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COP Talks are a Waste of Time Without Regulation of Markets
Regulation of markets could lead to transformative change
While governments squabbled into the late hours over emissions targets at COP26, the elephant in the room suffocating the delegates is that the problem is the economy, stupid.
The economy is the epicentre of society. Everything revolves around it, so how the global economy functions is one of, if not the central piece of the climate crisis jigsaw.
Free-market capitalism has now become the dominant means of organising an economy around the world. Properly regulated, markets offer a crucial leverage point that could see transformative changes happen remarkably quickly.
What’s going on? Why is there such resistance when the free market plays such a crucial role in determining our future destiny?
The resistance is due to the underlying ideas and beliefs surrounding how free markets should be organised.
A fundamental belief governing free market economies is the idea is that markets are self-regulating. The thing managing markets are prices and prices alone. And Prices are determined by the mechanism of supply and demand.
Market fundamentalists argue that when left to self regulate, free markets lead to efficient outcomes. What creates inefficiencies is meddling governments who seek to regulate or intervene in the market.
From the perspective of market fundamentalists, governments should exist to…
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