energy / economy
Posted: Fri Sep 09, 2011 9:21 pm
http://www.theoildrum.com/node/8350#more
The crisis in money is related to the crisis in energy, the environment, and everything else. The difficulty in finding a substitute for oil, for example, is born of economics. Imagine what we could have accomplished if the millions of scientific careers and hundreds of billions of dollars that have been devoted to petroleum and nuclear power over the last fifty years had gone instead into developing "alternative" energy technologies. Imagine if, at the dawn of the environmental movement in the 1960s, we had launched a global scientific effort exceeding that devoted to the space race to create a pollution-free society. It did not happen, and with good reason: there was no money in it (given the kind of money system we have had). Compared to the technologies of Big Energy, there is little profit to be made in the alternatives. The alternatives are not conducive to economic growth, and will never flourish in a money system that compels and depends on growth.
Sunlight, wind, conservation, geothermal energy, and more controversial technologies like cold fusion, Bedini/Bearden devices, and so forth share an important characteristic in common. Their energy source is more or less ubiquitous, so that users needn't be dependent on an ongoing supply of scarce fuel. They are, in an important sense, abundant. This feature puts them at odds with our money system, which depends on the creation and maintenance of scarcity. To profit from something, say energy, it must be scarce: high-tech pharmaceuticals, for example, rather than ubiquitous weeds and folk medicine.
The same is true of information; hence the strenuous efforts of music, book, and film publishers to create artificial scarcity in digital content through copy protections and intellectual property law. They are fighting a losing battle: when the marginal cost of production for any product approaches zero, the natural price point tends toward zero as well. The first copy of Microsoft Word costs hundreds of millions of dollars to produce, but each subsequent copy costs virtually nothing.
The crisis in money is related to the crisis in energy, the environment, and everything else. The difficulty in finding a substitute for oil, for example, is born of economics. Imagine what we could have accomplished if the millions of scientific careers and hundreds of billions of dollars that have been devoted to petroleum and nuclear power over the last fifty years had gone instead into developing "alternative" energy technologies. Imagine if, at the dawn of the environmental movement in the 1960s, we had launched a global scientific effort exceeding that devoted to the space race to create a pollution-free society. It did not happen, and with good reason: there was no money in it (given the kind of money system we have had). Compared to the technologies of Big Energy, there is little profit to be made in the alternatives. The alternatives are not conducive to economic growth, and will never flourish in a money system that compels and depends on growth.
Sunlight, wind, conservation, geothermal energy, and more controversial technologies like cold fusion, Bedini/Bearden devices, and so forth share an important characteristic in common. Their energy source is more or less ubiquitous, so that users needn't be dependent on an ongoing supply of scarce fuel. They are, in an important sense, abundant. This feature puts them at odds with our money system, which depends on the creation and maintenance of scarcity. To profit from something, say energy, it must be scarce: high-tech pharmaceuticals, for example, rather than ubiquitous weeds and folk medicine.
The same is true of information; hence the strenuous efforts of music, book, and film publishers to create artificial scarcity in digital content through copy protections and intellectual property law. They are fighting a losing battle: when the marginal cost of production for any product approaches zero, the natural price point tends toward zero as well. The first copy of Microsoft Word costs hundreds of millions of dollars to produce, but each subsequent copy costs virtually nothing.