Podcast
by
Gregor Macdonald
Executive Summary
- The transition back to an electricity-centric economy is regressive
- Declining net energy and peak expansion are co-incident
- Change that substitutes labor without providing a higher use for it is deflationary and results in inequality
- Our challenge is to find sustainable work for society
If you have not yet read The Siren Song of the Robot, available free to all readers, please click here to read it first.
Capitalism demands fast gains in productivity. Capitalism seeks revolutionary change. But it’s not clear whether a revolution in machine intelligence leads to a deflationary boom, per Schumpeter, or a deflationary bust.
Writers such as Paul Krugman have perhaps moved too quickly, too easily, to conclude that a massive increase in production from such technology leads sustainably to large growth in GDP without severe consequences. Indeed, in a recent essay responding to Robert Gordon's paper on the end of growth, Krugman takes the view that (positive) returns from technology are just beginning to unfold.
I conclude that Krugman is actually concerned about and open to the possibility that an enormous wave of disruption to manufacturing from robots could produce higher GDP initially and also problems thereafter. What happens to wages in the broader economy?
One does not have to be a Luddite about technology to fear yet another huge new round of wage deflation. The West has already been treated to an era of “cheap, quickly manufactured goods that enhance people’s lives” during the past two decades. And it’s not clear that a flood of goods has necessarily improved well-being.
While I certainly wouldn’t make the curmudgeon's case that electronic devices have reduced well-being, it’s not clear that the I.T. revolution has accomplished much in the way of delivering to consumers cheaper and better quality energy, food, or health care.
Why the Robot Age May Create a Massive Deflationary Bust
PREVIEW by Gregor MacdonaldExecutive Summary
- The transition back to an electricity-centric economy is regressive
- Declining net energy and peak expansion are co-incident
- Change that substitutes labor without providing a higher use for it is deflationary and results in inequality
- Our challenge is to find sustainable work for society
If you have not yet read The Siren Song of the Robot, available free to all readers, please click here to read it first.
Capitalism demands fast gains in productivity. Capitalism seeks revolutionary change. But it’s not clear whether a revolution in machine intelligence leads to a deflationary boom, per Schumpeter, or a deflationary bust.
Writers such as Paul Krugman have perhaps moved too quickly, too easily, to conclude that a massive increase in production from such technology leads sustainably to large growth in GDP without severe consequences. Indeed, in a recent essay responding to Robert Gordon's paper on the end of growth, Krugman takes the view that (positive) returns from technology are just beginning to unfold.
I conclude that Krugman is actually concerned about and open to the possibility that an enormous wave of disruption to manufacturing from robots could produce higher GDP initially and also problems thereafter. What happens to wages in the broader economy?
One does not have to be a Luddite about technology to fear yet another huge new round of wage deflation. The West has already been treated to an era of “cheap, quickly manufactured goods that enhance people’s lives” during the past two decades. And it’s not clear that a flood of goods has necessarily improved well-being.
While I certainly wouldn’t make the curmudgeon's case that electronic devices have reduced well-being, it’s not clear that the I.T. revolution has accomplished much in the way of delivering to consumers cheaper and better quality energy, food, or health care.
by
JW
by
JW
When thinking about switching jobs or making the leap to the agrarian life, it is important to consider the physical, life threatening risks that come with the job. An infographic for the work-related, on-the-job deaths in 2011 for U.S. workers.
http://www.npr.org/blogs/money/2013/01/08/168897140/the-deadliest-jobs-in-america-in-one-graphic
The Deadliest Jobs in America
by JWWhen thinking about switching jobs or making the leap to the agrarian life, it is important to consider the physical, life threatening risks that come with the job. An infographic for the work-related, on-the-job deaths in 2011 for U.S. workers.
http://www.npr.org/blogs/money/2013/01/08/168897140/the-deadliest-jobs-in-america-in-one-graphic
by
JW
by
John Michael Greer
Executive Summary
- Escalating costs of resource extraction and associated pollution are key headwinds on future economic growth
- For the first time in generations, the same limits to growth that handicapped pre-industrial society are reasserting themselves
- Our economic and political leaders are misdiagnosing the root problem, and therefore prescribing the wrong treatments
- Remember stagflation? Get ready to experience it again – with a vengeance
If you have not yet read The Tangled Relationship between Wealth & Money available free to all readers, please click here to read it first.
The forces driving today’s ongoing economic crisis were sketched out decades ago in the pages of the Club of Rome’s epochal 1973 study, The Limits to Growth. Mention that book to most people nowadays, and those who admit they’ve heard of it at all routinely insist that it made false claims about the future.
The irony – and it’s not a small one – is that this simply isn’t true…
A society in this situation can expand its production of goods and services – its 'wealth economy,' in the terms used in Part I – up to the limits of the environment’s ability to provide resources and absorb waste. Once those limits appear in the rearview mirror, though, any further expansion of the wealth economy runs into two insurmountable difficulties…
Slamming Face-First into the Limits to Growth
PREVIEW by John Michael GreerExecutive Summary
- Escalating costs of resource extraction and associated pollution are key headwinds on future economic growth
- For the first time in generations, the same limits to growth that handicapped pre-industrial society are reasserting themselves
- Our economic and political leaders are misdiagnosing the root problem, and therefore prescribing the wrong treatments
- Remember stagflation? Get ready to experience it again – with a vengeance
If you have not yet read The Tangled Relationship between Wealth & Money available free to all readers, please click here to read it first.
The forces driving today’s ongoing economic crisis were sketched out decades ago in the pages of the Club of Rome’s epochal 1973 study, The Limits to Growth. Mention that book to most people nowadays, and those who admit they’ve heard of it at all routinely insist that it made false claims about the future.
The irony – and it’s not a small one – is that this simply isn’t true…
A society in this situation can expand its production of goods and services – its 'wealth economy,' in the terms used in Part I – up to the limits of the environment’s ability to provide resources and absorb waste. Once those limits appear in the rearview mirror, though, any further expansion of the wealth economy runs into two insurmountable difficulties…
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