It is easy to see how rational people can conclude that the only hope of preserving mass prosperity in America comes from transfers and subsidies. If we add to this the belief that only a powerful and intrusive regulatory state can prevent destructive climate change, then the case for the blue utopia looks ironclad. To save the planet, save the middle class and provide American minorities and single mothers with the basic elements of an acceptable life, we must set up a far more powerful federal government than we have ever known, and give it sweeping powers over the production and distribution of wealth.
But what if this isn’t true? What if the shift from a late-stage industrial economy to an information economy has a different social effect? What if the information revolution continues and even accelerates the democratization of political, social and cultural life by empowering ordinary people? What if the information revolution, like the industrial revolution, ultimately leads to a radical improvement in the way ordinary people live and opens up vast new horizons of human potential and freedom?
Obviously nobody knows what the future holds, and anything anybody says about the social consequences of the information revolution is mostly conjecture; still, the elegantly paternalistic pessimism of our elites about the future of the masses seems both defeatist and overdone. The information revolution, one should never forget, may be disruptive but more fundamentally it is good news. Human productivity is rising dramatically. If the bad news is that fewer and fewer people will earn a living working in factories, the good news is that a smaller and smaller percentage of the time and energy of the human race must be devoted to the manufacture of the material objects we need for daily life. Just as it’s good news overall when agricultural productivity increases and the majority of the human race no longer has to spend its time providing food, it’s good news when we as a species can free ourselves from the drudgery and monotony of factory work.
Good news is bad news for people who don’t like (other people to have) freedom. They need a crisis to not waste.
Technological innovation has always eliminated jobs, a fact for which we should be thankful: our ancestors were brick-makers, arrow fletchers and animal skinners. It has also created wealth, and that wealth has been invested in new ventures, using new technologies, that have created new jobs. This has been true for thousands of years. So what has seemingly changed so suddenly? It seems obvious that in the U.S., the game-changer is metastasizing government spending, much of it wasteful, combined with trillions of dollars in government borrowing and oppressive regulation, which together have suppressed the wealth creation and investment that normally would have created millions of new jobs, along with trillions in new economic output.
In other words, the current recovery is uniquely awful because we have never before had such a left-wing federal government.
It’s not clear yet how much oil is recoverable, but even at the low end the field would include as much shale oil as America’s Bakken formation, which has helped transform U.S. energy production and the global energy landscape. If higher estimates prove more accurate, Australia could join the U.S. as one of the world’s top oil producers.
Good news for the world. Bad news for OPEC (and those who want to fund Islamism). And for global-warming hysterics.