In 1972, “Limits to Growth” made ground-breaking predictions about the world economy. The authors looked at five variables: current and probable future rates of growth for world population, pollution, industrialization, food production and resource depletion. Their conclusions confronted neo-liberal economics by setting approximate dates when each of the five variables would reach crisis levels and negatively influence the other variables (multiple negative feedback loops for the world economy.) Out of works like “Limits to Growth” emerged “ecological economics.” Ecological economics considers environmental and social costs to a business venture with the goal of achieving a triple bottom line (profitability while providing living wages and good products or services that benefit the community and world at large.) Ecological economics understands that cheap energy is what fuels growth and without growth there can be no debt-based economy (fiat currency.)
Perhaps it is time to abandon neo-liberal economics and embrace an ecological economics that recognizes that we live in an over-populated world of depleted resources and a steadily worsening global environment. However, we also have a constant source of energy from the sun and the cumulative knowledge of hundreds of generations before us.
It may seem counter-intuitive, but the reason oil prices are now falling worldwide is because the entire world economy is going into a deflationary spiral due to the end of really cheap conventional oil. This is the steep downslope that famed geophysicist M. King Hubbert predicted would likely occur roughly 10 years after world peak conventional oil production (in 2005.)
Eric Teegarden
Brier
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