Noam Chomsky: “Worship of Markets” Is Threatening Human Civilization
The first question and answer:
C.J. Polychroniou: Noam, looking at the current state of the world, I think it is not an exaggeration at all to say that we live in ominously dangerous times — and not simply in a period of great global complexity, confusion and uncertainty, which, after all, has been the “normal” state of the global political condition in the modem era. I believe, in fact, that we are in the midst of a whirlpool of events and developments that are eroding our capacity to manage human affairs in a way that is conducive to the attainment of a political and economic order based on stability, justice and sustainability. Indeed, the contemporary world is fraught, in my own mind at least, with perils and challenges that will test severely humanity’s ability to maintain a steady course toward anything resembling a civilized life.
How did we get to such a state of affairs, with tremendous economic inequalities and the resurgence of the irrational in political affairs on the one hand, and an uncanny capacity, on the other, to look away from the existential crises such as global warming and nuclear weapons which will surely destroy civilized life as we know it if we continue with “business as usual”?
Noam Chomsky: How indeed.
The question of how we got to this state of affairs is truly vast in scope, requiring not just inquiry into the origin and nature of social and cultural institutions but also into depths of human psychology that are barely understood. We can, however, take a much more modest stab at the questions, asking about certain highly consequential decisions that could have been made differently, and about specific cases where we can identify some of the roots of looking away.
The history of nuclear weapons provides some striking cases. One critical decision was in 1944, when Germany was out of the war and it was clear that the only target was Japan. One cannot really say that a decision was made to proceed nevertheless to create devices that could devastate Japan even more thoroughly, and in the longer term threaten to destroy us as well. It seems that the question never seriously arose, apart from such isolated figures as Joseph Rotblat — who was later barred reentry to the U.S.
Another critical decision that was not made was in the early 1950s. At the time, there were still no long-range delivery systems for nuclear weapons (ICBMs). It might have been possible to reach an agreement with Russia to bar their development. That was a plausible surmise at the time, and release of Russian archives makes it seem an even more likely prospect. Remarkably, there is no trace of any consideration of pursuing steps to bar the only weapons systems that would pose a lethal threat to the U.S., so we learn from McGeorge Bundy’s standard work on the history of nuclear weapons, with access to the highest-level sources. Perhaps still more remarkably, there has, to my knowledge, been no voiced interest in this astonishing fact.
It is easy to go on. The result is 75 years of living under the threat of virtually total destruction, particularly since the successful development of thermonuclear weapons by 1953 — in this case a decision, rather than lack of one. And as the record shows all too graphically, it is a virtual miracle that we have survived the nuclear age thus far.
That raises your question of why we look away. I do not understand it, and never have. The question has been on my mind almost constantly since that grim day in August 1945 when we heard the news that an atom bomb had wiped out Hiroshima, with hideous casualties. Apart from the terrible tragedy itself, it was at once clear that human intelligence had devised the means to destroy us all — not quite yet, but there could be little doubt that once the genie was out of the bottle, technological developments would carry the threat to the end. I was then a junior counselor in a summer camp. The news was broadcast in the morning. Everyone listened — and then went off to the planned activity — a baseball game, swimming, whatever was scheduled. I couldn’t believe it. I was so shocked I just took off into the woods and sat by myself for several hours. I still can’t believe it, or understand how that has persisted even as more has been learned about the threats. The same sentiments have been voiced by others, recently by William Perry [former defense secretary], who has ample experience on the inside. He reports that he is doubly terrified: by the growing risk of terrible catastrophe, and the failure to be terrified by it.
It was not known in 1945, but the world was then entering into a new geological epoch, the Anthropocene, in which human activity is having a severe impact on the environment that sustains life. Warnings about the potential threat of global warming date back to a 1958 paper by Hans Suess and Roger Revelle, and by the 1970s, concerns were deeply troubling to climate scientists. ExxonMobil scientists were in the forefront of spelling out the severe dangers. That is the background for a crucial decision by ExxonMobil management in 1989, after (and perhaps because) James Hansen had brought the grave threat to public attention. In 1989, management decided to lead the denialist campaign.
That continues to the present. ExxonMobil now proudly declares that it intends to extract and sell all of the 25 billion barrels in its current reserves, while continuing to seek new sources.
Executives are surely aware that this is virtually a death-knell for organized human society in any form that we know, but evidently it doesn’t matter. Looking away with a vengeance.
The suicidal impulses of the fossil fuel industry have been strongly supported by Republican administrations, by now, under Trump, leaving the U.S. in splendid isolation internationally in not only refusing to participate in international efforts to address this existential threat but in devoting major efforts to accelerate the race to disaster.
It is hard to find proper words to describe what is happening — and the limited attention it receives.
This again raises your question of how we can look away. For ExxonMobil, the explanation is simple enough: The logic of the capitalist market rules — what Joseph Stiglitz 25 years ago called the “religion” that markets know best. The same reasoning extends beyond, for example to the major banks that are pouring funds into fossil fuel extraction, including the most dangerous, like Canadian tar sands, surely in full awareness of the consequences.
CEOs face a choice: They can seek to maximize profit and market share, and (consciously) labor to undermine the prospects for life on earth; or they can refuse to do so, and be removed and replaced by someone who will. The problems are not just individual; they are institutional, hence much deeper and harder to overcome.
Something similar holds for media. In the best newspapers there are regular articles by the finest journalists applauding the fracking revolution and the opening of new areas for exploitation, driving the U.S. well ahead of Saudi Arabia in the race to destroy human civilization. Sometimes there are a few words about environmental effects: fracking in Wyoming may harm the water supplies for ranchers. But scarcely if ever is there a word on the effect on the planet — which is, surely, well understood by authors and editors.
In this case, I suppose the explanation is professionalism. The ethics of the profession requires “objectivity”: reporting accurately what is going on “within the beltway” and in executive suites, and keeping to the assigned story. To add a word about the lethal broader impact would be “bias,” reserved for the opinion pages.
There are countless illustrations, but I think something deeper may be involved, something related to the “religion” that Stiglitz criticized. Worship of markets has many effects. One we see in the origins of the reigning neoliberal faiths. Their origin is in post-World War I Vienna, after the collapse of the trading system within the Hapsburg empire. Ludwig von Mises and his associates fashioned the basic doctrines that were quickly labeled “neoliberalism,” based on the principle of “sound economics”: markets know best, no interference with them is tolerable.
There are immediate consequences. One is that labor unions, which interfere with flexibility of labor markets, must be destroyed, along with social democratic measures. Mises openly welcomed the crushing of the vibrant Austrian unions and social democracy by state violence in 1928, laying the groundwork for Austrian fascism. Which Mises welcomed as well. He became economic consultant to the proto-fascist Austrian Chancellor Engelbert Dollfuss, and in his major work Liberalism, explained that “It cannot be denied that Fascism and similar movements aiming at the establishment of dictatorships are full of the best intentions and that their intervention has, for the moment, saved European civilization. The merit that Fascism has thereby won for itself will live on eternally in history.”
These themes resonate through the modern neoliberal era. The U.S. has an unusually violent labor history, but the attack on unions gained new force under Reagan with the onset of the neoliberal era. As the business press reported, employers were effectively informed that labor laws would not be enforced, and the U.S. became the only industrial society apart from Apartheid South Africa to tolerate not just scabs, but even “permanent replacement workers.” Neoliberal globalization, precarity of employment, and other devices carry the process of destroying organized labor further.
These developments form a core part of the efforts to realize the Thatcherite dictum that “there is no society,” only atomized individuals, who face the forces of “sound economics” alone — becoming what Marx called “a sack of potatoes” in his condemnation of the policies of the authoritarian rulers of mid-19th century Europe.
A sack of potatoes cannot react in any sensible way even to existential crises. Lacking the very bases of deliberative democracy, such as functioning labor unions and other organizations, people have little choice beyond “looking away.” What can they hope to do? As Mises memorably explained, echoed by Milton Friedman and others, political democracy is superfluous — indeed an impediment to sound economics: “free competition does all that is needed” in markets that function without interference.
The pathology is not new, but can become more severe under supportive social and economic institutions and practices.