Operating devoid of comprehensive, conscientious regulatory checks and balances is qualified as strategic, and lacking compunction, compassion, and common sense is portrayed as successful.
As the focus shifts towards endlessly enhancing economic output, essential qualities such as empathy, kindness, and compassion can be overshadowed or even discouraged. This attrition of human values can impact not only interpersonal relationships but also societal well-being, often leading to a loss of social cohesion and resulting in a diminished sense of community.
In conclusion, while economies of scale undoubtedly offer benefits in terms of efficiency and cost reduction, it is essential to recognize and address the potential negative consequences. It is crucial to foster ethical business practices, encourage responsible governance, and promote a more balanced approach that values human needs, environmental sustainability, and social justice, ultimately restoring our humanity and compassion within capitalist systems.