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By Bruno Martin
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5 As water tables are dropping and aquifers are being depleted in the US, complex and intractable problems are surfacing in multiple sectors of the economy. Much of the nation’s water supply is supported by public utilities that rely on municipal bonds for credit. As water shortages become increasingly severe, conflicts over water usage arise. Because public utilities have to pay their own legal fees, they become vulnerable to legal battles over water supplies. This has spurred credit rating agencies to downgrade the municipal bonds in areas where water shortages are becoming chronic problems.
Others still argue that the solutions are to be found in new technology and government policies. The widespread belief in a technological answer to environmental problems has been elevated to a kind of secular religion. It instills a sense of blind faith and serves as a comforting palliative for those who choose not to look too closely. “Don’t worry,” as the familiar old chestnut goes, “if we can put a man on the moon . ” Yet the irony of our technological sophistication is that it has accelerated the pace at which we are depleting resources.
Leaders in government and the central banks are tossing around trillions in cash in one stimulus or bailout plan after another, hoping to prop up the illusion that our economies have stabilized and can continue to grow for all time. But this is getting harder to do as bailout fatigue is setting in among populations around the world. Meanwhile climate is becoming more erratic and economies are becoming increasingly unstable. These crises are forcing economic change though it remains uncertain if they will change in ways that are good for people or the planet.