While writing my explanation on the economic definitions of Commons and their sibling good types, I kept coming back to a particular page near the end of Catherine Knight’s book. This section is frustrating to read for many reasons, and when trying to explain why, it kept adding length to the original post. Here are my thoughts on pages 203-205 of An Uncommon Land:
The section is titled ‘The Real Tragedy of the Commons’ and opens with a famous quote from Hardin’s original essay, which nicely summarises the tragedy discussed in the first post. Although, Hardin’s essay remains highly readable, and I recommend people just go and look at his original words. Yet the quote is here so that Knight can adapt it to a strange purpose. She begins with: “Having jettisoned land and the biosphere from the accepted model of ‘the economy’, conventional economic theory ignores limits to growth inherent in a world with finite resources – instead advancing the much more alluring idea that, mathematically speaking, growth is limitless.”
I am familiar with this sentiment from the uneducated, it is usually an accusation along the lines of ‘how can we achieve infinite growth in a finite world?’. In fact, when I started studying economics in high school, my own uncle parroted this line to me before I’d even started the class. Back then my 15 year old self sagely replied ‘Good question’ and then changed the subject. Unfortunately, despite being a nicely worded quip that no one can reasonably deny, Macroeconomics’ use of the word ‘growth’ is quite specifically not growth of available resources, or any other physical measure. Growth is the word used to describe a positive change in the level of Gross Domestic Product (GDP), a widely criticised measure of the size of an economy. Macroeconomists invariably tinker with their definitions, but none of them move the goal posts away from a statistical measure of economic size.
The size of an economy may grow infinitely. This is a trick of the measurement, and any economist knows this. The heat death of the universe, or perhaps the engulfing of Earth by the Sun, will render our economy down to zero in the end, but only because everyone will be dead. GDP is a subjective measure; it requires a living human and a market transaction to record a value.
Imagine for a moment an ounce of gold floating in the mantle of the Earth, happily unrefined and making up a small but important component of the mass of the planet we all stand on. That gold has never influenced GDP. Now, take that gold out from under the ground (at great expense), refine it, and place it in my hands, and there we will see economic growth. The atoms of gold are unchanged; them being in my hands is what makes them valuable, and what causes the economy to grow. If you smile at me, and I value that interaction, we’ve economically grown, however it wouldn’t come up in a GDP measurement because no transaction was made. Therefore, the real size of the economy is never truly known, only the measurable size, however either way, the size is determined by people’s subjective value of things, experiences and ideas around them. The economy grows when new forms of digital entertainment are created; that alone should tell you that growth can continue way beyond its current level without having a smidge of impact on the biosphere. Much of the economic growth we have experienced in the digital age has simply been found due to coordinating, communicating, collaborating with each other has become less costly; we are not even building new products, just chatting to each other more often makes a difference to economic growth.
Ultimately, telling an economist that we have been captured by the “alluring idea that, mathematically speaking [what even is that?], growth is limitless” is only telling us how little you understand our mathematical way of speaking.
I would have loved to see the reference that Knight is alluding to when she claims that economists have “jettisoned land and the biosphere from the accepted model of ‘the economy’”, but there is none on this page. I have read the whole book, but I can’t keep every line in my head at once, so likely this claim was backed up in an earlier reference. There is so much to disagree with here that I will simply state that ‘the economy’ does not ignore land or the biosphere. This statement is simply false, or a gross misrepresentation of the discipline that is hosting Knight as a tourist.
Knight then goes on to claim that the earliest economic thinkers did consider land and the biosphere, referencing Thomas Malthus, Adam Smith and John Stuart Mill. These three titans of economic thought did, in fact, all write about land and the biosphere, and so did every great economist since. It appears that as a historian, Knight won’t look beyond the 19th century for facts, but if she did, she’d find we never stopped discussing these important topics, and we never ‘jettisoned’ them from our discourse.
Continuing, Knight claims “As we collide with the limits that Mill portended… the over-exploitation of Earth’s resources – we are blinded by the prospect that yet more consumption (in new, ‘green’ technologies) will fix things.”.
There is much to unpack here.
To keep things very simple: the World’s Governments have failed in their duties to coordinate the reduction of greenhouse gas emissions, and we are facing a climate catastrophe that will kill billions of people. We hoped a collective action on a global scale would save us, and it isn’t, at least not right now, and not soon enough. Yet, strikingly, the much-criticised free market has produced a photovoltaic solar panel and battery at a price that is lower than most other available energy sources. We are literally watching with our own eyes the deployment of ‘capitalist’ Chinese technology that will reduce emissions more than any Government policy, and all that was needed was a profit motive. Energy is costly, and markets seek the lowest cost. New Zealand’s Emissions Trading Scheme is tilting solar panels to the cheapest solution, and we will watch an unprecedented change in energy production in our lifetimes. New ‘green’ technologies are literally the salvation of our people to this catastrophe, and we didn’t even need to coordinate; the distributed decision making power of prices effectively did the job that policy or community couldn’t.
When we avoid the severest harm of climate change because of solar power, will Knight’s ghost mock the future humans for consuming more efficiently, will she think they are “blinded by the prospect that yet more consumption will fix things”?
To fully refute this simple and damaging sentence, I’d need several essays and a hundred scholarly sources, so I will leave it there for the reading public, but know that not everything you read in a book is true, even when written by an academic.
Yet we must continue onwards, as Knight is not finished misunderstanding economics.
This next point I brought up in the initial post, that Ostrom did not defeat Hardin’s Tragedy, she instead showed alternative methods of management could be just as successful as privatisation. Knight is insistent: “[Hardin’s] argument was that a system of commons, rather than private property, leads to every person over-exploiting the share resource through self interest – a contention that has since been convincingly debunked by the research of Nobel prize-winning economist Elinor Ostrom, among others.”. To be clear, Hardin argued the tragedy is that unmanaged commons are exploited through individual self-interest and neglect of collective interests, which must therefore be managed. Ostrom agreed, but added to the tools available for management. Neither of them, Hardin or Ostrom, suggested in particular the privatisation favoured by Governments in the distant past. Hardin suggested six different management strategies, one of which was privatisation, the other 5 were versions of nationalisation (to make the resource owned and managed by the State). This was Hardin’s point that Ostrom ‘debunked’; that the State is not necessarily required to manage the common resource successfully.
My criticisms echoing from the future clearly unheeded, Knight continues by rephrasing Hardin’s original quote to become “Freedom [to exploit Earth’s infinite resources without limit] brings ruin to all” (Knight’s punctuation). Based on her insistence that private property is ethically wrong, I’d further truncate her message down to “Freedom brings ruin to all.”
To bring home her point, Knight asserts “we have treated Earth’s limited resources much like private property – to be exploited without limit…” and therefore the ‘Real Tragedy of the Commons’ is actually… private goods? The resource that, when their rights are enforced, bring the controller of the resource in line with the consequences of their misuse, and therefore directly incentivise them to manage the resource in a sustainable manner? Climate emissions are very specifically not private pollution; if we lived in a world where my own greenhouse gas emissions harmed only me and no-one else, then I’d have a drastically smaller carbon footprint overnight. The fact is that my emissions harm everyone relatively equally, yet my benefit of their emissions are mine and mine own. We are all individually incentivised to emit greenhouse gases for our own benefit, while disincentivised to manage the global emissions rate. Climate change is a global common, that Hardin and Ostrom would suggest needs a management strategy that brings all emitters together for a common good purpose. That has not happened, and prices are doing the job instead (as already discussed), causing the global management of climate change to be run solely through capitalism’s blind ability to coordinate self interest on a grand, planetary, scale.
Overall, I like the book, but those few pages near the end reminded me that economics is a discipline of academia that is difficult for others to grapple with. Hopefully this gives some insight on what bad faith (or no faith) arguments in economics looks like.









You must be logged in to post a comment.