Exploitation: To Depletion or Steady State

DEFINITION Exploitation means to use some resource for advantage, benefit, or profit.

Introduction

Lately, I started using a model of “humans as an exploitation machine” to analyze or gain a different perspective on our world. The definition alone does not imply good or bad but we have many contexts of this word which have very negative associations.

Some contexts:

• Social: exploitation often refers to the unfair treatment or abuse of power towards individuals or groups with less power, resources, or agency.
• Market economy: exploitation can take various forms, including labor, natural resources, intellectual property, and market.
• Computer science: an exploit is a code that takes advantage of a software vulnerability or security flaw.
• Military: exploit the initiative to gain a tactical or strategic advantage.

Considering “humans as an exploitation machine”, refers mainly to market exploitation which is neutral toward the ethics of exploitation. In the social context, which sometimes gets mixed into the market context, exploitation is clearly negative.

The mixing of context chiefly occurs when we talk of exploiting the labor resource. This also brings us into the realm of Marx, where workers are exploited by the capital class through political power resulting in low wages, long working hours, unsafe working conditions, and the denial of basic rights. This is often seen in industries that rely on low-skilled labor, such as agriculture, manufacturing, and hospitality. Labor exploitation can also involve the use of child labor, forced labor, and human trafficking.

Market context

In a market economy, exploitation is driven by the pursuit of profit and economic growth. Exploitation happens on both the supply and demand sides. This natural human seeking of advantage is one of the main arguments in favor of the market economy versus other types of economies. It has the overall effect of balancing the needs and demands of its many participants. At least in theory.

Exploiting of labor, as mentioned previously, does mix context with the social. But exploiting of labor markets also includes using to competitive advantage special skills, trainings, productivity, or traits. Exploiting a labor force’s high productivity is not necessarily a negative and in fact, a highly productive labor force may enjoy political power and a high rate of compensation.

Resource exploitation refers to the exploitation of natural resources such as land, water, and minerals for commercial gain. Humans have been exploiting natural resources for survival since the dawn of time. Natural resource exploitation often leads to unequal distribution of wealth and power, with those who control the resources benefiting.

Our modern society has created another form of property that may also be exploited, intellectual property. We have intentionally granted exclusive rights to exploiting intellectual property to those that hold ownership. This right to exploit is presumed to foster innovation and creativity, promote new technologies, and create economic value. Of course there are downsides as well, including: monopolies, higher prices, unreasonable restrictions on fair use, and potential barriers to innovation.

By market exploitation, we generally refer to exploiting temporary imbalances in the market. Market makers are financial institutions or individuals that facilitate securities trading and provide liquidity, smooth markets, and reduced volatility. We also have companies that attempt to use leverage to unfairly or illegally exploit markets to the detriment of all. A great example of this later case is Enron, who engaged in market manipulation to boost profits and manipulate energy prices. Enron created artificial shortages of electricity in California by manipulating the state’s energy market. They also engaged in “round-trip” trades, where they bought and sold electricity back and forth between different companies without any real exchange of power, inflating their revenues and creating the illusion of high demand.

Humans as an exploitation machine

Humans exploit natural resources for survival and economic development. We have been doing this throughout our recoded history and likely our ability to successfully exploit our environment has led to our relative success as a species. While this has led to significant benefits, it has also had negative impacts on the environment.

From the beginning, we have hunted and fished. Ancient cultures such as the Inuit and Native Americans relied heavily on hunting and fishing for their survival. With the advent of modern technologies, overfishing has become a looming environmental issue.

Early on, we exploited our forests, which started when humans began using wood for fuel, building materials, and tools. The ancient civilizations of Mesopotamia, Egypt, and China all relied heavily on timber for building their homes, ships, and other infrastructure. In the Middle Ages, Europe experienced severe deforestation due to the demand for wood for fuel and construction.

The Romans mined extensively. They extracted metals such as gold, silver, and iron. Later, in the 19th century, the Industrial Revolution led to a significant increase in mining activities, with coal becoming a preeminent energy source for factories, manufacturing, and transportation. The environmental damage caused by some of these operations is clear. One only need to look at the areas around the tailings ponds or the strip mines.

Early stage

Mid-stage

Depletion and damage

We don’t know when to stop

How do we account for costs?

Exploitation to depletion

Most of the problems with exploitation occur because we continue until depletion and ignore the collateral damages. There is also a huge rarity bonus built in.

This can result in environmental degradation, depletion of resources, and displacement of local communities who depend on these resources.

Market exploitation refers to the use of monopolistic practices, price gouging, and other forms of market power to extract rents or profits from consumers, often at the expense of their well-being. Market exploitation can also involve the exploitation of intellectual property rights, such as patents and copyrights, to limit competition and maintain market dominance.

While some argue that exploitation is a necessary part of economic development, others argue that it is a moral and ethical issue that must be addressed through regulation, oversight, and the protection of the rights of workers, consumers, and communities.

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