Economists propose three steps to move beyond capitalism for climate solutions

Two prominent economists argue that humanity’s current economic system fundamentally blocks effective climate action, proposing a radical shift toward economic democracy as the solution. Jason Hickel and Yanis Varoufakis contend that capitalism’s structure—dominated by major banks, corporations, and wealthy asset owners—prioritizes profit over planetary survival.

The authors highlight a striking contradiction in modern society: while technological advances have given us unprecedented capacity to produce food and goods, millions still face severe deprivation even as the planet struggles under the burden of overconsumption. This paradox, they argue, stems from capitalism’s concentration of decision-making power among a small elite who control capital, leaving workers and communities without meaningful input into production choices that affect their lives and environment.

Unlike markets, trade, and entrepreneurship—which have existed for millennia—modern capitalism represents what the economists call an “economic dictatorship.” Even in democratic societies, they note, political choices rarely translate into changes to the underlying economic system that drives environmental destruction.

Their proposed alternative centers on democratizing the economy, giving workers and communities direct say in production decisions, resource allocation, and distribution of benefits. While the article excerpt doesn’t detail their specific three-step plan, the authors suggest that restructuring economic power away from capital owners and toward producers could unlock solutions to both social inequality and ecological crisis that capitalism has proven unable or unwilling to address.