Prominent Capitalist Says Capitalism “Threatens our Existence”

Jeremy Grantham

Jeremy Grantham is a co-founder and chief investment strategist for GMO, a global investment firm that manages $97 billion in client assets and has more than 500 employees worldwide. CBS news called Grantham a “legendary investor,” and his résumé and business background make Grantham about as dedicated a capitalist as you can find anywhere in the U.S. these days. So when someone like Grantham writes that capitalism “threatens our existence,” people should sit up and take notice. Grantham’s February, 2012 quarterly newsletter] (pdf) is a scathing indictment of American capitalism and where it is leading the country: over a cliff. Grantham writes that “You don’t have to be a PhD mathematician to work out that if the average Chinese and Indian were to catch up with … the average American, then our planet’s goose is cooked, along with most other things. Indeed, scientists calculate that if they caught up, we would need at least three planets to be fully sustainable. But few listen to scientists these days.” Grantham points out that “our collective ability to feed ourselves, through erosion and fertilizer depletion has “received little or no attention,” and that “capitalism and corporations have absolutely no mechanism for dealing with these problems, and seen through a corporate discount rate lens, our grandchildren really do have no value.” He also writes, “Capitalism, by ignoring the finite nature of resources and by neglecting the long-term well-being of the planet and its potentially crucial biodiversity, threatens our existence.”

Source: GMO Quarterly Newsletter, (pdf) February, 2012

Leave a Reply

Your email address will not be published.