The ‘Sustainability’ Business: A Gathering of Rent-Seekers

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The Economist Group, publisher of the Economist, has been hosting its seventh annual “Sustainability Week,” with one day in London and three others on virtual platforms.

The event’s website offers a revealing glimpse into the ecosystem that “sustainability” has created — an ecosystem that contains true believers, to be sure, but is also one in which opportunists can take advantage of the pathway it offers to power, profit, and prestige — or at least a job.

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Let Them Eat Lentils

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Some “foods” have no place on a plate — anchovies, capers, and lentils, to pick out but three. Don’t @ me.

It was thus dispiriting to read the now-infamous article by Teresa Ghilarducci in Bloomberg, in which she argues that one way of combating the effects of inflation might be to turn to . . . lentils:

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Bloc Trade: Russia, China, and the Limits of Globalization

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Another week, and more bloodshed in Ukraine. How the Russian invasion will play out remains anyone’s guess, but one result seems increasingly likely. What began as an imperial gambit may well end up with the imperialist transformed into the junior partner, or even satellite, of a greater superpower still on the rise.

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Bad Trade: How Complacency Helps Putin — and Xi

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A week or so ago, I wrote about the way in which the complacency fostered by a quasi-religious belief among Western elites in the inevitability of a curious, universalist vision of progress had “presented Putin with at least a moment of opportunity — and China with rather more.”…

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Larry Fink, ‘Emperor’?

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We live in an age when the Left is increasingly focused on the supposed evils of business concentration, from the “big is bad” ideology of the new antitrust enforcers at the FTC to the attempts to blame inflation on Big Grocery, Big Oil, or any of the other “bigs” allegedly exploiting the beleaguered consumer. And yet the concentration of corporate ownership positions held by a relatively small number of massive investment funds, particularly (but not only) the indexers, has drawn comparatively little criticism from the same quarters. Perhaps their managers’ role in helping create our emerging corporatist state through an ever tighter embrace of “socially responsible” investment and larcenous stakeholder capitalism has acted as a shield of sorts.

Nevertheless, the degree of that concentration has been something to see….

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The CEO as ‘Lawmaker’: A Corporatist Manifesto

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On Monday, the Financial Times ran an article by Paul Polman, the former CEO of Unilever (a company that, as he mentions, was recently in the news over its pursuit of objectives seemingly unconnected to its bottom line). A forceful, if unpersuasive, argument for stakeholder capitalism, it is an interesting and unintentionally revealing read. Above all, it demonstrates how, whatever BlackRock’s Larry Fink may claim, stakeholder capitalism is intrinsically political. Indeed, as it is an expression of corporatism, that is — or ought to be — a statement of the obvious. Corporatism, regardless of the form it takes, is an ideology revolving around an idea of how society should be organized. That is the very essence of politics…

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Larry Fink and the Wrong Kind of Capitalism

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It’s the time of year when Larry Fink, the chairman and CEO of BlackRock, comes out with his annual letter to CEOs, a letter in which he tells CEOs what he expects of them. As BlackRock marked the end of 2021 by passing the benchmark of $10 trillion under management, an impressive figure however you look at it, many CEOs will treat Fink’s thoughts with rather more respect than their shareholders or our democracy deserve — $10 trillion will do that.

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Boris Johnson’s Party Problem

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There are quite a few underlying reasons — political, personal, and ideological — why British prime minister Boris Johnson may now be forced out of office, but that the trigger for his potential downfall has been a series of “parties” (what constitutes a party is now a contentious topic) appears to have surprised some on this side of the Atlantic. To them, it seems, well, a touch weird that a prime minister with a healthy majority could lose his job because his staffers occasionally enjoyed drinks at their workplace (or in the garden outside) — and that he had attended, albeit briefly, one of these get-togethers — even if it was at a time when tough Covid lockdown controls had heavily restricted social gatherings. That Johnson might not have been entirely accurate in his evolving statements about what had occurred, what he knew, and so on, well . . . #ShouldersShrugged.

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European Central Bank Official Admits the Obvious about Greenflation

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The only surprise in this story (to me) is that someone at the European Central Bank, Isabel Schnabel, the member of the ECB’s Executive Board responsible for market operations, has been talking frankly about greenflation. Her motive for doing so may (I’m guessing) come in part from her well-publicized worries about the ECB’s, uh, aggressive use of its balance sheet, but her speech is focused elsewhere than on the quantitative-easing debate.

Schnabel highlights how much energy prices have risen in Europe (a development, it must be said, that’s hard to miss). To be fair, it’s a phenomenon that doesn’t owe a great deal to climate policies (except in the U.K. and, arguably, Germany). However, Schnabel’s key point is that, sooner or later, such policies are going to have a more persistent impact on the cost of energy…

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