Seven years ago, on this day, August 19th, 2019,
August 19 2019 Friedman Doctrine repudiated by Business Roundtable
The Purpose Revolution – The Friedman Doctrine Is Out; the Stakeholder Doctrine Is In
The amount of carbon dioxide in the air was 412ppm. As of 2026, when this post was published, it is 430ppm. This matters because the more carbon dioxide in the air, the more heat gets trapped. The more heat, the more extreme weather events. You can make it more complicated than that if you want, but really, it’s not. Fwiw, I have a tattoo of the Keeling Curve on my left forearm.
The broader context was that business lobbies have always regarded environmental concerns as at best an impediment, and at worst part of an International Communist Conspiracy. Business lobbies tend to be made up of today’s successful enterprises, the insurgents chasing new technologies and new production methods don’t have the financial muscle or the spare capacity to form effective lobbying groups, and if they do, that effective lobbying group will probably get taken over by the big powerful actors wanting to make sure that nothing happens.
In the early 1970s Milton Friedman had dismissed environmental concerns by saying that they would be solved under a regime of private ownership. Friedman was well aware of the carbon dioxide issue, and I can say this confidently, because he corresponded with William Barbert, and his correspondence was published in an issue of the CO2 Newsletter. And his Friedman doctrine had basically been “greed is good and everything will work out if we just let the rich people do whatever they think is best.” This is demented. This is hardly new, but it has been at various times convenient for people, not just the rich, to believe. Let me talk to you someday about how most academics are basically the equivalent of monks arguing about angels on the head of a fucking pin.
The specific context. So why did this happen in 2019. I think the Business Roundtable realised that they were doing themselves some reputational damage by failing to pretend to give a shit, and you get this, you get business lobby groups knowing that they have to look sane and reasonable if they want to be effective. See, for example, the Australian Mining Industry Council having to change both its tune and its name after it went in so hard against the Mabo decision on Aboriginal land rights in 1992.
What I think we can learn from this
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What happened next
I’ll have to look and see if the Business Roundtable has suddenly endorsed Greta Thunberg. Somehow I doubt it.
On this topic, you might like these other posts on All Our Yesterdays
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References
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You can see the chronological list of All Our Yesterdays “on this day” posts here.
What do you think? Does this pass the ‘so what?’ threshold? Have I got facts wrong? Interpretation wrong? Please do comment on this post, unless you are a denialist, obvs.
If you want to get involved, let me know.
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Also on this day:
August 19, 1968 – Is Man Spoiling the Weather? (yes)
August 19 1997 – “The denialists take Canberra” with “Countdown to Kyoto” conference
August 19, 2002 – Pacific Islands make unreasonable demands about continuing to live