Resources scarcity will force changes to the economy

by Germanico Vaca

The trajectory of development of several nations has tried to fulfil ambitious objectives that lead to prosperity for all their citizens within the limits allowed by its geographical and political sphere. In the United States unfortunately is mostly for the benefit of corporations but the debt is been assumed by the citizens and due to the massive sale of US securities by the entire world because the Federal Reserve keeps printing money out of thin air with no intention to ever repay such debt that at this point can only be solved by bankruptcy.

Undoubtedly other nations can’t print out of thin air, yet their currencies are devalued by the US dollar. It is madness, literally, the omnipotent counterfeiter devalues the currencies of all nations who must live within the parameters that their economic output allows. While in the USA deficit and debt are unchecked and credit is set by the Federal Reserve who dictates economic policies of the United States. National strategies for economic development and growth must, therefore, ensure that the creation of financial and human capital does not emphasize in the interest of bankers, corporations, the industrial complex and our natural capital; rather, you must regenerate it.

A national policy framework that guides the sustainable management of our natural resources and ecosystem services is fundamental to securing the future of the United States. There should be a clear plan for what must be the "National Resource Efficiency Policy" for the United States. A globalized strategy based on all resources, including human resources.

The United States must create an economic court or board with the capacity to formulate economic strategies independently of politics and of the Federal Reserve. In short, US policy is currently being directed by the Federal Reserve who apply measures, rules and economic measures based strictly on "statistics and economic assumptions" that are not necessarily independent of the interests of world bankers. Thus, the president of the nation will be conferred the “political authority” of the nation and not the economic authority that must be permanent and composed of the best economists of the nation.

It is a necessary first step in this direction. For centuries, our development and economic prosperity have depended on extremely politicized governments, corrupt and manipulated Congress and Senate that serves the interest of the corporations or the world oligarchy and a number of external forces. Sadly, the increase in the production of goods and services and the management of resources has been in the hands of corporate entities. This has led to a negotiation of the increasing consumption of natural resources, leading to their exhaustion. Likewise, corporations have taken advantage of loopholes in the tax code to create offshore enterprises to avoid paying any taxes. In reality, they have avoided contributing to the nation while they have contributed to the theft of resources by multinationals which have only brought the theft of those resources into the hands of their executives who pay off politicians of the day to pass laws for their benefit.

But unfortunately, there is global exhaustion of over-exploitation of resources. The result is a serious threat to nature's ability to relinquish, much less regenerate, the resources we need. In addition, the rapid exploitation of resources is the main cause of the acceleration of climate change, the loss of biodiversity and desertification, not to mention the clouds of toxic pollution and the mountains of non-processable waste that we produce.

Today, we all depend more than ever on natural resources. Access to land and fresh water is as crucial for the small farmer, for drinking and for irrigation, as it is for the daily needs of his compatriot in a distant city. Industrialists need an uninterrupted supply of metal alloys to make engineering products; and citizens need energy resources for electrification, lighting, mobility and many other requirements of modern life.

Worldwide, the use of resources in the last century has grown faster than the economy; and the economy grows faster than the population. By 2050, we can expect to have around four billion middle-class consumers, most of them urban dwellers who generate a high demand for resources and generate large amounts of waste and pollution. While technological improvements in the extraction, processing and transport of natural resources ensured low commercial prices during most of the past century, the stocks of free resources provided by nature were used more intensively, but it is no longer possible the excessive use of the endowment of nature.

During the last decade, the prices of marketed resources have begun to rise, as more and more resources appear to be scarce. The scarcity of fishing areas has led China to invade maritime territories of Costa Rica, Ecuador, Peru and Chile. It is estimated that 60% of the world's fisheries are in a state of collapse.

Nations that have based their economies on the exploitation of resources such as China, India and the United States are beginning to suffer shortages of widely used materials, such as cement and sand, both crucial for the manufacture of construction materials, are no longer available in many markets. In addition, the extraction, processing, transport and use of these resources consume a lot of energy and are an important contributor to carbon emissions and climate change. Clearly, in the domain of resources, we must now learn to do more with less.

This means increasing the efficiency of our production systems, following the essential Rs (reuse, repair, recycle, restore, remanufacture, etc.) and implement the lessons of the circular economy. Today, less than 1% of the special metals that make up our mobile phones, computers, screens, televisions and solar devices are recycled.

All over the world, landfills, rivers and even oceans are growing with discarded materials and food waste that, through better management, could have improved lives and livelihoods. Much of the knowledge and technology to make substantial improvements in resource utilization and productivity already exists. It is estimated that using the technologies currently available, this sector could contribute several trillion dollars to the global economy.

Technological innovation is, of course, important; The change in behaviour among consumers and the main productive sectors is even more crucial. But all these changes need supportive policy environments. A plan for a "National Policy on Resource Efficiency" is paramount so that the United States can face the challenges of the future. Within this plan, projects must be created that lead to the development and technical progress of the nation.

The objective should be established to address key aspects of the dissociation between economic development and environmental impact and resource stress. The new measures require a full evaluation of all proposals to improve efficiency, to ensure that their social and environmental impacts are also the positive net. In addition, the policy should focus on critical resources and essential sectors to maintain the security of resources, strengthen the United States competitiveness and guarantee basic needs and economic opportunities for current and future generations. The contributions to it, during the next phase of elections, should lead it to formalize systemic approaches such as the adoption of circular economy practices, the promotion of consumption patterns and sustainable production systems and support for innovation in technology, economic instruments and financing mechanisms.