When Physics Meets Economics
Insights from physicist-economist Erald Kolasi
What if the laws of physics could teach us how to build an economy that actually works with nature instead of against it?
In this episode of Moral Footprint, I spoke with
, physicist, economist and author of The Physics of Capitalism, about why our ecological crisis isn't just about carbon emissions or technological fixes but about an economic system that operates in direct opposition to the physical laws governing life on Earth.Erald brings thermodynamics into the heart of our economic discourse, revealing why capitalism functions as what he calls a "supercharged entroplex" (a system that amplifies disorder in the biosphere by design).
This cuts through the technological optimism and green growth narratives that dominate climate discussions to an ultimately hopeful vision: that understanding the physics of our predicament can guide us toward genuinely sustainable social transformation.
Capitalism is thermodynamically unsustainable by design
Our economic system consumes vast amounts of energy from the natural world, uses a fraction efficiently, then dumps the rest back as waste: greenhouse gases, pollution, and degraded materials. This isn't a bug; it's the feature that drives endless growth on a finite planet.
Climate reductionism misses the bigger picture
Focusing solely on carbon capture and renewable energy whilst maintaining business as usual is like solving the ozone crisis by creating more powerful greenhouse gases. We solved one problem and created another: a pattern that reveals why technological fixes without social change perpetuate the same destructive dynamics.
Economic models ignore ecological tipping points
Mainstream economic models like William Nordhaus's DICE can predict a 10° temperature rise as merely a 20% hit to GDP, when in reality it would mean human extinction. This isn't academic incompetence, it reveals how economic thinking is shaped by those who benefit from the status quo. As Erald puts it, "the real issue isn't economists: it's the capitalists who fund them to say things that benefit their class domination over society."
Energy caps, not GDP targets, should guide post-growth societies
Rather than focusing on degrowth through GDP reduction, Erald proposes biophysical metrics: capping global per capita energy use at 60,000 kilocalories per day (Britain currently uses roughly 70,000; the US uses 180,000). This creates space for the Global South to develop whilst the Global North reduces overconsumption.
Global governance is essential for planetary boundaries
Managing the global biosphere requires coordinated action that transcends national interests. Erald's vision of a "cosmopole": a global legislature chosen by sortition rather than elections would have specific powers over ecological issues whilst leaving taxation and monetary policy to nation-states.
The Four Pillars of Valerism
From Erald’s book, this framework rests on four interconnected principles:
Stabilization: Establishing energy consumption limits (30,000-60,000 kilocalories per capita) actively enforced by government agencies, alongside universal social programmes like employment guarantees, healthcare, education and reduced working hours.
Socialization: The transfer of assets from private to collective ownership (not just nationalisation, but including co-operatives and local public ownership), with the state gaining direct control over key sectors like finance, defence, agriculture, aerospace, energy, education and healthcare.
Modularization: Boosting efficiency by using interchangeable and reusable components across different products and systems, focussing on reusability rather than recycling, and moving from "catalytic specialisation" (wasteful customisation) towards "targeted specialisation."
Localization: Organising production and distribution systems locally to reduce energy consumption from logistics and transportation, moving away from global value chains that segment production across multiple countries primarily to exploit cheap labour.
It’s not about returning to pre-industrial life, but designing a post-capitalist system that works with thermodynamic reality rather than against it. Revolutionary moments in history are unpredictable, but when they arrive, we need coherent visions ready to guide transformation rather than scrambling to improvise solutions.
Ready to go deeper?
Watch our full conversation on YouTube below, or listen via Spotify or Apple.