Tag Archives: capitalism

Delaying cataclysmic events might hasten their advent

detail tl from abstract painting by Zahrah RIn thermodynamics, students are taught to draw a boundary around the system they want to analyse and to decide whether the boundary is open or closed to transfers of mass and energy based on the scenario they want to model.  The next step is to balance the energy flows across the boundary with the change in the energy content of the system.  This is an application of the first law of thermodynamics which is that energy can neither be created nor destroyed.  Rudolf Clausius is credited with discovering entropy when he realised that when energy flowed as heat across a system boundary it became entropy or disordered energy. For instance, when a steam engine does work and discharges heat to the environment. The second law of thermodynamics states that entropy of the universe increases in all real processes.  Thermodynamicists are not the only people who draw boundaries and decide whether they are open or closed.  Politicians and generals draw national boundaries occasionally and more frequently decide whether they are open or closed to people, goods and capital.  After the first world war economists, such as Friedrich Hayek and Ludwig von Mises, proposed that conflict would be less likely if people, goods and capital could flow freely across national boundaries.  These ideas became the principles on which the IMF and World Bank were formed at Bretton Woods in July 1944 in the closing stages of the second world war.  Presidents of the USA, since Ronald Reagan, have taken these ideas a step further by unleashing capitalism through deregulation of markets in the belief that markets know best.  However, ever-growing capital generates an ever-increasing rate of creation of entropy and disorder in the world [see ‘Existential connection between capitalism and entropy‘ on May 4th 2022] and perhaps attempting to reduce conflict by unfettering capital actually accelerates the descent into chaos and disorder because entropy increases in every transaction.

Sources:

Rana Foroohar, When the market fails us, FT Weekend, 23 April/24 April 2022.

Gary Gerstle, The Rise and Fall of the Neoliberal Order: America and the World in Free Market Era, Oxford: OUP, 2022.

The cataclysmic events referred to in the title are those identified by Thomas Piketty as being the only means by which economic inequality is reduced, i.e., wars and revolutions [see ‘Existential connection between capitalism and entropy‘ on May 4th 2022].  The title was inspired by correspondence from Bob Handscombe with whom I wrote a book entitled ‘The Entropy Vector: Connecting Science and Business‘.

Existential connection between capitalism and entropy

global average temperature with timeAccording to Raj Patel and Jason W Moore, in his treatise ‘Das Kapital’ Karl Marx defined capitalism as combining labour power, machines and raw materials to produce commodities that are sold for profit which is re-invested in yet more labour power, machines and raw materials.  In other words, capitalism involves processes that produce profit from an economic perspective, and from a thermodynamic perspective produce entropy because the second law of thermodynamics demands that all real processes produce entropy.  Thermodynamically, entropy usually takes the form of heat dissipated into the environment which raises the temperature of the environment; however, it can also be interpreted as an increase in the disorder of a system [see ‘Will it all be over soon?’ on November 2nd, 2016].  The ever-expanding cycle of profit being turned into capital implies that the processes of producing commodities must also become ever larger.  The ever-expanding processes of production implies that the rate of generation of entropy also increases with time.  If no profit were reinvested in economic processes then the processes would still increase the entropy in the universe but when profit is re-invested and expands the economic processes then the rate of entropy production increases and the entropy in the universe increases exponentially – that’s why the graphs of atmospheric temperature curve upwards at an increasing rate since the industrial revolution.  As if that is not bad enough, the French social economist, Thomas Piketty has proposed that the rate of return on capital, “r” is always greater than the rate of growth of the economy, “g” in his famous formula “r>g”.  Hence, even with zero economic growth, the rate of return will be above zero and the level of entropy will rise exponentially.  Piketty identified inequality as a principal effect of his formula and suggested that only cataclysmic events, such as world wars or revolutions, can reduce inequality.  The pessimistic thermodynamicist in me would conclude that an existential cataclysmic event might be the only way that this story ends.

Sources

Raj Patel & Jason W. Moore, A history of the world in seven cheap things, London: Verso, 2018.

Thomas Piketty, A brief history of equality, translated by Steven Rendall, Harvard: Belknap, 2022.

Diane Coyle, Piketty the positive, FT Weekend, 16 April/17 April 2022.

Image: Global average near surface temperature since the pre-industrial period from www.eea.europa.eu/data-and-maps/figures/global-average-near-surface-temperature

Spokesperson for society

There is an excellent exhibition of Keith Haring’s work at the Tate Liverpool until November 2019.  Keith Haring and I were born a couple of years apart but that’s where the similarity ends.  He was an American artist who collaborated with the likes of Andy Warhol and Jean-Michel Basquiat and was influenced by Pablo Picasso, Walt Disney and Dr Seuss.  He was part of the New York street culture of the 1980s and many of his early works were forms of graffiti painted in subways and on the sides of buildings.  Some people think that art should challenge the way you think about the things; however, “Haring felt that the artist is ‘spokesman for a society at any given point in history’ whose visual vocabulary is determined by their perception of the world”.  His work about racism, the excesses of capitalism and the misuse of religion for oppressive purposes seem as relevant today as thirty years ago.

Sources:

Quotation from the one of exhibition displays with apologies to curators of the Tate exhibition, Darren Pih and Tamar Hemmes.

Comment on art challenging the way we think based on an article by Orla Ryan in the Financial Times Magazine on June 29th & 30th, 2019.