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01 / 05
Predictions of the End of the World, Redux

Blog Post | Economic Growth

Predictions of the End of the World, Redux

Calls for degrowth to save the planet threaten to become a self-fulfilling prophecy.

Summary: For decades, dire predictions of environmental and economic collapse have failed to materialize, as human ingenuity and technological progress have consistently found solutions to resource scarcity and pollution. The 1972 Limits to Growth report, along with warnings from figures like Paul Ehrlich, misjudged the resilience of markets, innovation, and human adaptability. Today’s degrowth movement echoes past alarmism even though history shows that economic growth remains the key to solving environmental challenges and improving global prosperity.


The news of the impending end of the world reached a small European country first. On August 31, 1971, the Dutch newspaper NRC Handelsblad made headlines with a global scoop: “Disaster threatens the world.” The article set a pretty grim tone in its opening sentence: “If the world carries on as we are doing now, there will be a huge catastrophe within a few decades.” In case you’ve forgotten about the end of the world, or were too young to have lived through it, the news was about a draft version of Limits to Growth, the famous report commissioned by the Club of Rome that had circulated confidentially among Dutch journalists.

Before long, the alarming news spread across the rest of the imperiled world. More than 30 million copies of Limits to Growth were sold worldwide in over 30 languages. The report’s aim was ambitious: to chart the current state and future of the world. Its credibility largely stemmed from its groundbreaking use of a technology that was still novel and awe-inspiring at the time: computer models. Developed by Massachusetts Institute of Technology computer scientist Jay Forrester, the “dynamic model of the world” in Limits to Growth used five basic parameters: population, food production, industrialization, pollution, and consumption of raw materials. The computer then projected the future state of the world using various assumptions about population growth and technological innovation. The journalists at NRC got the message: Unless humanity drastically altered its course, the world was on a path to total catastrophe—either mega-famines, catastrophic pollution, or depletion of resources, most likely all three at once.

These looming disasters had a single, fundamental root cause: unchecked growth. If you read the 1972 report, it’s clear that the only scenarios promising a happy outcome involve curbing the growth of both the human population and the global economy. Time and again, the mighty machine spat out the same answer: Stop growing, or you’re doomed. Thus warned the jacket flap of the first edition of Limits to Growth: “Will this be the world that your grandchildren will thank you for? A world where industrial production has sunk to zero. Where population has suffered a catastrophic decline. Where the air, sea, and land are polluted beyond redemption. Where civilization is a distant memory. This is the world that the computer forecasts.”

A Gloomy Era

If you think ours is a gloomy time, you haven’t visited the 1970s lately. After the first Earth Day in 1970, the New York Times editorial board issued a dire warning: Rampant pollution and resource depletion were steering humanity toward “intolerable deterioration and possible extinction.” In his wildly popular book, The Population Bomb, the biologist Paul Ehrlich famously proclaimed that “the battle to feed all of humanity is over.” Despite any measures we might adopt, hundreds of millions would face starvation in the coming decades. Throughout the 1970s, Ehrlich continued to forecast one disaster after another. More than 20 times, the charismatic Stanford professor with his handsome sideburns appeared on The Tonight Show to preach hell and damnation. Much like the Club of Rome, Ehrlich predicted the exhaustion of resources within a few decades and the “end of affluence.” And that’s not even to mention the ozone problem. When Sherwood Rowland, the chemist who discovered the ozone hole, returned home one fine day in 1974, his wife asked how his work was going. He replied: “It’s going very well. It just means, I think, the end of the world.”

This pervasive sense of gloom and doom reached the highest echelons of political power. At the end of his presidency, the late Jimmy Carter released Global 2000, a comprehensive assessment of the world’s current state and future prospects that echoed the message of the Club of Rome’s Limits to Growth. If prevailing trends continued, the report warned, the planet would be “more crowded, more polluted, less stable ecologically, and more vulnerable to disruption than the world we live in now.” Hardly an original take in the foreboding atmosphere of the 1970s, but as Time magazine pointed out: “For the first time, the US Government has added its full voice to the chorus of environmental Cassandras.”

In Europe, no less, quite a few powerful people were swept away by the prevailing mood. A striking example is Sicco Mansholt, the socialist and architect of the European Union who had read a draft version of Limits to Growth and was converted almost overnight. In a long letter to the president of the European Commission in 1972—just a month before he was to assume that very position —Mansholt made no bones about it: “It is clear that the society of tomorrow cannot be based on growth, at least not in terms of material goods.” Mansholt’s plans were far-reaching: Europe should prioritize food production and other basic provisions while imposing heavy taxes on nonessential goods. The ultimate goal was a “strong reduction in material goods per capita.” Mansholt had grand plans to defuse the population bomb as well: imposing fiscal penalties on families with too many children and applying diplomatic pressure on poor countries to “stabilize” their “frightening” population growth. If we failed to act, he said, catastrophe was inevitable.

A Self-Defeating Prophecy?

And yet, amazingly, we’re still hanging in here! Despite countless confident warnings, the catastrophes that were predicted in the 1970s have not materialized.  In fact, by many measures, things have improved dramatically. Environmental pollution has dropped sharply in the past 50 years (certainly in rich countries), global poverty plummeted, and raw materials have actually become cheaper and more plentiful. Not only has the predicted mass starvation never materialized, but famines are almost a thing of the past. So, should we be grateful to the Club of Rome for sounding the alarm just in time? Is this a classic case of a self-defeating prophecy (also known as the “prevention paradox”) where a major disaster doesn’t happen precisely because people heeded the warnings? Not at all! As a matter of fact, humanity never changed course in the way the Club of Rome counseled. Global population and gross domestic product kept climbing, and people continued to deplete finite resources. It is true that a handful of developing countries like India and China, pressured by Western doomsayers, turned to harsh birth control policies, which led to disastrous humanitarian outcomes. But that didn’t significantly alter their long-term demographic paths, and in any case, even in countries without such coercive measures, the forecasted famines never happened.

Everyone was scared out of their pants for a while, but in the end, people carried on as usual, at least in the West. Whatever their true convictions, most European politicians understood that Mansholt’s plans for mass impoverishment amounted to political suicide. In the United States, Jimmy Carter suffered a landslide defeat against Ronald Reagan, who had railed against Carter’s environmental gloom in his presidential campaign and promised to usher in a new era of growth and prosperity. In the next decades, milder forms of growth skepticism—think sustainability, circular economy, soft energy paths, planetary boundaries, and environmental, social, and governance—seeped into public discourse and were adopted by mainstream politicians, especially in Europe. But let’s be real: Policymakers never really tried to hit the brakes on economic growth. A growing pie was just too important for maintaining social harmony and covering the rising costs of social security and pensions.

What happened instead is that humanity figured out smart solutions to our environmental challenges—ones that no doomsayers had anticipated. Just look at the supposed global food shortage. In 1972, Mansholt expressed doubts about whether we could “offer a population of six billion a reasonable level of comfort.” Ehrlich was absolutely confident that “millions of people will starve to death” by the end of the decade. Fast-forward to today, and the global population stands at eight billion people. We’re harvesting more food than ever, all while using less agricultural land, and more people are suffering from obesity than hunger. The massive famines were averted not because we took the doom-mongers’ warnings to heart—like a self-defeating prophecy—but because we innovated our way out of trouble.

While Ehrlich was busy predicting millions of deaths on The Tonight Show, other scientists were rolling up their sleeves and finding solutions. In a backwater region in Mexico, agronomist Norman Borlaug dedicated years to developing new and improved varieties of corn, wheat, and other crops—first to make them resistant to blight and then to raise yields and improve taste. Thanks to fertilizers, modern irrigation, and mechanized farming, the Green Revolution led to a staggering increase in yields—at least doubling outputs, and in Mexico, the increase was sixfold. Ehrlich opined that India would never be able to feed itself and suggested tying food aid to forced sterilization programs. Less than two decades later, India became a net exporter of food, and Ehrlich still hasn’t changed his tune. The Club of Rome warned that, even under optimistic land-use scenarios, we’d face “desperate land shortages” by the year 2000. Spoiler alert: None of this happened either.

The specter of resource depletion was also solved by human ingenuity. Though the Club of Rome’s computer models may have looked fancy, they completely overlooked the magic of the price mechanism. When a resource becomes temporarily scarce and thus more expensive, the invisible hand prompts mining companies to dig deeper and find new reserves, encourages manufacturers to shift to more cost-effective alternatives serving the same purpose, and persuades consumers to switch to different products. All three of these responses occur simultaneously. Of all the predictions about resource depletion since the 1970s, not a single one has materialized. In fact, resources have grown more abundant, even as the global population has increased. In their book Superabundance, Gale Pooley and Marian L. Tupy argue, somewhat counterintuitively, that resources actually become more abundant with each percentage increase in population. The “ultimate resource” in our universe, and the only one that truly matters, as economist Julian Simon asserted, is human ingenuity. Ideas, after all, are inexhaustible.

A similar story can be told about environmental pollution. Instead of driving less, we banned lead in gasoline. Rather than shutting down industrial plants or having fewer babies, we installed scrubbers and filters on chimneys to capture soot and sulfur emissions. One of the most remarkable achievements in environmental policy was the 1987 Montreal Protocol, which phased out the chlorofluorocarbons responsible for depleting the ozone layer. While people continued to use aerosol sprays, companies switched to alternative substances that provide the same function—such as pressurizing aerosol cans—without harming the ozone layer.

Far from anticipating these technological developments, many catastrophists in the 1970s had expressly warned against relying on techno-fixes. As the authors of Limits to Growth cautioned: “Faith in technology as the ultimate solution to all problems can divert our attention from the most fundamental problem—the problem of growth in a finite system and prevent us from taking effective action to solve it.”

The problem was not so much that prophets like Paul Ehrlich were overly pessimistic, as Jason Crawford writes. Pollution and food scarcity were genuine and urgent issues, and they would have spiraled out of control if left unaddressed. But rather than rallying people to take action, Ehrlich and the Club of Rome mostly took a defeatist stance, either suggesting remedies that were worse than the disease or standing in the way of real solutions. Instead of the false dichotomy between optimism and pessimism, Crawford calls for “solutionism.”

A New Generation of Degrowthers

The dark prophecies of the 1970s are not just instructive as yet another chapter in the long and embarrassing history of experts failing to predict the future. As you may have heard, we are currently threatened by a novel ecological disaster. When the Club of Rome was founded, global warming was not high on the agenda yet. Limits to Growth only briefly mentions the “greenhouse effect,” and Ehrlich was still uncertain whether human industrial activity would end up cooling or warming on planet. Regardless, true to his style, he forecasted disaster.

Just as in the dark ’70s, a generation of new doom-mongers has arrived on the scene, with a message that is virtually identical: We are heading for disaster unless we curb economic growth. If anything, the latter-day critics are more radical than their predecessors. Timid warnings about “limiting” growth have been overtaken by outright calls for degrowth, which means the wholesale reduction of economic or industrial output. Bizarrely, most of these advocates of mass impoverishment call themselves progressives—a real misnomer if there ever was one.

In his book Less Is More, the anthropologist Jason Hickel contends that only degrowth can save the planet. Nature imposes hard limits on humanity, which we are ignoring at our peril. In Hickel’s generous reckoning, poorer nations are still permitted to grow a bit to alleviate the most extreme forms of poverty, but wealthier countries must dial back their current levels of prosperity. Just like the Club of Rome, Hickel compares growth to a “cancer” and warns against the false allure of technological innovation, which he likens to the “Get out of jail free” card in Monopoly.

In 2023, the prophets of degrowth convened in the buildings of the European Parliament in Brussels for the Beyond Degrowth conference. With more than 7,000 participants, it marked the largest gathering ever held in these venues (though fortunately not organized by the European Commission itself). The concept of degrowth has gained significant traction within the climate movement, with iconic activists like Greta Thunberg chiding world leaders about their “fairy tales of eternal economic growth.”

To date, no mainstream political party has officially endorsed degrowth, as most recognize that doing so would amount to political suicide. Still, it would be a mistake to dismiss the movement as fringe. The UN’s Intergovernmental Panel on Climate Change (IPCC), in its most recent report, references degrowth dozens of times, often in a favorable light. Many political parties, particularly green and left-leaning ones, have adopted what could be termed “degrowth light.” While they do not entirely abandon the pursuit of economic growth, they are advocating for significant reductions in energy consumption through efficiency measures and energy conservation. Even French President Emmanuel Macron and the EU’s climate czar Frans Timmermans now mouth pieties like, “The best energy is the energy not consumed” (a meme that, unsurprisingly, goes all the way back to the 1970s). In their climate action plans, many Western governments and scientific institutions increasingly rely on substantial cuts to final energy consumption. The mindset of degrowth is starting to catch on.

A Self-Fulfilling Prophecy

These intellectual heirs of the Club of Rome have learned nothing at all. Growth is not the problem but the solution to our environmental problems. If we want to reduce CO2 emissions to zero, we need technological innovation and massive infrastructure projects. For every useful application of fossil fuels, we need to come up with a low-carbon alternative. By continuing to innovate and grow, we can discover ways to decouple economic growth from carbon emissions. While it may seem intuitive to halt growth to curb emissions, as the embryologist Lewis Wolpert once said: “I would almost contend that if something fits in with common sense it almost certainly isn’t science.” By contrast, if we curb economic growth, we will lock in our current and relatively dirty technologies with no hope of ever reaching net-zero emissions (except by going extinct). Consider the spring of 2020, when the pandemic brought the global economy to a near standstill. People were working from their homes, millions of flights got canceled, global tourism was virtually suspended, and cars sat idle in garages. Yet, this involuntary experiment in degrowth resulted in a mere 7 percent reduction in global emissions. Significant, but still quite disappointing given all the hardships the world experienced,  and which nobody would want to live through again.

Imagine if we had heeded the warnings of the Club of Rome 50 years ago and curbed economic growth. In doing so, we would never have witnessed the development of dirt-cheap solar panels, shale gas, lithium-ion batteries, or innovative nuclear reactors. These technologies, which represent our best hope for combating climate change, were either invented or significantly improved in the past five decades. The same principle applies to agriculture. Had we relied solely on 1970s agricultural technology—without the advancements of the Green Revolution or genetic modification—rainforests would be decimated, and millions would still face starvation.

If anything, calls for degrowth to save the planet threaten to become a self-fulfilling prophecy, the more famous cousin of the self-defeating prophecy. If our politicians are ever stupid enough to halt economic growth, we will hamstring our ability to tackle any challenges, including climate change. In a stagnant economy, there would be no new inventions or clever fixes to reduce emissions, capture already emitted CO2, or artificially tweak the global temperature. Not only would we be stuck with our current and relatively dirty technologies, but we would become more vulnerable to the harmful effects of climate variability, whether natural or man-made. The “remedy” of degrowth would be worse for humanity than any climate catastrophe it purports to prevent. Thankfully, our grandparents didn’t pay heed to the Club of Rome in the 1970s, and we owe it to our grandchildren to ignore the degrowthers today.

Blog Post | Economic Freedom

Milei Midterms: An Update on Argentina | Podcast Highlights

Chelsea Follett interviews Marcos Falcone about Milei’s recent electoral success and the economic reforms he might now pursue.

Listen to the podcast or read the full transcript here.

Joining me today is my colleague Marcos Falcone, a policy analyst focusing on Latin America at the Cato Institute’s Center for Global Liberty and Prosperity. He joins the podcast today to discuss the dramatic recent election win of President Javier Milei, who has led his party to a landslide victory in Argentina.

Let’s start with a bit of a history lesson. Argentina has a long history that has not always been a history of progress. Could you walk us through some of that background?

Argentina is one of very few countries in the world, and perhaps the only one, to have gone from being a developed country to a developing country. During the late 19th and early 20th centuries, Argentina was among the richest economies in the world. It was second to the US in terms of the net number of immigrants received. It also had extremely low taxes, low public spending, and very few regulations.

But, of course, international ideological trends also affected Argentina. Nationalism, corporatism, and fascism began to rise in popularity, Juan Domingo Perón came to power in 1946, and Argentina started to diverge from the rest of the world. Whereas much of the world opened up to trade during those years, Argentina became a highly closed, protectionist economy and missed out on all the benefits of trade that increased dramatically after the end of the Second World War.

When Argentina became a closed economy, special interests began to emerge, including trade unions and crony capitalists, who depended on Argentina remaining a closed economy, which in turn made it harder to re-liberalize Argentina’s economy. Governments couldn’t, for example, lower public spending, because people were counting on it. They couldn’t open borders because industries were dependent on them being closed. They couldn’t deregulate labor relations because of the unions. And so, we started to drift into a declining path.

On a happier note, Argentina also has a very long intellectual tradition of classical liberal thought. Could you tell us about that?

The architect of the Argentinian constitution was a classical liberal called Juan Bautista Alberdi. He was a lawyer, but like many intellectuals of the 19th century he wrote about many things, including economics and moral matters. The constitution he designed, which closely followed the example of the US Constitution, went into effect in 1853. It has suffered changes, but really no major changes were implemented until the mid-20th century. So, for almost 100 years, Argentina retained this very classical liberal constitution that greatly benefited the country.

Liberty was also at the forefront of Argentina’s politics and culture. At the end of the 19th century, both the ruling elite and the opposition had classical liberal ideas. The socialists, for example, were very much against protectionism and the creation of a central bank, because they thought it would be bad for workers. However, as fascism and communism began to rise in popularity, this classical liberal environment started to fade away, to the point that we had a Supreme Court that basically allowed the military to seize power in 1930. From that point, it would be over 50 years before Argentina had a fully democratic regime once again.

Still, even during the 20th century, Argentina had a very strong classical liberal tradition. For example, Alberto Benegas Lynch, who is a Cato adjunct scholar, founded a university called ESEADE, where classical liberal thought was spread. We saw the founding of various think tanks in the 1980s and 1990s within the classical liberal tradition, such as my previous employer, Fundación Libertad. We began to rebuild the classical liberal culture that had been lost in Argentina for so long, which also contributed to the rise of Javier Milei, who started out speaking at forums at classical liberal think tanks. I actually met him over 10 years ago.

So, Argentina initially had a strong classical liberal tradition, which it lost for a while but has now regained. And that’s one of the reasons why I’m actually optimistic about the future of the country.

Let’s talk about Milei’s victory. Walk us through what was going on going up to the election and the election itself, and why that outcome took so many people by surprise.

Javier Milei won the presidency in 2023, when many people thought that was impossible. Politicians in other parties actually thought that they were taking advantage of Milei’s presence because he would take votes away from their opposition. But we have to understand the context of Argentina to understand why Milei became popular. In 2023, Argentina had an annual inflation of over 200 percent, on the verge of hyperinflation. And the country hadn’t grown in about a decade.

Everyone who wanted to do business in Argentina knew that this was next to impossible because of how regulated the economy was, and there were also unbearable situations in daily life. For example, rent control was so stringent that many landlords decided not to rent their places, and this caused prices to go up. Ryan Bourne and I interviewed one person who told us that back in 2023, it was so expensive to find a place to live that it could be cheaper to live in a hotel.

So Argentina had been trying interventionist policies for a long time, and they were not yielding good results, and Javier Milei arrives, wielding a chainsaw, saying, “we need to cut spending, we need to slash public spending, we need to lower taxes, we need to deregulate, we need to open up the economy, and we need to dollarize.” And after he wins the presidency, so many people say, “A libertarian can’t last long into office. He will have to resign after a month if he tries to do what he says.” And well, Milei has been president for almost two years now, and many of the radical reforms that he announced have not caused any sort of upheaval.

I think that the most important reform was balancing the budget. Argentina had a 200 percent annual inflation rate because it was running deficits, and nobody trusted Argentina to pay back its debt, so all the government could do was print money. In just one month after taking office, Milei had balanced the budget—something everyone else had said was impossible. Ten days into his presidency, Milei repealed the rent control laws. One year after that decision went into effect, we saw prices going down in real terms by about 30 percent. We saw the supply of apartments triple in the city of Buenos Aires.

During the 2025 midterm election a couple of weeks ago, there was some pessimism that maybe the Peronists were going to win. Many people, including political analysts, were saying that Milei’s changes were so profound that people would not tolerate them, and this fueled a run against the peso. But Milei won over 40 percent of the vote, and this is bringing a new wave of optimism to Argentina because, since Milei previously only had about 15 percent of seats, there were many reforms that he couldn’t make. Now, while Milei still doesn’t have a majority, he needs fewer alliances to pass the reforms that he wants.

Let’s talk about some of those policies.

It seems like the priorities of the Milei administration will be to pass tax reform, social security reform, and labor reform.

In Argentina, taxes are not just high, but also very complicated and superimposing, meaning you have taxes on taxes. To give you an example, the last Doing Business report by the World Bank, which came out in 2020, said that a business in Argentina that paid all of the taxes it was legally required to pay would end up paying 106 percent of its income. That means you’d be better off not doing any business at all. So, you can imagine how complicated the tax system is in Argentina, because obviously, businesses can’t pay 106 percent of their income. The Milei administration could only make very limited changes up to this point because, constitutionally, he needs Congress to legislate over tax matters.

Argentina also has a very high degree of informality in its labor market because it’s very expensive to hire employees legally, and it can be even more expensive to let them go because of litigation. Businesses, particularly small and medium enterprises, are constantly trying to avoid litigation because they know, due to the way that the judicial system is set up, if they face a lawsuit by a former employee, they’re going to lose. This needs to stop, and the Milei administration knows this and is going to push for labor reform.

When it comes to social security, Argentina has the common problem of an aging population. We have the typical Ponzi scheme, where if the base keeps growing, then there’s no issue, but if the population pyramid is no longer a pyramid, there’s likely not going to be enough people in the future to pay for those who are paying taxes today. Now, this is aggravated in Argentina’s case because of populist policies. For example, beginning in the 21st century, over a million pensioners were integrated into the system without having made any payments to social security beforehand at all. We’ve also had an increasing amount of fraud over the past two decades. It’s statistically impossible to have as many disabled people as Argentina seems to have. We see towns in Argentina in backward provinces where maybe 50 percent of all people are cashing in a disability payment. Those are the kind of things that the Milei administration will try to tackle.

I would also like to see more far-reaching trade liberalization and dollarization, because Argentina will eventually have another left-wing or Peronist administration. We’re in a democracy, governments change, and we haven’t really seen that the Peronist economic agenda is becoming more reasonable. So, we need to protect people, and particularly the assets of the people, and the best way to do that is dollarization.

Let’s talk a little bit more about dollarization because this is such an important policy issue in Argentina.

Milei promised to dollarize the economy back in 2023 in the context of near hyperinflation. Now, while annual inflation is still over 30 percent, the problem has become less salient, and it seems as though maybe you don’t need to dollarize if you can just get inflation back under control. But we have this problem, which we just saw before the recent elections, where whenever there’s uncertainty about the future in Argentina, you have a run against the peso, and people rush to buy dollars. This basically stops all economic activity because people don’t want to make decisions amid all the uncertainty. And what ends up happening is that the people who benefit are those with dollars, who are usually the richest ones, and the poorest suffer the most because they have the national currency that is constantly losing value. And in many cases, the people who have dollars don’t even invest them; they just keep the physical dollar bills, so this also takes money out of the financial system.

Argentines don’t need to live like this. We have seen examples of successful dollarization processes that have defended people against populist governments. Ecuador dollarized its economy 25 years ago, and after dollarizing, it had a left-wing administration led by Rafael Correa that lasted for ten years. Many people thought he could have been another Chavez. He wanted to turn Ecuador upside down and implement all sorts of interventionist policies. But the dollar was more popular than he was, and he couldn’t de-dollarize, so even though he did a lot of damage to the Ecuadorian economy, dollarization protected the value of their assets.

What are some of the potential implications for the broader region? Do you think that this renaissance of classical liberal or libertarian policy could catch on throughout Latin America?

I think Argentina could become an example that other countries in Latin America can imitate. In recent years, we have had different administrations in countries like Brazil, Chile, and Colombia that have gone left-wing, and in many cases, in more extreme ways than in the past. And in Latin America, presidents who are not left-wing tend to be more conservative or nationalistic. So, Argentina is relatively alone in the region, but I hope that Milei becomes a sort of beacon that can help libertarian politicians in other countries rise to prominence.

We are seeing that in Chile, where even though the most popular figure right now is a communist, you also have a libertarian candidate who might go to the runoff against the communist and potentially win. And that could undo a lot of the bad policies that Chile has recently engaged in.

The Human Progress Podcast | Ep. 69

Marcos Falcone: Milei’s Midterms and an Update on Argentina

Marcos Falcone joins Chelsea Follett to discuss Milei’s recent electoral success and the economic reforms he might now pursue.

Marcos Falcone joins Chelsea Follett to discuss Milei’s recent electoral success and the economic reforms he might now pursue.

Go To Episode

Banco Bilbao Vizcaya Argentaria | Charity & Aid

1.1 Million Mexicans Lifted Out of Poverty Thanks to Remittances

“During the first nine months of 2025, remittances to Mexico totaled 45,681 million, 5.5% less than the 48,360 million received during the same period in 2024.

Despite this decrease, remittances increased in several states in the central-southern region during the first nine months of the year, notably Chiapas (+1.2%), Oaxaca (+2.0%), Puebla (+1.9%), Guerrero (+4.2%), Veracruz (+0.9%), and Morelos (+1.3%).

1.1 million people in Mexico have been lifted out of multidimensional poverty thanks to remittance transfers. If remittance income is not included in the 2024 measurement, the population living in poverty in Mexico would increase from 38.5 million to 39.6 million people.”

From Banco Bilbao Vizcaya Argentaria.

Blog Post | Pollution

From Waste to Wealth: the Alchemy of Innovation

Environmental challenges can be transformed into economic opportunities.

Summary: Scientists and engineers are finding ways to turn pollution and waste into valuable resources. From recovering fertilizer from toxic lakes to creating biodegradable packaging from farm residues, innovation is transforming environmental problems into opportunities for growth. By reimagining waste as a resource, we can make the planet cleaner while fueling new industries and jobs.


Every summer, toxic algae blooms turn Lake Erie and other US lakes into a green soup, threatening drinking water for millions. Every year, American farmers burn millions of pounds of grain stalks after harvest. And every day, Americans throw away enough packing peanuts to fill an Olympic swimming pool. What if I told you that each of these waste streams could become valuable resources—and that the solutions are emerging from university laboratories right now?

We stand at a unique moment in history. For the first time, we possess the scientific tools to transform our most pressing environmental challenges into economic opportunities. The numbers tell a compelling story. According to the World Bank’s “What a Waste 2.0” report, global waste is projected to rise by 70 percent, from 2.01 billion tons today to 3.4 billion tons in 2050. Yet, the circular economy, or using waste productively to create wealth, could unlock $4.5 trillion in economic benefits by 2030. The question isn’t whether we can afford to innovate—it’s whether we can afford not to.

Three Breakthrough Innovations from North Dakota

The convergence of nanotechnology, materials science, and biotechnology has created unprecedented possibilities for environmental remediation. In a laboratory at North Dakota State University, my research team is developing three innovations that exemplify this waste-to-wealth transformation:

  1. Calcium peroxide nanoparticles that absorb phosphates from polluted lakes and convert them into sustainable fertilizer
  2. Flax-fiber composites that transform agricultural waste into biodegradable packaging materials
  3. Starch-based foam alternatives that replace petroleum-based packing peanuts with compostable materials

These aren’t pie-in-the-sky concepts. They’re practical solutions that could scale from our Fargo lab benches to global implementation within a decade. Here’s how each one works—and why they matter.

Turning Lake Poison into Farm Food

Over 500 “dead zones” now plague our planet’s bodies of water, with the number doubling every decade since the 1960s. These oxygen-depleted areas, caused primarily by phosphate runoff from agriculture, cost the United States $2.4 billion annually in economic losses. The 2014 Toledo water crisis, which left half a million people without access to drinking water for three days, was just a preview of what may come unless we act.

Here’s where nanotechnology can change the game. At our NDSU lab, we’re developing calcium peroxide nanoparticles—imagine particles 5,000-times smaller than the width of a human hair—that act as molecular sponges for phosphate pollution. When deployed in eutrophic (nutrient-rich) lakes, these nanoparticles serve a dual purpose that borders on alchemy: First, they absorb phosphates from the water with an efficiency 500-times greater than conventional materials; second, they slowly release oxygen over 30 days, breathing life back into suffocating bodies of water.

But here’s the truly exquisite part: Those absorbed phosphates don’t disappear. Our research team harvests them to create sustainable fertilizer. Consider the irony—the very phosphates that are killing our lakes came from fertilizer runoff, and now we’re capturing them to make new fertilizer. It’s the circular economy in its purest form.

The timing couldn’t be more perfect. The global phosphate fertilizer market, currently valued at $72 billion, is facing a sustainability crisis. Morocco controls 70 percent of the world’s phosphate rock reserves, and at current extraction rates, most of these reserves will be depleted within a century. By recovering phosphates from water pollution, we’re not just cleaning lakes, we’re securing agriculture’s future. Our preliminary calculations suggest that phosphate recovery from US agricultural runoff alone could replace 15 percent of imported phosphate fertilizer, saving farmers billions while restoring water quality.

From Farm Waste to Amazon Packages

The second innovation transforms an agricultural nuisance into packaging gold. North Dakota grows 90,000 acres of flax annually, primarily for the valuable oil in its seeds. But after harvest, millions of pounds of stalks are typically burned or buried, a waste of remarkably strong natural fibers that have been used for over 30,000 years for textiles, food, paper, and medicine.

At our NDSU lab, we’re extracting these fibers and mixing them with biodegradable polymer matrices to create packaging materials that rival petroleum-based plastics in performance while completely biodegrading in three to six months. The resulting composite materials achieve tensile strengths of 50–70 megapascals—stronger than many conventional plastics—using 35 percent less energy to produce.

The market is hungry for such solutions. The biodegradable packaging sector is experiencing rapid growth, projected to reach $922 billion by 2034. More important, consumers are voting with their wallets: 82 percent say they’ll pay premiums for sustainable packaging, and 39 percent have already switched brands for better environmental practices. Major corporations aren’t waiting. Dell already uses mushroom-based packaging grown on agricultural waste, while IKEA has committed millions of dollars to eliminate polystyrene entirely.

North Dakota sits on a gold mine of opportunity. The state’s two million acres of various crops produce enormous volumes of agricultural residue. By viewing these stalks, husks, and shells not as waste but as industrial feedstock, North Dakota could become a hub for sustainable packaging materials. A single processing facility could create 200 rural jobs while generating $50 million in annual revenue from materials currently worth nothing.

Replacing Satan’s Snowflakes

The third innovation addresses what some environmentalists refer to as “Satan’s snowflakes”—namely, those infuriating polystyrene packing peanuts that seem to multiply in your garage and never decompose. Americans generate enough polystyrene waste to circle the Earth in a chain of coffee cups every four months. This material persists for 500 to one million years, breaking into microplastics that contaminate our food chain.

In our NDSU lab, we’re developing starch-based foam alternatives using corn, wheat, and potatoes, all crops that North Dakota grows in abundance. These “bio-peanuts” dissolve completely in water, compost within 90 days, and require just 12 percent of the energy needed to produce traditional polystyrene. They even eliminate the static cling that makes unpacking electronics feel like wrestling an electric eel.

The economics are compelling. Companies such as electronics retailer Crutchfield report saving $70,000 to $120,000 annually in freight costs after switching to lighter, bio-based packing materials. With 11 states and 250 cities already banning polystyrene foam, and the European Union implementing strict regulations on single-use plastics, the market for alternatives isn’t only growing, it’s becoming mandatory.

Perhaps the most profound impact is psychological. Every online purchase delivered with biodegradable packing materials sends a message: Modern conveniences can be maintained without mortgaging the environment. While a small victory, such progress is building momentum for larger, more significant changes.

The Scaling Potential: From Lab to Global Impact

The opportunity is enormous: If just 10 percent of US agricultural waste were converted to packaging materials, it would replace 33 million tons of petroleum-based plastics annually. If our phosphate recovery technology were deployed in the 100 most-polluted lakes globally, it could recover enough phosphorus to fertilize five million acres of farmland while restoring recreational value worth $10 billion.

These aren’t distant possibilities—our NDSU innovations are progressing through the typical stages: proof of concept, pilot testing, demonstrations, and commercialization. We’re currently in pilot testing, with plans for field demonstrations next year. Industry partners have expressed strong interest, particularly from agricultural cooperatives seeking value-added opportunities for crop residues.

Innovation Beats Despair: Lessons from Environmental History

Some critics might ask, “Aren’t these solutions just Band-Aids on the gaping wound of industrial civilization?” Such a question, however, misses the profound lesson of environmental history. Every major pollution crisis we’ve faced, from London’s killer smog to acid rain and the ozone hole, seemed insurmountable until human ingenuity proved otherwise.

Consider the track record. Since 1970, the United States has reduced major air pollutants by 78 percent while increasing gross domestic product by 321 percent. The Montreal Protocol has eliminated 99 percent of ozone-depleting substances, saving approximately two million people from skin cancer each year. Acid rain, once predicted to cost $6 billion annually to address, was solved for less than $2 billion per year. These victories weren’t achieved by abandoning modern life but by making modernity cleaner and more efficient.

The same patterns are emerging in clean technology. Solar panel costs have plummeted 90 percent in the past decade. Renewable energy is often among the lowest-cost power sources, especially when comparing marginal generation costs. When accounting for storage or backup needs, however, total system costs can vary by region and grid mix. Battery prices have decreased by 97 percent over the past 30 years. Each follows Wright’s Law—costs decline predictably as production scales. Our NDSU waste-to-resource innovations will follow similar trajectories.

The investment community recognizes this potential. Clean technology attracted $1.8 trillion in investments globally in 2023, surpassing fossil fuel investments for the first time. The bioeconomy, currently valued at $4 trillion, is projected to reach $30 trillion by 2050. These aren’t charitable donations, but rather hard-nosed bets on profitable technologies that happen to benefit the planet.

From Lab Bench to Marketplace

Numerous university spin-offs have traveled the well-worn path from laboratory to marketplace. Companies such as Membrion (ceramic membranes developed at the University of Washington) and Integricote (nanocoatings developed at the University of Houston) demonstrate that academic innovations can achieve commercial success while addressing environmental challenges.

The Optimistic Imperative

The waste crises facing our generation are real and urgent—but so is our capacity to transform them into opportunities for prosperity. The toxic algae choking our lakes could become tomorrow’s sustainable fertilizer. The agricultural waste burning in our fields could become the packaging protecting tomorrow’s e-commerce deliveries. The petroleum-based foams polluting our oceans could be replaced by materials that harmlessly dissolve back into the earth.

This transformation, however, won’t happen automatically. It requires continued investment in research, supportive policies that incentivize innovation over incineration, and entrepreneurs willing to scale laboratory successes into industrial realities. The trajectory is clear: Waste is becoming wealth, pollution is becoming profit, and environmental restoration is becoming economic opportunity.

From my lab bench in Fargo, I see a future in which every environmental challenge sparks a thousand innovative solutions, every waste stream becomes a value stream, and the same human ingenuity that created these problems engineers their solutions. That’s human progress at its finest.