Negative Capital and the Wealth of Nations

The so-called global economy has generated tremendous international wealth inequality that only increases as globalization deepens. This process is capped by the failure of classical economic theory to incorporate such free market externalities as negative capital . Negative capital can be defined as situations, events, or environmental conditions that degrade or threaten to degrade the standard of living or life expectancy of great numbers of persons, including those living in wealthy nations. These problems cut across issues of sovereignty and security, economic development, and the environment. They can be monetized and have value because the rich will have to pay in order to mitigate them, whether at home or abroad. Payment can take many forms, but it will involve a politics of redistribution. Negative capital is a systemic phenomenon "in nature" without which the classical economic theory is both incomplete and notably ideological. A tamed and therefore enlightened free market, that recognizes and addresses negative capital, may be better equipped to resolve the situations created by its inherent inadequacies.