You" you told me before we started recording, you were also calling it "The Failure of Laisse Faire Capitalism, and the erosion of the West'.
How does this book tie in with what you're saying?
Paul Craig Roberts: Well, it actually" explains all of that.
It shows problems in economic theory today. These problems are severe in many ways, but they're especially severe in that most of economics as it developed, applied to what environmental economists call "an empty world'. That is, there were abundant resources. They" the ability of nature to absorb pollution hadn't really been tested, so there was plenty of room for polluting the air all over the world, the soil. The external costs of production were small because the planet wasn't crowded, populations were low. And so when you develop economics in that kind of environment, it doesn't apply to the present world which is a full world. It's full of people, and it's full of polluted natural resources. It's a world in which the natural resources have been exploited and declined dramatically. And so when you look at that world, and you try to find old fashioned economics, what you see is, well you know, actually, the increases in output that they call "economic growth' are actually less valuable than the cost of the additional production. But the process goes on because the cost of the production is not included in the output. For example what is the goal"
Rob Kall: Paul" Paul, you know this sounds like Socialism. My god! [Paul laughing in background]. I mean, you're basically saying that corporations, and even Governments have to capitulate in, because of the bigger" [Paul in background: No, it's worse than that!] issues.
Paul Craig Roberts: It's worse than that, Rob [laughing]. Because" look me give you an example.
Let's take agri business. All the fertilizers that have to be used because the soil's been ruined. They float down the Mississippi River. They go into the Gulf of Mexico. They're now extensive "dead zones' in the Gulf of Mexico. That means the sea is dead! There's no life in these dead zones. Those are a massive cost, but they're not included in the cost of the food when you buy it in the store. It's an external cost imposed on society in the" and, and it's not a cost that's paid in the production of the agri business crops. That's one good example.