Showing posts with label Supreme Court. Show all posts
Showing posts with label Supreme Court. Show all posts

Thursday, May 8, 2014

We the People: Our Constitution and our quality of life (Part 1: Establish Justice)

The Preamble to the Constitution of the United States does not hold any legal authority, so we cannot turn to it for redress.  However, it gives us great insight into the intention of those who founded this country, and the goals they hoped to achieve through the alliance of states that they wished to form one nation.  The Constitution and its Preamble predate the major impacts of the industrial revolution. In light of what we now know about those impacts, and looking back on both the last forty years worth of remedies to those ills and the last decade's attempts to reverse these remedies, I want to examine each of the major tenants of the Preamble to see what it might say to us about what obligations we have as a nation to each other through our utilization of natural resources.

"Establish Justice"

Most everyone in my generation can recite the Preamble almost word for word thanks to Schoolhouse Rock.  (They left out one phrase in order to fit the rhythm, so many of us miss that in recitation.)  Politically speaking, the first words: "We the people of the United States of America, in order to form a more perfect union" speak volumes about the writing of the Constitution; namely, that the document would join the people of the country together as one, and not just the states as previous attempts had done.  Although interesting, I will start with what that unified people purported to do with this new alliance.

The people of these new United States first sought to establish justice.  Although we know that in preserving slavery, this goal had only limited meaning, within that limited meaning, it meant that full citizens had a right to fair treatment before the law, and most importantly consistent treatment.  This implied that whether you lived in Massachusettes or Georgia, that you would reasonably have some consistency before the law.  It did not require equal or similar laws, that still remained the prerogative of the state.  It did, however, seek to place a check on the states to ensure that they provide a just foundation to society.  It also recognized that prior to independence, we lived in an unjust society - at least according to the founders.  The political-economic system that extracted wealth from the colonies without fair representation drove the otherwise loyal and content to join forces with those wishing religious freedom to create the groundswell that fed our fledgling nation.

In addition to this reigning-in of the heretofore inconsistent justice provided by the states under the Articles of Confederation and prior to that the colonies under English rule, the concept of establishing justice also suggested the idea that where activities (mostly commercial) crossed state lines, that a federal government would provide clear guidance that gave business a foundation on which to operate.  This manifests itself in the commerce clause of the Constitution that gave Congress the power to regulate interstate commercial activities.  The first "free trade" agreement of our country...in fact, in combination with the "general defense" (to be discussed later), the primary drivers of our union...this necessity to pool disparate strengths and resources for greater commercial benefit was a stroke of foresight because it laid the groundwork for the development of infrastructure (rail and eventually telegraphs and roads) that would define the economy for most of the second half of our country's existence.

These primary interpretations of "establishing justice" have great impact when analyzing the mechanisms we employ to maintain society in the industrial age.  As part of the "deal with the devil" we make to power our economy with dirty fuels, we marginalize those who cannot afford to move away from industrial production sites (power plants, mines and wells, and chemical facilities) providing them less of a quality of life than those who can afford to choose areas far from these hazards.  Our economy does not reflect the true cost of the damage caused by these operations, but instead externalizes them from the price that customers pay for the end product (whether it be plastics, energy, or processed materials).  We see these costs only marginally through taxes paid for government cleanup or healthcare programs that pay to treat the diseases brought on by the pollution. More importantly, we as consumers do not see these costs in the prices we pay so that we might make the choice both economically and morally.  If we truly want to realize this goal of establishing justice, we must fix our economy and ensure that we include all of the costs - human and economic - in the prices paid for goods.  A good or service that increases one person's quality of life does not have value if it degrades the life of another in the process of production.

Another area of import, and one just recently reaffirmed by our Supreme Court, covers the idea of regulation of the combined atmosphere and waterways we share.  Weather patterns and natural water flows mean that air and water in one state will likely flow to another.  Anything that industrial production does to pollute one state will result in damage to another.  If a "downstream" state chose to make environmental improvements, but could not reap the improved quality of life that would result because an "upstream" state continued to pollute, then that would violate the precept of justice. In the 1970s, we enacted the Clean Air and Clean Water Acts precisely for this purpose: so that we as a nation could recognize the importance of both to our continued existence and success.  We have cleaner air and cleaner water because of them, and this smart regulation has provided a clear and common foundation from which businesses can sprout and thrive.  The founders never considered a country where localized anarchy ruled, and where one community or state had no redress against another.

Establishing justice requires us to both seek out and eliminate environmental degradation that harms the life of another.  Whether that person lives near us, or simply downstream of an industrial operation on which we rely, we cannot ignore the suffering our actions cause regardless of how remote to our lives.  Our Constitution created a civilization based on "laws not men" so that we might have the freedom to better ourselves as a nation.  We have reached the point where that bettering has to apply to all, and not just to some.  We finally have the ability to deliver justice, and now we have the obligation.

Thanks to the Heritage Guide to the Constitution for some of the historical context.



Friday, May 2, 2014

Friday Five: May 2, 2014

This week we learned a great lesson of economics: it is not a predictive field of study, only a reactive one.  As much as we like to think we can foretell the future, when it comes to basing our quality of life on the availability of limited commodities, we build our houses on sand instead of rock.
Factbox: Energy Future Holdings' road to bankruptcy
"Energy Future Holdings filed for Chapter 11 protection on Tuesday, seven years after it was taken private in the largest-ever leveraged buyout. Over the last five years, the company used a number of financial maneuvers to manage a significant debt load, but ultimately could not convince its many and disparate creditors to restructure its balance sheet outside of bankruptcy court."

Case in point...six years ago when several of us were talking about the looming horizon of grid-parity for solar, the vast majority did not believe. Now, it is a reality. Next up: buildings that need no outside energy source other than what's available on site. They will be so widely available that they will be a code requirement within 10 years.
When it comes to solar power, the market is finally making environmentalism easy
"Little Sun is a good example of how the market and environmentalism don’t have to compete: Both the company and its evangelists are motivated to propagate an affordable form of non-polluting energy. The economics are working in concert with solar’s advantages of sustainability and independence over traditional power sources. And, suddenly, that intersection of efficacy and impact is making solar power as a whole more desirable than it’s ever been before."

One of the greatest challenges to a clean energy economy has come from unchecked conservatism. Conservatism that demands proof before implementation provides great value to society; conservatism that in the face of science, economics, and law holds onto a harmful status quo has no place in our society.
WSJ overruled by Supreme Court on clean air laws
"The regulations of smog and soot pollution will yield up to $280 billion in health benefits nationwide by preventing hospital visits and avoiding lost work days, according to the EPA's cost-benefit analysis. The human benefits are just as stark, with The American Thoracic Society estimating the new transfer rule could prevent upwards of 40,000 premature deaths annually."

I believe this in large part because of the bad business decisions that such extreme conservatism begets. Utilities can play a strong and stabilizing role in the transition to a clean energy future. However, as long as their leaders cling to the entitlement that they deserve guaranteed return on bad investments, we will continue to threaten the quality of our existence.
What future role for today's utilities
"Maybe our current utilities will provide enabling infrastructure, or maybe they will become insignificantly small players – or disappear. After all, the grid as enabling infrastructure might get smaller, and communities can own the grid and provide other enabling services – storage comes to mind. In the end, what is at stake in the energy transition is not just a choice between various low-carbon sources of electricity. It is also a choice between 1) corporations promising consumers low energy prices (and you can go to hell if you don’t want the giant project near your home) and 2) local renewables that may look more expensive, but you pay those higher prices back to you and your neighbors – and you have input into what gets built in your community."

Sound business thinking not only recognizes and accepts, but fully embraces, the limitations of the natural systems that underpin our entire existence. Requiring business leaders to act responsibly when it comes to protecting our quality of life does not place unreasonable obstacles in the way of progress any more than requiring a credit check places an unreasonable restriction on borrowing money. We need to mandate a minimum amount of protection to continue our existence, and not allow irresponsible behavior to jeopardize our future.
The one thing every business dies without
"So take a day this week to think hard about how the planet underpins the business, and how your company and sector should deal with that reality. Consider three steps. First, ask some leading questions: What do climate change and extreme weather mean for your business, your customers, and your supply chain? How do growing resource constraints like water shortages, or rising commodity prices, affect your value chain and your margins?"

Happy Friday!
(Photo: raulbaenacasado/Shutterstock)