Category Archives: Economics

Is The World Running Out Of Resources?

Matt Ridley says “no”:

I have lived among both tribes. I studied various forms of ecology in an academic setting for seven years and then worked at the Economist magazine for eight years. When I was an ecologist (in the academic sense of the word, not the political one, though I also had antinuclear stickers on my car), I very much espoused the carrying-capacity viewpoint—that there were limits to growth. I nowadays lean to the view that there are no limits because we can invent new ways of doing more with less.

This disagreement goes to the heart of many current political issues and explains much about why people disagree about environmental policy. In the climate debate, for example, pessimists see a limit to the atmosphere’s capacity to cope with extra carbon dioxide without rapid warming. So a continuing increase in emissions if economic growth continues will eventually accelerate warming to dangerous rates. But optimists see economic growth leading to technological change that would result in the use of lower-carbon energy. That would allow warming to level off long before it does much harm.

I made a similar point about nine years ago:

The only hope for the planet is to get more of it to operate on the principles of the market, and individual choice. There are two competing approaches. The first is responding hysterically to problems that won’t occur for many decades (Kyoto being a prime example) which will reduce current wealth to the point that if and when those problems actually occur, we won’t have the financial wherewithal to be able to deal with them. The second is to use those resources wisely, per their most productive uses (i.e., responding to market pricing) to create the wealth necessary to create new resources.

There are many things wrong with our current approach to such things (e.g., the fishery problem), but the nostrums proposed by most “environmentalists” (who tend to be socialists and command economists in green clothing, even if many don’t recognize that) would make things worse, not better. Headlines like that in the Guardian article, implying that resources are a static quantity, of which we’ve already used two thirds, are just the kinds of misinformation that lead to flawed policy decisions, and reduction of wealth, and ultimately reductions of “resources.”

The problem is that the environmental movement has been hijacked by socialists and others completely ignorant of technology and economics.

Oligarchy In The 21st Century

Shocker: It’s not rich conservatives who run the world:

There you have it: A wealthy Democratic donor admits he funds candidates to improve his bottom line. And yet I hear from the Senate floor no denunciations of his attempts to buy American democracy, no labeling of him as un-American. I have not received a piece of direct mail soliciting donations to fight David L. Cohen’s hijacking of the political process, nor do I wake up every day to investigations of the Cohen political and charitable network. Why?

It’s a rhetorical question, of course.

[Monday-morning update]

Related thoughts from Ed Driscoll.

Red-Pill Economics

Welcome to the Paradise of the Real:

The Nation yesterday published a hilariously illiterate essay by Raúl Carrillo, who is a graduate student at Columbia, a Harvard graduate, and an organizer of something called the Modern Money Network, “an interdisciplinary educational initiative for understanding money, finance, law, and the economy.” All three of those institutions should be embarrassed. Mr. Carrillo is the sort of man who thinks that 40 pieces of candy can be divided and recombined in such a way as to arrive at a number greater than 40. His essay, “Your Government Owes You a Job,” argues that the federal government should create a guaranteed-job program, “becoming our employer of last resort.” Mr. Carrillo’s middle-school-quality prose must be read to be appreciated — “Would jobs for all skyrocket wages and prices, spurring inflation? Such unfounded belief holds the jobless hostage to hysteria” — but his thinking is positively elementary. It does, however, almost perfectly sum up the symbolism-over-literal-substance progressive worldview: “You need dollars to eat,” he writes, “and unless you steal the dollars, you generally have to earn them.”

But you do not need dollars to eat. You need food to eat. Experiment: Spend six months locked in room with nothing other than a very large pile of dollars; measure subsequent weight loss.

Mr. Carrillo’s intellectual failure is catastrophic, but it is basic to the progressive approach. Mr. Carrillo argues that a guaranteed-job program would “pay for itself,” mitigate deficits, empower women, strengthen communities, liberate us from Walmart and McDonald’s — I half expected him to claim that it would turn a sandwich into a banquet. But the question he never quite gets his head around is: Jobs doing what? Americans in guaranteed government jobs “needn’t construct trains or solar panels,” he writes. Instead, they could be employed in “non-capital intensive” sectors such as “child-care, eldercare, and” — focus in here, kids — “community gardening.” Experiment: Offer for sale at a price of $250 a voucher entitling its bearer to one year’s worth of meals at McDonald’s, one year’s worth of groceries at Walmart, or one year’s worth of produce from your local community garden; compare sales figures.

Read the whole thing.

California’s Bullet-Train Boondoggle

continues to collapse:

A lawyer familiar with the case mocked this argument as amounting to, “Damn the legal niceties, this mean judge is getting in our way.” – See more at: http://calwatchdog.com/2014/04/22/gov-browns-legal-strategy-to-prop-up-bullet-train-faltering/#sthash.Na3IFURm.dpuf

This is a problem that won’t be solved until California gets an intelligent electorate.

The Climate Abolitionists

Chris Hayes is going down a dangerous road:

“It’s a bit tricky to put an exact price tag on how much money all that unexcavated carbon would be worth, but one financial analyst puts the price at somewhere in the ballpark of $20 trillion,” Hayes writes. “So in order to preserve a roughly habitable planet, we somehow need to convince or coerce the world’s most profitable corporations and the nations that partner with them to walk away from $20 trillion of wealth.”

Note the phrase: “convince or coerce.” If persuasion were to fail, coercion — presumably by the federal government or some very, very powerful entity — could be pretty rough. Certainly by writing that the “climate justice movement” should be known as the “new abolitionism,” Hayes makes an uneasy comparison to a 19th century conflict over slavery that was settled only by a huge and costly war — a real war, not a metaphorical one. Is that how environmentalists plan to save the planet from warming?

They have to destroy humanity to save the planet.

The Pacific Salmon Are Back

…and of course, the environmentalists hate it:

The point deserves emphasis. The advent of higher carbon dioxide levels in the atmosphere has been a great boon for the terrestrial biosphere, accelerating the rate of growth of both wild and domestic plants and thereby expanding the food base supporting humans and land animals of every type. Ignoring this, the carbophobes point to the ocean instead, saying that increased levels of carbon dioxide not exploited by biology could lead to acidification. By making the currently barren oceans fertile, however, mariculture would transform this putative problem into an extraordinary opportunity.

Which is precisely why those demanding restraints on carbon emissions and restrictions on fisheries hate mariculture. They hate it for the same reason those demanding constraints in the name of allegedly limited energy resources hate nuclear power. They hate it because it solves a problem they need unsolved.

I hope this means a lot of cheap fresh wild salmon in the stores this summer.

Base Camps

Derek Webber writes that in order to advance into the solar system NASA needs to take some lessons from Everest climbers.

Not to mention be willing to lose folks occasionally.

[Update a few minutes later]

Jeff Foust notes that there seems to be an emerging consensus that Mars is the goal, though none on how to do it.

Meanwhile, John Strickland says we need an integrated approach, with robots and humans. to get to Mars. He seems to be focusing on Mars surface water, though. I think we need to trade that with manufacturing propellants at Phobos or Deimos.

My take, as always, is that destinations are less important than capabilities. Put an off-planet space-transportation infrastructure in place, and the entire solar system (including Europa and Enceladus) is opened up to us. But Congress would rather build big rockets.