Schumpeter, Marx, Keynes: Economic Views on Environment

The study of comparative economic thought has always been crucial to understanding various approaches to economics and their significance on society. This paper explores the views of three prominent economists, “Joseph Schumpeter, Karl Marx, and John Maynard Keynes,” on the global environmental crisis. These three thinkers have contributed significantly to the economic field and permanently impacted the world. Through a critical breakdown of their respective work, the paper will discuss what each of these thinkers would have to say regarding the contemporary issue of environmental crisis. The essay provides a deeper understanding of concepts of theories developed by these thinkers and shows how they are different from one another in their approach to this critical issue. Furthermore, the paper will also discuss actions or policy changes each of these thinkers might suggest in addressing, the issue of global environmental crisis or climate change. 

Joseph Schumpeter believed in capitalism as the instrument of growth and advancement. He argued that capitalism was a process of creative destruction, where new goods, production processes and transportation, markets, and systems of business organization were constantly created (Schumpeter, 2010, p. 72-73). According to Schumpeter, the ultimate desire that drives capitalism is producing consumer goods, which pushes the economy forward and makes it more efficient. In his view, capitalism is a dynamic system that is constantly changing, and this is what makes it so effective. 

When applied to the contemporary global environmental crisis issue, Schumpeter would argue that capitalism is the best system for addressing the environmental crisis because it can generate the innovation and investment required to solve the problem. He might say that the market will drive the development of new technologies and practices that are environmentally sustainable and that this process of creative destruction will lead to a more efficient and sustainable economy. However, Schumpeter would also view the global environmental crisis as challenging economic growth (Birch et al., 2017, p. 140). It would need massive investment in alternative energy and technology and changes in consumer behavior. 

On the other hand, Karl Marx saw capitalism as an unjust and irrational exploitation system. He believed that the basis of profit in capitalism was surplus value, generated by labor being less waged than the value of the goods they produced (Przeworski, 1985, p.206). Marx also argued that the private ownership of means of production was the source of injustice and irrationality of capitalism because it meant that the laborers were disconnected from the means of production and had to sell their labor power to survive (Marx 1977, p. 484). He saw the falling rate of profit as the source of economic crises, and he believed that the final solution to these concerns was eradicating capitalism and creating a socialist system (McNally, 2010, p. 115). 

In addressing the environmental crisis, Karl Marx would likely argue that this issue is a symptom of capitalism's inherent injustices and irrationality. He would probably say that the hunt for profit is the root cause of overproduction, waste, and also environmental degradation and that the only solution to this challenge is to abolish capitalism and replace it with a communist approach that encourages common possession of the means of production (Birch et al., 2017, p. 137). He would also have suggested that the working class and the poor are highly impacted by the environmental crisis, as they reside in most affected areas by pollution and ecological degradation. In Marx's view, the environment would be protected as a public good instead of using it as a source of profits for capitalist groups. 

John Maynard Keynes was a crucial figure in the establishment of modern macroeconomics. He saw the economy as a dynamic system that was subject to changes and volatility. He believed that the government had a significant role in ensuring economic stability and minimizing the severity of economic recessions (Przeworski, 1985, 207). According to Keynes, the combination of democracy and capitalism created a compromise, where those who did not own production means conformed to the political institutions that allowed other individuals to press their claims for the allocation of resources and distribution of output. He believed that the government should control the aggregate amount of resources devoted to enhancing the tools of production and determine the primary reward for owners (Przeworski, 1985, p. 207). 

Regarding the contemporary issue of environmental crisis, John Maynard Keynes would argue that the government has a role to play in addressing the environmental problem. He would suggest that the state should intervene in the economy to promote investment in environmentally sustainable technologies and practices and to create incentives for businesses to adopt a more sustainable production process. He might also claim that the government should use its authority to control the market and prevent harmful environmental practices. Additionally, Keynes would have suggested that government investment in green technology and infrastructure would establish new jobs and fuel the economy. In conclusion, Schumpeter, Marx, and Keynes were three of the greatest and prominent economic philosophers of the 20th century. They each had unique perspectives on the economy, and these perspectives can be applied to contemporary issues such as the global environmental crisis. They would have had different views on the global environmental crisis, but all would have recognized it as an essential issue for the future of the global economy. 

References

Birch, K., Peacock, M., Wellen, R., Hossein, C., Scott, S., and Salazar, A. (2017).Business and society: A critical introduction: Zed Books. London.

Marx, K. (1977). McLellan, D (Ed.) Karl Marx: Selected Readings. Oxford University Press. McNally, D. (2010). Global Slump: The Economics and Politics of Crisis and Resistance. Fernwood Press. 

Przeworski, A. (1985). Capitalism and Social Democracy. Cambridge University Press.

Schumpeter, J.A. (2010). Capitalism, Socialism and Democracy (1st ed.). London: Routledge