German journalist Ulrike Herrmann provides a definitive account of the unsustainability of capitalism in our emerging climate crisis. She argues that capitalism will end: this end can be on account of our choice, or the result of an economic breakdown caused by climate emergency. Knowing this, she makes the case that we must choose to shift to a more sustainable, circular economic model to reduce climate change and ultimately save our planet.
Herrmann does not argue that capitalism is bad – in fact, she explains many positives that capitalism has brought us: longer life expectancy, modern medicine, food surpluses. She even refutes many common criticisms of capitalism before delivering the fatal blow herself: the infinite growth required by capitalism is impossible on a finite planet. Capitalism requires an ever–increasing use of fossil fuels, which are plentiful and cheap, but release the greenhouse gases that cause climate change. Our only alternative to fossil fuels are green energy sources, which are more expensive and scarce. Methodologically proving that green energy is incompatible with economic growth, Herrmann describes the inevitability of what she calls ‘green shrinkage’ – that our economy will shrink from relying on green energy. The use of green energy is a necessity that is irreconcilable with capitalism. We need to find another economic model.
She describes a utopian model, in which we live greener, healthier lives, consume less but do more, a circular economy in which resources are shared and the planet is saved. However, Herrmann is not an idealist – she knows that this future cannot rise from the ashes of capitalism. We need a transition, immediately implementable, in which jobs will be reallocated, no one will go hungry, and there will be no violent revolution. Here she suggests the British wartime economy model, a survival economy that requires sacrifice but supports the people and the changing industries.
Combining historical, cultural, scientific and economic analysis with a hopeful yet realistic model, Herrmann paves our way out of the climate crisis, and into a new beginning.
