So much for free market conservatives!
Under the transparent guise of “putting a stop to woke capitalism” Republican politicians across the US are trying to restrict businesses that threaten to disrupt incumbent industries. While their cover story is protecting their state’s interests and economies, they are actually just protecting their ideological allies and top donors. If you have any doubt about this, consider the following examples.
I earlier wrote here about Governor DeSantis attempt, which has since succeeded, to ban cultivated meat in Florida, stating “We will save our beef”. The incumbent beef industry is clearly threatened by action to limit climate impacts. But to ban the threat in order to protect them is like banning solar and EV’s to protect the oil industry. It’s ostrich economics and very much an own goal. It means Florida will lose due to the decline of the beef industry but then also lose the economic benefits of the technologies and innovation that will likely define the future of our food industry.
The second example is Texas’s decision to ban banks, which have policies limiting their involvement with fossil fuel companies, from dealing in the state. Again, we see ideology and economic ignorance. Rather than protecting the state’s economy it is estimated Texan taxpayers will pay an additional $22.5bn in interest payments over the next 30 years because of the move. Meanwhile, it’s fossil companies will live or die based on demand in national and global markets not by decisions made in the state.
Both these examples reinforce my belief that incumbent industries, like fossil fuel companies and perhaps now the livestock industry, will not survive the inevitable economic transition as we seek climate stability. They will fight tooth and nail until their bitter end, avoiding change until they collapse. While a well-recognised risk for fossil fuel companies, the livestock industry is showing similar tendencies.
How long do they have to choose between embracing change or decline? We shall soon see.
#incumbents #disruption #livestockindustry #alternativeproteins
Published by Paul Gilding | 5 September 2022