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  • Why the Dutch Farmer Protest Is Your Cause, Too

    It was a standoff in the province of Friesland in the Netherlands on the evening of July 5. Police fired gunshots at a band of farmers who were reportedly driving tractors into officers and their vehicles to get past a blockade and onto the highway.

    A tractor was hit by the gunfire, and three arrests were made. This was just one heated event among countless during a campaign of tens of thousands of protesters that has now become an international showdown between farmers and environmental regulators with global and potentially historic implications.

    The Dutch farmer protests started with an initial bout of demonstrations in the Netherlands on October 1, 2019 in response to new carbon emissions reduction legislation that disproportionately impacted farmers.

    Then, on June 10 of this year, the Dutch government unveiled more extreme measures targeted directly at the agricultural industry. “Farms next to nature reserves must cut nitrogen output by 70%,” the Economist reported. “About 30% of the country’s cows and pigs will have to go, along with a big share of cattle and dairy farms.”

    In response to this new legislation, about 40,000 Dutch farmers protested outside government buildings and the homes of ministers and drove hundreds of tractors to blockade food distribution centers including warehouses and grocery stores. Throughout July the movement spread to Germany, Italy, Spain, Poland, and other nations, each with farmers taking to the streets in repudiation of their governments’ measures to reduce the scale and output of the agricultural industry.

    So what exactly is each side of this dispute fighting for?

    The Netherlands, being the world’s second largest exporter of agricultural goods after the United States, is among Earth’s most productive farming centers but is also therefore one of the largest polluters.

    “The Netherlands has become an agricultural giant by showing what the future of farming could look like,” according to a National Geographic article titled “This Tiny Country Feeds the World.” But as the Economist reports, “The Netherlands is the biggest nitrogen polluter in the EU.”

    The farm animals that will likely soon be regulated out of existence produce manure which mixes with urine and releases the nitrogen compound ammonia. This can harm wildlife and disrupt sensitive ecosystems when it leaks into nearby rivers and lakes.

    But there are simply no other known methods of producing such bountiful agricultural output with the resources available to the Dutch farmers. So this is a tradeoff between protecting sensitive ecosystems on the one hand, and on the other hand maintaining a thriving Dutch agricultural industry that is able to support its workers while providing the market with maximally affordable products.

    “We have to move away from the low-cost model of food production,” said MP Tjeerd de Groot of the Democrats 66 party, which is part of the Dutch coalition government. “It’s time to restore nature, climate and air, and in some areas that may mean there is no more place for intensive farmers there.”

    And according to DutchNews.nl, “Dutch agriculture has to become a lot less efficient or the environment will suffer even more, say agro-environmental scientists.”

    If this regulatory crackdown on Dutch farmers were an isolated and unusual event, the effects on food availability, food prices, and farmer wages would be bad enough (see the next section). But given the political circumstances currently faced by farmers and those in other industries that are being heavily blamed for environmental destruction, a 30 percent reduction in cows and pigs is likely to be just the beginning.

    The deliberate move away from efficient and low-cost farming is in line with a broader global initiative to minimize and reorganize most industrial activity. And that initiative is known as ESG.

    As Dan Sanchez has delineated, “environmental, social and corporate governance” (ESG) policies have been around in their codified form since 2004 when top financial institutions were tasked by the United Nations with developing guidelines for reforming the financial sector through “environmental, social and corporate governance.” The evident goal was to skew the global economy’s capital investment toward firms willing to fall in line with the environmental and social values of the powers that be.

    Since its invention in 2004, and especially in just the last few years, ESG has become a mainstream form of increasingly-state-backed governance that has thoroughly realigned incentives throughout the economy. In December 2021, Reuters named 2021 “the year of ESG investing,” and by April 2022, Bloomberg reported that, “Few corners of the financial universe have been surrounded by as much marketing froth as ESG, which by some estimates represents more than $40 trillion in assets.”

    ESG funds by definition prioritize the moral values of their controllers rather than focusing purely on profitability. And many of those political aims, such as race and sex quotas on corporate boards and the mass curtailing of the energy industry, are at odds with maximizing production and minimizing costs for investors, workers, and customers alike. This might explain why ESG funds are underperforming badly.

    And such will be the fate of the Dutch farming industry as investors and entrepreneurs incorporate the fact that efficient industrial agriculture has fallen out of favor among those who wield the powers of political reward and punishment. “For my son, where can he find a living and know what will be allowed in 10 years?” asked Erik Stegink, a protesting pig farmer in the Dutch village of Bathmen.

    Such drastic hampering of Holland’s farming industry, both directly and indirectly through the hampering of connected industries such as energy, will put thousands of farmers out of work, reduce food availability, and increase food prices internationally at a time when food insecurity is on the rise.

    According to a statement that the White House released in June, “Many of our neighbors rely significantly on imports for food and are particularly vulnerable to rising food costs. The [Western Hemisphere] is experiencing the highest spike in food prices in a generation.”

    The publication specifies that between 2014 and 2019 the number of people facing severe food insecurity nearly doubled to more than 90 million in Latin America and the Caribbean. About a third of Venezuelians are food-insecure, while 50 percent of their children under five are showing signs of malnutrition. The number of people facing food insecurity in Honduras nearly doubled last year.

    The ongoing food crisis in Sri Lanka is a particularly gruesome display of just how tragic the results of heavy farming regulation can be. About 90 percent of Sri Lankan families are skipping meals due to widespread food shortages and food price inflation of roughly 60 percent.

    “It’s a scary turnaround for a middle-income country that once faced no problems feeding a population of 22 million people,” Bloomberg reports. And why did it happen? There are many reasons, but as Bloomberg explains, a major one is that, “In April 2021, the government, led by President Gotabaya Rajapaksa, banned synthetic fertilizer imports to push the country toward organic farming.”

    The Dutch economy and most Dutch farmers have deep enough coffers that they probably won’t suffer (for now) from the drastic food insecurity that many poorer countries are experiencing. They will have the luxury of cutting back their quality of life and their children’s futures in other ways instead, as will most of the Americans whose grocery store prices will rise as a result of the Dutch agricultural exports becoming scarcer. But manufactured scarcity and price increases will likely mean immediate starvation for many at the margins in places like Sri Lanka and Latin America.

    As some of the farmers have pointed out, there is a case to be made that advancing agricultural progress rather than obstructing it would ultimately have better environmental impacts, not worse. This is because innovation rather than impact reduction has often proven the clearest path to sustainability. And innovation requires that there is capital to invest in new processes and experimentation.

    “Cars were very polluting but they had a chance to make cars less polluting with innovation. That is what we want,” Dutch farmers party founder MP Caroline van der Plas explained. And improvements to automobile sustainability are exemplary of the rule, not the exception.

    The history of industrial wealth creation and its environmental impacts shows consistently that new wealth tends to improve people’s ability to adapt to a changing environment at least as much as the corresponding environmental changes are problematic for human welfare. The economic datasets known as the Kuznets curves suggest that, at least in modern times, starving people who are focused on the short-term concerns of surviving another month actually tend to damage their environment more than relatively wealthy people who can afford to invest in their long-term wellbeing.

    So how is one to decide whether agricultural progress is worth its cost in ecological disruption? The answer becomes clearer when you take the two opposing goals to their logical conclusions.

    Agriculture will always disrupt ecosystems and cause pollution, but if it is allowed to flourish it can also make up for that by continuing to improve through innovation as it already has been for centuries, and by making humankind wealthy enough to endure an ever-expanding range of potential environmental conditions, which will eventually be necessary anyway.

    By contrast, there is no good ending to the story of limiting and reducing the ability of the farming industry, possibly humans’ most important industry, to produce food. The less food civilization has, the less possible it will be to adapt to changing climate conditions. And since agriculture will always affect its environment, the goal of minimizing the environmental impact of agriculture and other industrial activities is one that will never be complete until everyone starves.

    Ecological change is a constant of biological reality—but humans remaining well fed is certainly not. And that hasn’t changed in modern times, as is demonstrated by the 20th century history of mass starvations caused by central planning in places like China, Cambodia, and the Soviet Union.

    The Nobel Prize winning economist Friedrich Hayek once wrote that, “The more the state ‘plans’ the more difficult planning becomes for the individual.” Dutch statists preventing farmers from growing food is a good example of this. It will make planning their budgets, careers, and livelihoods more difficult for the farmers who are being regulated, but it will likely make such planning more difficult for individuals all over the world as well.


    Saul Zimet

    Saul Zimet was a Hazlitt Fellow at the Foundation for Economic Education and a graduate student in economics at the John Jay College of Criminal Justice at the City University of New York

    This article was originally published on FEE.org. Read the original article.


  • Sri Lanka’s Food Crisis Reveals the Dangers of Environmental Planning – Foundation for Economic Education

    On July 14, after months of economic and social unrest, Sri Lanka’s President Gotabaya Rajapaksa resigned in disgrace and fled to Singapore, leaving in his wake an economic crisis and a food shortage.

    How Rajapaksa’s fate was sealed is not complicated.

    You probably heard that Sri Lanka adopted an all-organic approach to agriculture, banning the import of regular fertilizer and fuel because activists assured the government that organic farming was the future. As a result, in merely one year Sri Lanka went from an exporter of rice to an importer. Sri Lanka was not a wealthy country to begin with, and the organic experiment—combined with Covid-19 and government lockdowns—plunged about half a million people into poverty and caused prices to surge. (Inflation is running well over 50 percent, the BBC notes.)

    It is a classic example where a supposedly “green” policy was implemented with a lot of fanfare, achieved very little, and created a lot of suffering.

    Moreover, such environmental overzealousness is not limited to countries like Sri Lanka. Rich countries have their share of poorly-thought-through “sustainable” initiatives that create a lot of misery and achieve little good. It’s just that rich countries have capital (or license to print dollars and euros) to hide the effects of bad policies.

    Consider the current issue of high energy prices. Sure, there are some unexpected factors, like Russia’s invasion of Ukraine. However, expensive energy is largely a product of bad policies across the world.

    In the last decade, oil and gas production in the US increased significantly, in large part due to innovation, particularly hydraulic fracturing (“fracking”). This growth could have continued, lowering fuel prices at home and selling the excess oil and gas to Europe or other countries. However, green-minded policymakers have canceled or stalled a number of investment projects, such as the Keystone XL Pipeline, the Atlantic Coast Pipeline, and others.

    In addition, there are signs that the oil and gas industry is reluctant to invest a lot of money into new projects. It could be that the industry fears even more zealous policies against fossil fuels in the future. After all, would you want to invest in this sector when the government promises to eliminate fossil fuel use altogether?

    Most importantly, obstacles to oil and gas exploration in the US does little to reduce consumption of fossil fuels in the US or globally – oil and gas are merely acquired in other places, sometimes with much worse environmental records, e.g. Venezuela.

    Moving over to Europe, Germany is another country where unreasonable energy policies are wreaking havoc. Sure, the cuts in Russian supplied gas is the most visible issue, since Germany is very dependent on Russian gas. But this is in part due to German policies, which actively aimed to eliminate coal production and reduce coal consumption in favor of imported natural gas.

    At least changing from coal to natural has some sense in terms of climate change: in general coal has more CO2 emissions than natural gas. Although one could wonder whether relatively cleaner fuel is the right price for somewhat reduced CO2 emissions in exchange for dependence on natural gas supplied by Russia.

    However there is little practical justification for the German approach to nuclear power. German politicians chose to close working nuclear power plants (the last ones will shut down in 2022). Moreover, in truly zealous fashion, some politicians are against allowing German nuclear plants to come back online even as the country faces a true energy emergency. They prefer imposing energy rationing to industries or telling people to turn the thermostat a couple degrees down.

    Climate change politics could explain the resistance to coal, but not the opposition to nuclear. This latter is likely a combination of the legacy of the Green movement’s hostility to nuclear power, which goes back to the 1970s (long before climate change battles), and general distaste for development and industry.

    If you think the policies that impede development are only limited to fossil fuels and nuclear— just you wait. Resistance to renewable energy is beginning to rear its head too. Some of the opposition to renewable energy is legitimate, e.g. not all electricity produced on a windy day can be accommodated by an electric grid without major investment. Some rests on the “I-don’t-like-the-way-it-looks” sentiment, which some describe as “visual pollution.”

    All these cases are politician-produced disasters that impede man-made progress. Synthetic fertilizer made Sri-Lanka self-sufficient in food, but the government banned it. Indigenous energy sources could heat German homes, but politicians prohibited them. American oil and gas could make fuel affordable and power the free-world, but politicians on the fringe impede their development.

    The Nobel Prize-winning economist F.A. Hayek once said “The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.”

    This is demonstrably true and a warning to overconfident politicians, aspiring social engineers, and green zealots. If they don’t trust logic and famous dead economists, they should at least learn from experience—blatant mistakes carried out right now for all the world to see.

    Banning synthetic fertilizer will result in less food. Impeding oil production will cause higher fuel prices. Shutting down power plants will cause blackouts. All of this is logical, obvious, and inevitable. It’s just that the effects of these policies take longer to manifest in rich countries. In poor countries, like Sri-Lanka, the effects of bad policies are tragically visible almost instantly.

    This Epoch Times article was republished with permission.


    Zilvinas Silenas

    Zilvinas Silenas became President of the Foundation for Economic Education (FEE) in May 2019. He served from 2011-2019 as the President of the Lithuanian Free Market Institute (LFMI), bringing the organization and its free-market policy reform message to the forefront of Lithuanian public discourse.

    This article was originally published on FEE.org. Read the original article.


  • How America’s Recycling Program Failed—and Scarred the Environment

    In March 2019, The New York Times ran a shocking story exploring why many prominent US cities were abandoning their recycling programs.

    “Philadelphia is now burning about half of its 1.5 million residents’ recycling material in an incinerator that converts waste to energy,” Times business writer Michael Corkery reported. “In Memphis, the international airport still has recycling bins around the terminals, but every collected can, bottle and newspaper is sent to a landfill.”

    Philadelphia and Memphis were not outliers. They, along with Deltona, Florida, which had suspended its recycling program the previous month, were just a few examples of hundreds of cities across the country that had scrapped recycling programs or scaled back operations.

    Since that time, cities across the country have continued to scrap recycling programs, citing high costs.

    “The cost of recycling was going to double, and the town wasn’t going to be able to absorb that cost,” said Dencia Raish, the town clerk administrator for Akron, Colorado, which ended its program in 2021 and now sends “recyclables” to a landfill.

    While many Americans likely are distraught about America’s failed recycling experiment, a new video produced by Kite & Key Media reveals that abandoning recycling—at least in its current form—is likely to benefit both Americans and the environment.

    Like many problems in American history, recycling began as a moral panic.

    The frenzy began in the spring of 1987 when a massive barge carrying more than 3,000 tons of garbage—the Mobro 4000—was turned away from a North Carolina port because rumor had it the barge was carrying toxic waste. (It wasn’t.)

    “Thus began one of the biggest garbage sagas in modern history,” Vice News reported in a feature published a quarter-century later, “a picaresque journey of a small boat overflowing with stuff no one wanted, a flotilla of waste, a trashier version of the Flying Dutchman, that ghost ship doomed to never make port.”

    The Mobro was simply seeking a landfill to dumb the garbage, but everywhere the barge went it was turned away. After North Carolina, the captain tried Louisiana. Nope. Then the Mobro tried Belize, then Mexico, then the Bahamas. No dice.

    “The Mobro ended up spending six months at sea trying to find a place that would take its trash,” Kite & Key Media notes.

    America became obsessed with the story. In 1987 there was no Netflix, smartphones, or Twitter, so apparently everyone just decided to watch this barge carrying tons of trash for entertainment. The Mobro became, in the words of Vice, “the most watched load of garbage in the memory of man.”

    The Mobro also became perhaps the most consequential load of garbage in history.

    “The Mobro had two big and related effects,” Kite & Key Media explains. “First, the media reporting around it convinced Americans that we were running out of landfill space to dispose of our trash. Second, it convinced them the solution was recycling.”

    Neither claim, however, was true.

    The idea that the US was running out of landfill space is a myth. The urban legend likely stems from the consolidation of landfills in the 1980s, which saw many waste depots retired because they were small and inefficient, not because of a national shortage. In fact, researchers estimate that if you take just the land the US uses for grazing in the Great Plains region, and use one-tenth of one percent of it, you’d have enough space for America’s garbage for the next thousand years. (This is not to say that regional problems do not exist, Slate points out..

    Mandated recycling efforts, meanwhile, have proven fraught.

    During moral panics, it’s not uncommon for lawmakers to get involved. Recycling was no exception.

    Within just a handful of years of the Mobro panic, a recycling revolution spread across the continent. In a single year, more than 140 recycling laws were enacted in 38 states—in most cases mandating recycling and/or requiring citizens to pay for it. Within just a few years 6,000 curbside programs serving some 70 million Americans were created.

    Some people saw problems early on in this approach.

    “The fact is that sometimes recycling makes sense and sometimes it doesn’t. In the legislative rush to pass recycling mandates, state and local governments should pause to consider the science and the economics of every proposition,” economist Lawrence Reed wrote in 1995. “Often, bad ideas are worse than none at all and can produce lasting damage if they are enshrined in law. Simply demanding that something be recycled can be disruptive of markets and it does not guarantee that recycling that makes either economic or environmental sense will even occur.”

    The reality is recycling is incredibly complicated—something Discover magazine pointed out more than a decade ago. While it makes sense to recycle some products, there’s also circumstances where recycling makes no sense at all.

    Take plastic. For various reasons, plastic is not conducive to recycling. A Columbia University study published in 2010 found that a mere 16.5 percent of plastic collected by New York’s Department of Sanitation was actually “recyclable.” That might not sound like much, but it’s actually much higher than the percentage of plastic that is recycled globally, according to other studies.

    Physics has a lot to do with this. In most cases, it’s less expensive to simply make new plastic than to recycle old plastic. But the costs of recycling are not just economic.

    Proponents of recycling often acknowledge its economic costs. These costs can run high and recently got even higher (more on that later), but they say those costs are necessary to protect the environment.

    The argument ignores, however, that recycling—especially recycling done badly—also comes with severe environmental costs. It doesn’t just take dollars to recycle plastic but also energy and water (think about how much water you spend rinsing your recyclables for a moment).

    For plastic in particular, the environmental costs are even more staggering than the economic costs.

    “The newest, high tech methods of recycling [plastic] generate carbon emission 55 times higher than just putting it into a landfill,” Kite & Key Media says.

    But greenhouse gas emissions aren’t the only environmental cost. Did you ever wonder how we got a patch of plastic in the ocean that is twice the size of Texas?

    The Great Pacific garbage patch is a mass of debris in the Pacific Ocean that weighs about 3 million tons. How it got there is not exactly a mystery. It’s a collection of trash that came from countries in Asia, South America, and North America that researchers believe has increased “10-fold each decade” since the conclusion of World War II.

    Americans who’ve spent the last few decades recycling might think their hands are clean. Alas, they are not. As the Sierra Club noted in 2019, for decades Americans’ recycling bins have held “a dirty secret.”

    “Half the plastic and much of the paper you put into it did not go to your local recycling center. Instead, it was stuffed onto giant container ships and sold to China,” journalist Edward Humes wrote. “There, the dirty bales of mixed paper and plastic were processed under the laxest of environmental controls. Much of it was simply dumped, washing down rivers to feed the crisis of ocean plastic pollution.”

    It’s almost too hard to believe. We paid China to take our recycled trash. China used some and dumped the rest. All that washing, rinsing, and packaging of recyclables Americans were doing for decades—and much of it was simply being thrown into the water instead of into the ground.

    The gig was up in 2017 when China announced they were done taking the world’s garbage through its oddly-named program, Operation National Sword. This made recycling much more expensive, which is why hundreds of cities began to scrap and scale back operations.

    China’s decision provoked anger in the United States, but in reality the decision was a first (and necessary) step toward improving the environment and coming to grips with a failed paradigm.

    Americans meant well with their recycling efforts. We thought by recycling trash instead of burying it in a landfill, we were doing some good. Instead, tons of it (literally thousands and thousands of tons) was thrown into rivers and other waterways, contributing to the ocean plastic pollution problem.

    How did this happen?

    There are several answers to this question. NPR says Big Oil—always a convenient scapegoat—is to blame for letting people believe that recycling plastic made sense. But I think basic economics and moral philosophy are a better place to start.

    There was a reason Larry Reed, who today is president emeritus of FEE, sniffed out the false promise of recycling nearly 30 years ago.

    “Market economists—by nature, philosophy, and experience—are skeptical of schemes to supplant the free choices of consumers with the dictates of central planners,” Reed explained at the time.

    The idea that mountains of refuse can just be turned into something of value with the right local mandates never smelled right, largely because we have centuries of evidence that show markets are smarter than government bureaucrats because markets use infinitely more knowledge.

    This might sound simple, but the Nobel Prize winning economist Milton Friedman correctly observed it’s not.

    “The hardest thing in the world to understand is that people operating separately, through their joint relations with one another, through market transactions, can achieve a greater degree of efficiency and of output than can a single central planner,” Friedman noted in a 2001 interview.

    This is not to say recycling can never work. It can.

    Items like cardboard, paper, and metals (think aluminum) account for as much as 90 percent of greenhouse gas reduction from recycling, research shows, and they also make the most sense economically, since they are less expensive to recycle and offer more value.

    The problem isn’t recycling, but the means we use to recycle. The author Leonard Read, the founder of FEE, was fond of a Ralph Waldo Emerson poem that touched on ends and means.

    “Cause and effect, means and ends, seed and fruit, cannot be severed;” Emerson wrote, “for the effect already blooms in the cause, the end pre-exists in the means, the fruit in the seed.”

    What Emerson and Read understood was that noble ends are not enough. If the means we use to achieve a desired result are rotten, the fruit itself is likely to be rotten as well.

    The ends desired from recycling—a cleaner planet— were pure. The means we chose to pursue those ends—dictates of central planners—were not.

    By relying on government coercion, we ended up with a recycling system that made no sense—economically or environmentally. And that’s why we ended up with tens of thousands of tons of recycled items dumped into the ocean. Putting government in charge of recycling was a big mistake.

    If Americans are serious about recycling to create a better future for humans, they’d get government out of the recycling business and make way for entrepreneurs armed with local knowledge and the profit motive.

    Instead of seeing recyclables dumped into our rivers and oceans, we’d see them creating value. That’s a win for humans and the planet.


    Jon Miltimore

    Jonathan Miltimore is the Managing Editor of FEE.org. His writing/reporting has been the subject of articles in TIME magazine, The Wall Street Journal, CNN, Forbes, Fox News, and the Star Tribune.

    Bylines: Newsweek, The Washington Times, MSN.com, The Washington Examiner, The Daily Caller, The Federalist, the Epoch Times.

    This article was originally published on FEE.org. Read the original article.