Introduction to the Theory of Fear Industries and Its Implications for United Nations SDGs 1, 2 and 16

Abstract

We are living in a fast-changing world. Climate change and environmental destruction have resulted in extreme weather conditions, natural disasters, and human-wildlife interactions, leading to a short-term fear industry. Simultaneously, human defense expenditures (military and police) have increased in response to the increased demand for permanent military and police forces, fueling the growth of long-term fear industries. By fear industry, we mean the creation of an industry as a result of actual or perceived fear, in the absence of which the industry would not have been created. Unfortunately, classical, neo-classical, and modern economic theories have failed to explain fear industries. This chapter fills this gap by developing and defining the fear industry’s creation and death theory. The theory has both sustainable economic and environmental implications. This theory can help allocate resources effectively, maximize economic welfare, and save from potential recessions or economic collapse in an era of the fear industry. Therefore, understanding and preparing for short- and long-term fear industries’ economic and environmental implications can speed up universal progress toward the UN’s 2030 Sustainable Development Goals (SDGs). In particular, SDG 1 (poverty elimination), SDG 2 (zero hunger), SDG 3 (climate action), and SDG 16 (peace and justice).