(FinancialHealth.net) – Last month, 16-year-old climate activist, Greta Thunberg, spoke to the World Economic Forum in Davos, and her comments led to some mockery from a Trump administration official. He isn’t the first to mock her, in part because Thunberg enjoys just as many amenities as the rest of the world… amenities that exist because of big businesses. But that doesn’t change the fact that she could be right.
Thunberg told business leaders in the room that they’re to blame for “the biggest crisis humanity has ever faced.” She blames big business for climate change because she believes corporations make decisions to actively harm the planet for increased profit, polluting waterways, causing deforestation and depleting natural resources.
US Treasury Secretary, Steven Mnuchin, asked later, “Is she the chief economist?” But the Swedish teen isn’t the only person who’s concerned; some economists are as well.
A joint report from the Stanford Institute for Economic Policy Research and The Hamilton Project warned of the impact of climate change on certain industries, energy use and other problems. They found the gross domestic product (GDP) losses could range from billions to even trillions of dollars.
In one scenario, researchers warn of a per capita GDP loss of between 6.7% and 14.3%. They explain that a 5% GDP reduction in 2019 would have been about $1 trillion. Some of the industries affected could include fishing, tourism, and agriculture.
The GDP is the total value of all of the goods and services the country produces. When the economy experiences a drop like that, it leads to higher unemployment, fewer investments and lower wages. That’s what makes these predictions so ominous.
There’s no doubt Thunberg is a kid, and she does have a lot of learning to do. She may even have a few good ideas to help make our world a better place. But accusing business leaders of killing the planet? That isn’t productive or helpful to anyone.
However, we may all feel the economic impacts of climate change down the road, and getting a handle on it now could be helpful. Convincing business leaders and government officials to work together to balance the concept of profits and a healthy planet at once may be the best way to prevent further damage.
~Here’s to Your Financial Health!
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