top of page

Resource Scarcity: How Capitalism Has Depleted Earth’s Riches


Resource Scarcity: How Capitalism Has Depleted Earth’s Riches
The depletion of natural resources due to profit-driven capitalism has been a growing concern for decades. The exploitation of natural resources such as oil, gas, coal, and minerals has led to environmental degradation, pollution, and climate change. This article explores the impact of capitalism on the environment and economy and highlights the consequences of resource scarcity on future economic development.


Depletion of Natural Resources Due to Profit-driven Capitalism


Capitalism has led to the depletion of natural resources worldwide. Companies have exploited these resources for profit without considering their long-term impact on the environment. For example, oil companies have drilled in ecologically sensitive areas, leading to oil spills and environmental disasters. Mining companies have extracted minerals from the earth without considering the impact on local communities and ecosystems.

According to a report by The Guardian, economics has failed to take account of the rapid depletion of the natural world. The report urges governments worldwide to come up with a different form of national accounting from GDP and use one that incorporates the depletion of natural resources. The review said that two UN conferences this year – on biodiversity and climate change – provided opportunities for the international community to rethink an approach that has seen a 40% plunge in the stocks of natural capital per head between 1992 and 2014.


Consequences of Resource Scarcity on Future Economic Development


Resource Scarcity

According to a report by Boston Consulting Group, the demand for sustainability-related resources will soon outstrip the supply in certain sectors. The report urges governments worldwide to come up with a different form of national accounting from GDP and use one that incorporates the depletion of natural resources. The review said that two UN conferences this year – on biodiversity and climate change – provided opportunities for the international community to rethink an approach that has seen a 40% plunge in the stocks of natural capital per head between 1992 and 2014.


In addition, resource scarcity can lead to economic instability and affect future economic development. According to UNICEF , four billion people — almost two-thirds of the world’s population — experience severe water scarcity for at least one month each year. Over two billion people live in countries where water supply is inadequate. Half of the world’s population could be living in areas facing water scarcity by as early as 2025.


Social Capitalism: A New Direction for Sustainable Business


Social capitalism is a new direction for sustainable business that balances environmental sustainability, social responsibility, and profits. It explicitly values all forms of capital, including social capital, human capital, and natural capital. Instead of maximizing profit for the 1%, it involves profit maximization for all of society.

Social capitalism can help address resource scarcity by promoting sustainable business practices that consider the long-term impact on the environment. Companies that adopt social capitalism principles can reduce their carbon footprint, minimize waste, and promote social responsibility.

Examples of companies that have adopted social capitalism principles include Patagonia 3, which has committed to using only organic cotton in its products by 2025. The company also donates 1% of its sales to environmental causes. Another example is Ben & Jerry’s , which has committed to sourcing only Fairtrade-certified ingredients in its products.


The Vision of Social Capitalism


Social Capitalism offers an alternative path forward. Rooted in the principles of balancing profit with social and environmental responsibility, it seeks to create a more equitable and sustainable economic system. In a Social Capitalist framework, businesses consider not only their financial bottom line but also their impact on society and the planet.


This approach encourages businesses to adopt sustainable practices, invest in renewable energy, reduce waste, and embrace circular economies. It promotes fair labor practices, respects human rights, and supports communities. Social Capitalism envisions a world where businesses are a force for good, working collaboratively towards shared goals.


Eud Foundation: Pioneering Social Capitalism


Eud Foundation: Pioneering Social Capitalism


Eud Foundation stands as one of the pioneering communities for Social Capitalism. With a global network of over 500,000 members, we are at the forefront of this transformative movement. Our community fosters collaboration, provides capital, shares expertise, and connects businesses to create a sustainable and prosperous world.


Join the Movement


The depletion of Earth's wealth due to profit-oriented capitalism is a stark reality we must confront. The consequences of this depletion are already affecting economies, ecosystems, and societies. Social Capitalism offers a way forward, one that harmonizes economic success with social and environmental responsibility.


Join Eud Foundation today and be part of the Social Capitalism movement. Together, we can build a more sustainable and equitable world. To learn more about Social Capitalism, visit the Eud Foundation community.





Comments


bottom of page