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I heard a few key thinkers predicting a larger recession due to our inability of getting more energy out. GDP and energy seemed to be correlated so far, as if
by batmansmk 7y ago
I heard a few key thinkers predicting a larger recession due to our inability of getting more energy out.
GDP and energy seemed to be correlated so far, as if our growth is directly or indirectly fueled by the cheap labor of machines and automation.
Gas and electricity production reached a peak which can only go down in a finite world. With a constrained energy supply, GDP should go down. At least that's what happened so far since the 1800s.
Germany and UK entered recession the last quarter.
- earnubs 7y agoUK has not entered recession, UK has 1 negative quarter, a recession is 2.
- Nasrudith 7y agoThat model seems incomplete given the lack of efficiency as a variable. Home energy usage went down in spite of growth in electronics and power mainly due to better lighting efficiency alone. While it can help it doesn't drive all. One common mistake in economic growth modeling is thinking only in terms of bulk. We are far richer than bronze age herdsmen but very few of us have tens of thousands of livestock.