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The Circular Economy is Actually a Recipe for Social Inequality, Not Sustainability

Posted on May 22, 2025 By Dante No Comments on The Circular Economy is Actually a Recipe for Social Inequality, Not Sustainability

As the world continues to grapple with the challenges of climate change, environmental degradation, and resource depletion, the circular economy has emerged as a buzzword in the quest for sustainability. Proponents of the circular economy claim that it is a revolutionary approach to production and consumption, one that can significantly reduce waste, emissions, and the environmental impact of human activity. But is this really the case, or is the circular economy just a thinly veiled attempt to maintain the status quo of capitalist exploitation?

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At its core, the circular economy is based on the idea of keeping resources in use for as long as possible, extracting the maximum value from them, and recovering and regenerating materials at the end of their service life. Sounds good, right? But scratch beneath the surface and you’ll find that this approach is often geared towards maintaining the existing power structures of the capitalist system, rather than truly promoting social and environmental justice.

One of the key principles of the circular economy is the concept of “product-as-a-service,” where companies sell not the product itself, but the use of the product. This approach is often touted as a way to reduce waste and promote sustainability, but it can have a profoundly unequal impact on society. Those who can afford to purchase the use of products, often at a premium, are able to maintain their consumption patterns, while those who cannot afford to do so are left behind. This creates a situation where the rich get richer, and the poor get poorer, all in the name of sustainability.

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Furthermore, the circular economy is often based on the idea of “closed-loop” production, where materials are continuously cycled back into production with minimal waste. Sounds like a utopian dream, but in reality, it often relies on the exploitation of marginalized communities and the environment. Take, for example, the recycling industry, which has been shown to perpetuate environmental racism, with communities of color and low-income communities disproportionately bearing the brunt of pollution and health risks associated with recycling.

Another issue with the circular economy is that it often relies on the concept of “service-based” production, where companies provide ongoing maintenance and support for products, rather than selling them outright. While this may seem like a more sustainable approach, it can actually perpetuate a culture of disposability, where products are constantly being upgraded and replaced, rather than repaired and reused. This can lead to a situation where products are designed to be obsolete, rather than durable, further exacerbating the problem of waste.

So, is the circular economy a recipe for social inequality, rather than sustainability? While its intentions may be good, the reality is that it can perpetuate the same systems of exploitation and inequality that we’re trying to address. It’s time to rethink the circular economy, to move beyond the rhetoric of sustainability and towards a truly equitable and just approach to production and consumption. One that prioritizes people and the planet, rather than profit and power.

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