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Imagining a Post Pandemic World

How might a post-pandemic world look and feel? Let’s imagine a creative team at a New York City advertising agency pitching a campaign in 2050 for a new perfume (more than most products, perfumes are sold by attaching to the dreams and aspirations of their times).  The Big Apple, ...

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Betting the farm against climate change


Friday September 09, 2011

Global warming is extracting real costs, even in states where the governors are in denial.

Footprints mark the bank of a partially dried-up pond near downtown Dallas, Texas August 1. Scorching heat and lingering drought across Texas have pushed electric use to a new all-time peak according to the state grid operator. (Tim Sharp / Reuters)

Footprints mark the bank of a partially dried-up pond near downtown Dallas, Texas August 1. Scorching heat and lingering drought across Texas have pushed electric use to a new all-time peak according to the state grid operator. (Tim Sharp / Reuters)


 

Leon Trotsky is reputed to have quipped, "You may not be interested in war, but war is interested in you." Substitute the words "climate change" for "war" and the quote is perfectly suited for the governors of Texas, Oklahoma and New Mexico, all of whom have ridiculed or dismissed the threat of climate change even as their states suffer record-breaking heat and drought.

In his book, "Fed Up!," Texas governor and presidential aspirant Rick Perry derided global warming as a "phony mess," a sentiment he has expanded on in recent campaign appearances. Susana Martinez, the governor of New Mexico, has gone on record as doubting that humans influence climate, and Mary Fallin of Oklahoma dismissed research on climate change as a waste of time. Her solution to the extraordinary drought: Pray for rain (an approach also endorsed by Perry).

Although they may dismiss climate change, a changing climate imposes costs on their states and the rest of us as well.

In Texas, the unremitting heat has been straining the capacity of the electric grid, killing crops and livestock, and threatening water supplies. As reported in the Wall Street Journal, the grid's governing body, the Electric Reliability Council of Texas, bases its forecasts on the average demand over the previous 10 years. In a world without the threat of global warming, this is an entirely reasonable approach. But what if climate change makes the past an unreliable guide to the future? Then Texas is left with the present situation, in which the grid operator is forced to procure power in a tight market where wholesale prices have skyrocketed to 60 times normal.

Grid problems in Texas are but one pixel in a vast panorama of weather-related costs. In 2010, extreme drought in Russia and floods in Australia contributed to a doubling of grain prices. This year, floods from the Dakotas to Louisiana, and drought in the American Southwest and parts of Europe, have kept grain prices high.

The floods in Australia also contributed to a rise in steel prices in 2010 by closing Brisbane's port and interrupting the shipment of iron ore. The Mississippi floods this spring affected the delivery by barge of materials ranging from grain to such basic manufacturing chemicals as caustic soda and cumene. This year may surpass the 2008 record of $9-billion-plus weather-related disasters, and it probably will be the costliest in U.S. history in terms of tornado damage. Add it all up — well, you can't because, as in the case of the Mississippi floods, it's hard to pry apart weather-related damage from the compounding effect of dunderheaded human actions such as walling off the river from its natural flood plain.

Politicians who dismiss the risk of climate change like to talk about the uncertainties of the science. And, at least in one sense, they're right. It's impossible to assert that global warming contributed X amount of damage to this year's floods, much less finger climate change as a precise component of the extraordinary violence of this spring's tornadoes. The best climate science can say is that a warming globe provides a nurturing context for more intense storms and weather extremes. Scientists can offer only scenarios, rather than a script, as to how that will play out.

Richard Seager of Columbia University's Lamont-Doherty Earth Observatory labs offered one such scenario in a much-discussed paper in the journal Science. It postulated that a warming globe would shift upper-atmosphere circulatory patterns and lead to "perpetual drought" in the American Southwest and other subtropical regions around the world.

Given that events on the ground have been playing out in a way that supports Seager's hypothesis, one would think, for instance, that planners for electrical grids and other sectors likely to be affected would stress-test their models for situations in which prolonged heat and drought became more frequent events. Via email, Seager told me that, indeed, the study had prompted concerned government officials to contact him. But how likely is any follow-up action if the very highest elected officials in the affected states dismiss the threat with scorn?

Though there have yet to be political costs to adopting an anti-scientific posture on the threat of climate change, the real economic costs of mispricing this risk have caught the attention of a good segment of the business community, from commodity traders to insurers. Reinsurers in particular (companies that insure the insurers against catastrophe) see risks on a global scale and have the data that allow them to sort out local effects from global trends. Insurers also are the best equipped to price those risks — when politicians let them.

For instance, increased hurricane risk in Florida caught the attention of insurers and reinsurers in the 1990s, even as people flocked to the coast to live. Responding to the perceived threat, insurers tried to raise rates, but a succession of Florida governors stymied these increases, causing many insurers to abandon the market and the state to form an insurance pool to provide protection for homeowners.Rick Scott, the new governor, remarked on the record that he does not believe in climate change, which means Florida's taxpayers — and the rest of us, if a major disaster strikes — have joined him in making a bet that global warming is a myth.

In the states governed by climate-change deniers — and in the nation as a whole, where we are doing too little to address the threat of a warming globe — nature seems to be calling that bet.

Eugene Linden is the author of "The Winds of Change: Climate, Weather, and the Destruction of Civilizations," among other books. In 2005, he helped edit "Climate Change Futures: Health, Ecological and Economic Dimensions," a project undertaken by Harvard Medical School and sponsored by the United Nations Development Program and Swiss Re, a worldwide reinsurer.
 
 

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Short Take

Relaxing COVID-19 Restrictions will Kill, not Save, the Economy


 

[This is a more developed version of the previous Short Take}

Those who want to relax mandates on self-isolation and social distancing to save the economy have got it exactly backwards. Reopen society too soon, and we risk destroying the economy as well as public order and our shaky democratic institutions. The reason comes down to two words: supply lines.

 Supply lines for necessities such as food are already under stress. Those going to grocery stories encounter random instances of empty shelves and vegetable bins. Smithfield Farms shut down a South Dakota plant that supplies roughly 4% of the pork in the nation after over 500 of its workers tested positive for the coronavirus. Other giant meat processors such as Tyson have also shut down plants for similar reasons. Farmers in the West are having trouble finding workers to harvest the crops now reaching maturity in the fields. And even if they manage to get the crops picked, farmers are out of luck if the truckers fail to show up, or the flow of packaging for their products get interrupted. 

Right now, these disruptions are episodic, but that should be concerning because we haven’t even seen the end of the first wave. What we have seen is that vital front-line workers such as nurses, doctors, EMT’s, and other first responders have had trouble finding protective equipment and maintaining morale. Some have staged walkouts over the dangerous conditions, and these are workers with a sense of mission.

By contrast, for most of the hourly-paid workers who keep supplies made, distributed, and sold, their work is a job that pays the bills. It would be appropriate if society recognized that they played a vital role, but mostly these workers encounter demanding bosses, monotony, and surly customers. If sick, they are not going to work – nor would we want them too. And they are not likely to risk their lives if going to work exposes them to contagion.

Disruption of one link, e.g. the trucker that delivers food the last mile, could halt a supply chain. COVID-19 is a threat to every link. Should a second wave hit before there is a readily available, cheap and effective treatment, it’s a very high probability that many supply lines will be disrupted and filling the gaps could easily overwhelm the nation’s businesses. 

Even today, on the evening news, we see images of vast caravans of cars lined up to get supplies from food banks. Imagine two weeks of empty shelves in the stores that feed our cities. How likely is it that civil order could be maintained in that situation? Will people suffer in silence if they realize that they can’t buy food for their kids because our leaders reopened the economy before a treatment was available because they wanted to prop up the stock market (which is how it will be portrayed)? If we want to look analogues for what life is like once supply chains break down, they’re readily available today in cities like Mogadishu, Kinshasa, and Port au Prince. 

 Thus far, the Trump administration’s response to the pandemic seems to be a mélange of Boss Tweed, Don Corleone and Inspector Clouseau. For the next act, the administration has a choice: Churchill, who bolstered British morale during the London Blitz, or Pol Pot, who sacrificed millions of his countrymen for a bad idea. Let’s hope those around Trump can convince him that the cure for the disease is the cure for the economy.
 



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