Marx's Theory of Crisis and the Limits of Fossil Fueled-accumulation

• In Event: 3566 - Capitalism and Its Crises: Economic, Political, Ecological

Abstract

Today, advanced capitalist states are engaged in the chaotic management of a multifaceted crisis, while also trying to boost endless capital accumulation. Since contemporary capitalism is deeply tied to oil, coal and gas, a new boom necessarily requires an expansion of fossil fuel extraction in the short- to medium-run. Can capitalists create this fossil fueled boom, while effectively addressing (or effectively denying the existence of) the ongoing climate crisis? The answer: they cannot. In this context, Marxist theory is tasked with unmasking the deep link between the global accumulation crisis, fossil fueled-growth and climate change. Accordingly, I draw on Marx’s theory of crisis to explain the dimensions of the current conjuncture, uniting the economic and environmental aspects of the crisis. Looking at the contradiction between oil-fueled growth and global warming, I argue that what we are witnessing is the emergence of a multiple structural squeeze on global accumulation, and a capitalist response that puts global society in danger. Specifically, I argue that both oil price volatility and global warming create insurmountable problems for the capitalist class. One type of crisis is created by too expensive fossil fuels, since high energy costs contribute to profitability crises (as in 1973–1974 or in 2008–2009). On the other side, however, a different and more intractable crisis-tendency is created by the endless burning of fossil fuels: climate change and its disastrous effects. Following Marx's theory of profitability crisis, I explain that in order to avoid profitability crisis caused by expensive inputs such as high priced oil, capitalist states and corporations effectively ignore global warming. Moreover, capitalist “solutions” to climate change put in danger human well-being. The scope of the problem requires a rationally planned and ecologically minded system, something which capitalism cannot deliver.

Author

• Roberto Jose Ortiz Ortiz, State University of New York-Binghamton