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PeakOil is You

THE Poverty Thread (merged)

What's on your mind?
General interest discussions, not necessarily related to depletion.

Postby Hawkcreek » Thu 16 Jun 2005, 02:07:52

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Postby JohnDenver » Thu 16 Jun 2005, 06:59:28

$this->bbcode_second_pass_quote('johnmarkos', 'A')t one point you mentioned that you were, "Viscerally opposed to powerdown." Has your opinion changed?


Yes. Of course I still believe 100% that our human destiny lies in space, and that we can and should make the next step to Lunar Space Power etc.

I see two ways the future can turn out:
1) We get through peak oil, synch into nuclear and discover fusion (or realize that space power isn't as hard was we thought) etc. We have some tough times, but there is no severe plateau or trough in the growth curve. Fusion or space power saves the day, and we smoothly expand into space with our current economic and consumer mindset intact.

2) Cars really are a virus. Not just a nuisance, but actually a lethal threat which could kill us while we're trying to hatch out of the egg. Oil peaks, but we handle it by liquefying every hydrocarbon (gas, coal, unconventional, oil shale) left in the earth to fuel an exponential explosion of cars. We raise up the poor, so they can have a higher standard of living, i.e. cars. Chinese peasants are driving en masse. Oil peaks, but that doesn't stop us, because we can liquefy gas and coal. Then gas runs out, so now we're running on nuclear electricity, and mining coal and uranium like mad to fuel private automobiles. We're also liquefying huge amounts of food to fuel cars, and paving over agricultural land for parking, roads etc. There's a lot of stress in the system, and a lot of fissile material in the world, and a nuke or two get blown off. Massive fuel stockpiles are sucked dry by pointless wars. Meanwhile, the atmosphere is getting all fucked up from car emissions, and the green house effect is kicking in for real. Eventually, the strain is so great that we don't get out into space, because we wasted too much of our resources making cars.
I disagree with the doomers who think this sequence of events is imminent. I think, if we just let it run its course, it might take 70 years or more. I personally expect to die before society serious questions the car.

No matter which scenario is true, we should learn from the poor.
Case 1) People living in a sealed space colony will need to live a lot more like the indios or Chinese peasants than like us. Growth capitalism isn't going to work inside a sealed space colony. What is needed is the mindset of cyclic man, who enacts the same ritual every year, and regards deviation from the cycle like an error or a sin. (Mircea Eliade has written at length on this topic.)
Space colonists will also need to recognize their own excrement as a resource, just like the poor Chinese did (do?) and the poor Indians (in India) who grow fish in ponds fertilized with sewage.
The most important thing we can learn from "primitive" people is how to exist in a condition of economic stasis. I am not anti-growth. The destiny of humanity is exponential growth into space. But to do that, we've got to learn how to control and stabilize growth, when necessary. Monte is right: In a static economy, the real interest rate must be zero. Positive interest won't work in a space colony. You don't want anybody sitting on their ass and megaconsuming, no matter how much money they have. Resources are too critical to allow any form of parasitism, no matter how well founded it is in the works of Ayn Rand.

Case 2) Here we need to learn from the poor so we don't kill ourselves. I'm not talking about powerdown where we shun technology and money etc. I'm talking about about power-stabilize, where we synch into a graceful stasis or powerdown so we don't foul up the step into space. We need to conserve our resources and restructure because metamorphosis takes a lot of energy.
The cornucopians are right. We can, and probably will, stall off dealing with the car problem for a long time. But in the long view, we only have two options, space or death, and wasting energy on cars and other frivolous bullshit makes death a lot more likely. The doomers are right on that point.
Unfortunately, I think Kunstler is wrong. Peak oil will not kill the car, and its going to take an excrutiatingly long time dying. Peak oil is not going to save the day, and we're going to have to kill the car ourselves. I regard that as virtually impossible, but I think it's a good idea to be optimistic, and try anyway.
So, you can count me as a strange bedfellow of Heinberg etc.
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Postby Dezakin » Thu 16 Jun 2005, 14:36:59

JohnDenver:
$this->bbcode_second_pass_quote('', 'I')t's more complex than that. Even capitalist states immediately revert to a planned economy in times of war. Does that mean they are communists at heart? That they believe in the market when it suits them, but believe in the planned economy when performance really counts?

No, it means that government is naturally opportunistic and power hungry, and in times of war seeks to swallow more control. FDR certainly was a statist at heart.

The assertion that planned economies naturally perform better than market economies is plainly misguided, given the experience we've seen over the past several decades in every country that tried to plan their economies. You might as well plan the weather.

$this->bbcode_second_pass_quote('', 'Y')ou could say the same thing about multinational corporations. They're planned, command economies. The internal resources are allocated by fiat, not by price. Imagine the U.S. as one big corporation. It would be a communist country.


You're attempting to turn a cigar into a pretzel. If the US were one big corporation, we would arbitrarilly hire and fire citizens, have unmitigated free trade with other countries, and behave rationally at the whim of shareholders, wherever they may be. And we would be subject to class action lawsuits and bankruptsy, would not be able to produce fiat currency at the drop of a hat...
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Postby johnmarkos » Thu 16 Jun 2005, 17:33:51

$this->bbcode_second_pass_quote('JohnDenver', 'Y')es. Of course I still believe 100% that our human destiny lies in space, and that we can and should make the next step to Lunar Space Power etc.


< . . . >

$this->bbcode_second_pass_quote('', 'S')o, you can count me as a strange bedfellow of Heinberg etc.


Thanks, JohnDenver, for that excellent description of your position. Although my focus is a little less long-term than yours (I'm primarily interested in terrestrial sustainability in the next 50 to 100 years), I think we're basically in agreement on the big picture. I also agree that the dominance of the private automobile is the most wasteful characteristic of modern society, as well as a source of both corruption and pollution. Eliminating this viral institution would be a giant step in the right direction.

The big question is, how do we move humanity beyond the automobile? How do we get people out of their cars? That is a topic for another thread.
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Postby oowolf » Thu 16 Jun 2005, 18:15:48

Children who grow up in the company of farm animals have stronger immune systems. I heard this quoted on the NOVA "Mad Cow" program-don't know the reference. This might explain the suseptability of persons in modern society to asthma, e coli, etc. Of course, poverty often brings malnutrition, overwork, unsanitary conditions which would attack the immune system.
(I think H5N1 could be bad news for the millions with degraded immune systems--from AIDS or from "civilization".)
We, the affluent, could be in for some attitude adjustment courtesy of Ma Nature.
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Postby johnmarkos » Thu 16 Jun 2005, 18:15:53

$this->bbcode_second_pass_quote('johnmarkos', 'T')he big question is, how do we move humanity beyond the automobile? How do we get people out of their cars? That is a topic for another thread.


I have started this thread here.
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Postby JohnDenver » Thu 16 Jun 2005, 23:23:25

$this->bbcode_second_pass_quote('Dezakin', 'J')ohnDenver:
$this->bbcode_second_pass_quote('', 'I')t's more complex than that. Even capitalist states immediately revert to a planned economy in times of war. Does that mean they are communists at heart? That they believe in the market when it suits them, but believe in the planned economy when performance really counts?

No, it means that government is naturally opportunistic and power hungry, and in times of war seeks to swallow more control. FDR certainly was a statist at heart.


Are you saying that World War II could have been waged with a laissez-faire market economy? How exactly would that work? The army would compete, in the marketplace, with non-war industries for resources? The choice of how intensely to wage the war would be placed in the hands of consumers? It sounds like nonsense. Pretend I'm a general, and explain it to me. Sell me on the idea.

$this->bbcode_second_pass_quote('', 'T')he assertion that planned economies naturally perform better than market economies is plainly misguided, given the experience we've seen over the past several decades in every country that tried to plan their economies.


Perform better at what? Define performance. How do you measure it?
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Postby Dezakin » Fri 17 Jun 2005, 01:48:41

$this->bbcode_second_pass_quote('', 'A')re you saying that World War II could have been waged with a laissez-faire market economy? How exactly would that work? The army would compete, in the marketplace, with non-war industries for resources? The choice of how intensely to wage the war would be placed in the hands of consumers? It sounds like nonsense. Pretend I'm a general, and explain it to me. Sell me on the idea.


I'm suggesting if you are going to engage in something as inherantly liberty destroying as warfare as a choice, or perhaps had war thrust upon you (which decidedly it wasn't in WW2) then you dont need to do the command economy. You establish bidding and contracts and the like with various industrial providers. The army pays for the end product with taxes and bonds, and the market produces the tanks and guns and whatnot. In an ideal world there isn't the unhealthy relationship with kickbacks to political campaigns and pork also.

Much of WW2 was a decidely unliberal powergrab by those who thought regulation of the economy was for the best, whats good in war is good in peace, that sort of thing. We could have easily brought our production for war to full speed with simple deficit spending rather than regulation of all sections of the economy.
$this->bbcode_second_pass_quote('', 'P')erform better at what? Define performance. How do you measure it?


GDP growth per capita is fine.
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Postby Raxozanne » Fri 17 Jun 2005, 03:28:05

$this->bbcode_second_pass_quote('oowolf', 'C')hildren who grow up in the company of farm animals have stronger immune systems. I heard this quoted on the NOVA "Mad Cow" program-don't know the reference. This might explain the suseptability of persons in modern society to asthma, e coli, etc. Of course, poverty often brings malnutrition, overwork, unsanitary conditions which would attack the immune system.
(I think H5N1 could be bad news for the millions with degraded immune systems--from AIDS or from "civilization".)
We, the affluent, could be in for some attitude adjustment courtesy of Ma Nature.


A farm animal you say?
My parents wouldn't even let me keep a dog :x
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Postby Falconoffury » Fri 17 Jun 2005, 17:26:41

$this->bbcode_second_pass_quote('', 'T')he destiny of humanity is exponential growth into space.


I hope you don't mean exponential growth of population. Even the universe isn't infinite. We would be doing the same thing we did on Earth, spreading like cancer.

What the world needs is a no growth economy that pressures populations to stop growing. That's neither communism, socialism, nor capitalism. The idea has never been emphasized in any government in human history. If we want a habitable planet for future generations, we have stop growing our population and the exploitation of the planet's resources.
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Postby JohnDenver » Fri 17 Jun 2005, 21:15:20

$this->bbcode_second_pass_quote('Dezakin', 'I')'m suggesting if you are going to engage in something as inherantly liberty destroying as warfare as a choice, or perhaps had war thrust upon you (which decidedly it wasn't in WW2) then you dont need to do the command economy. You establish bidding and contracts and the like with various industrial providers. The army pays for the end product with taxes and bonds, and the market produces the tanks and guns and whatnot.


Okay, the army needs war material, and they open a bidding process. If I'm a manufacturer, why should I be interested in it? This is a free market solution, after all, so I don't have to bid. Maybe I can get a better margin selling speed boats to millionaires. Or maybe I don't like the war, and I don't feel like supporting it. How do you solve that problem?

Or consider gasoline. For obvious reasons, the army wants to maximize the amount of gasoline available for use in the field. On the other hand, you have millionaires who want it to power their speed boats. If we use the free market solution you are proposing, the millionaires can outbid the army, and fart around on their boats while soldiers are dying in the field for lack of gasoline. How do you solve that problem?

What happens when there aren't enough refined products to satisfy both the army and the air force? Do they settle that by bidding against each other in the market, so that resource allocation is determined not by tactical needs, but by who has the most money? How do you solve that one?

Also, if this is a free market solution, does that mean that manufacturers are free to bid on contracts to supply the enemy? If not, isn't that a restraint on the free market which would have negative consequences on the optimal allocation of resources?

And how do you mobilize soldiers with the free market solution? Does the army bid for soldiers as well? Do citizens have the right, just like any participant in a free market, to refuse to fight, no matter how much the army is offering? How do you solve that problem?

$this->bbcode_second_pass_quote('', ' ')In an ideal world there isn't the unhealthy relationship with kickbacks to political campaigns and pork also.


We're not talking about an ideal world. We're talking about winning a real war, in the real world.

$this->bbcode_second_pass_quote('', 'W')e could have easily brought our production for war to full speed with simple deficit spending rather than regulation of all sections of the economy.


I think you have the same sort of problems here. Where are you going to get the money to spend? From bonds? In that case, what do you do if people don't buy the bonds? Maybe they'd rather buy stock in donut retailers, or flip real estate. I don't see why anybody should put money into war bonds when you can get a better return on your money somewhere else. This is the free market after all.

$this->bbcode_second_pass_quote('Dezakin', '')$this->bbcode_second_pass_quote('JohnDenver', 'P')erform better at what? Define performance. How do you measure it?


GDP growth per capita is fine.

I agree with you that a free market system is the best system we know of maximizing GDP growth per capita. But maybe that's not what you want to maximize when you are fighting a war. You want to maximize fire power and material in the field.

Maybe servicing the frivolous needs of consumers adds more to GDP than making bullets. How do you know that won't happen?

Why is it that GDP growth per capita needs to be maximized? What goal are you trying to achieve by doing so? I think the common sense answer is this: to make citizens wealthier and happier. But isn't that contrary to the goal of war, i.e. to mobilize force, and kill the enemy?
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Postby marko » Fri 17 Jun 2005, 21:59:53

I have to say, I am amazed that a forum devoted to the implications of peak oil has so many worshipers at the altar of capitalism.

Just look at where capitalism has gotten us: A world where the population is roughly six times the planet's carrying capacity, where roughly half of the planet's population cannot satisfy their basic needs for food, shelter, and healthy living conditions, where a tiny fraction of the world's population live in incredible luxury made possible by the labor of billions of poor and struggling people.

How can anyone think that capitalism is a good system, much less a rational one, when the facts about peak oil are now easily accessible? Yet our capitalist system and the people who control it continue to pursue paths that are making our plight dramatically worse and increasing the risk of a calamity worse than any humankind has ever known. This disastrous path is the path of "profit" and "economic growth." The pious devotees of our capitalist religion, even those who know something about peak oil, see capitalist profit and economic growth as almost sacred goals, even though they are imperiling our species and ravaging our biosphere. Where is the rationality in any of this?
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Postby Dezakin » Mon 20 Jun 2005, 16:15:34

JohnDenver:$this->bbcode_second_pass_quote('', 'O')kay, the army needs war material, and they open a bidding process. If I'm a manufacturer, why should I be interested in it? This is a free market solution, after all, so I don't have to bid. Maybe I can get a better margin selling speed boats to millionaires.

By outbidding of course. You're a national government with the power to raise taxes, issue bonds, print fiat currency. Perhaps these millionaires only are so efficient at being captains of industry because they look forward to farting around on their speedboats, or perhaps in attempting to ration any commodity impedes production of vital contracts in ways that aren't immediately obvious.
$this->bbcode_second_pass_quote('', 'O')r maybe I don't like the war, and I don't feel like supporting it. How do you solve that problem?

We currently have laws related to tax evasion and the like that ought to be fine.
$this->bbcode_second_pass_quote('', 'W')hat happens when there aren't enough refined products to satisfy both the army and the air force? Do they settle that by bidding against each other in the market, so that resource allocation is determined not by tactical needs, but by who has the most money? How do you solve that one?

And thats exactly why you want markets to determine this. Command economies are inefficient at doing scarce resource allocation. It would behove the army and airforce to assign prices to objects and maintain bugets to keep scarce resources in check.
$this->bbcode_second_pass_quote('', 'A')lso, if this is a free market solution, does that mean that manufacturers are free to bid on contracts to supply the enemy? If not, isn't that a restraint on the free market which would have negative consequences on the optimal allocation of resources?

Of course not. Market solutions are only for doing resource allocation and you can plainly isolate obvious market failures. The thesis is that rationing and command economies are inherantly ineffecient for doing such resource allocation, not that libertarian ideals are the best way for a nation state to win a war.
$this->bbcode_second_pass_quote('', 'I') think you have the same sort of problems here. Where are you going to get the money to spend? From bonds? In that case, what do you do if people don't buy the bonds? Maybe they'd rather buy stock in donut retailers, or flip real estate. I don't see why anybody should put money into war bonds when you can get a better return on your money somewhere else. This is the free market after all.
Where are you going to get your resources in a command economy? You cant make resources exist by fiat. You get your money from bonds and deficit spending and if necissary through fiat monetary manipulation and swallow the coming inflation. People will buy the bonds if you need to sell them enough, and the market sets the rates.

We will never see a war like WW2 again however, so the topic of conversation is largely academic. Dense nets of international trade have made it such that it is nearly impossible for a real power to hurt another power without hurting themselves. Advanced missile and nuclear technology have ensured that were any nation-state insane enough to pursue a large war, the economics of mobilizing the nation is far too long-term a problem to be concerned with when the duration of such a war can be measured in the hours.

marko:$this->bbcode_second_pass_quote('', 'J')ust look at where capitalism has gotten us: A world where the population is roughly six times the planet's carrying capacity, where roughly half of the planet's population cannot satisfy their basic needs for food, shelter, and healthy living conditions, where a tiny fraction of the world's population live in incredible luxury made possible by the labor of billions of poor and struggling people.
Yes. Certainly a miserable situation. Better than any ever in history, but I suppose its still miserable.
$this->bbcode_second_pass_quote('', 'H')ow can anyone think that capitalism is a good system, much less a rational one, when the facts about peak oil are now easily accessible?
Thats amusing. The answer is in the question. Capitalism has made you wealthy enough to commiserate in like minded internet communities on the desolate state the world is in because of the capitalist system.

Capitalism is just resource allocation by markets. Come up with a better way to do resource allocation, and I'm all for it. There are market failures to be sure: Stock market bubbles, depressions, and so on, but largely capitalism works. If you're railing against the injustices of the robber barons and landed elite, well, fine... but then you're railing against policy regarding inheritance and the like, which today are orthoganal to capitalist models.

Perhaps its axiety over the enormous power corporate entities posess. Certainly corporations are disturbing entities, but I cant think of a better way to do capital accumulation and management. Better the corporate devil with transparent profit motives than some political beaurocrat serving twin masters of idealism and corruption ready to piss away state resources to please unknown masters.
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Postby Tyler_JC » Mon 20 Jun 2005, 17:09:31

Dezakin...is...right!

Please take note people!

If your goal is an increase in per capita GDP, Capitalism is the simply the best system to do this. War is not a Capitalist ideal. It might be the goal of wealthy Plutocrats, but generally Capitalistic Republics don't attack each other. If you can find an example to the contrary, please tell me.

War hurts the economy. Any time The State dictates what must be spent on what, productivity is lost. When a bomb takes out Phil's factory, he loses valuable workers and production capacity. The preferred state of the world is peace. Or at least for the free world (dictators and plutocrats aren't part of the free world).

War did not bring us out of WW2, increased trade after the war pulled us out. WW2 expanded the money supply via a massive increase in debt (thank you liberty bonds). The rest of the world was in pieces, the USA was almost totally undamaged. We were able to trade our way to prosperity. An economy based on consumer and government debt is the surest way to wipe out all future growth.

The discussion has little to do with Peak Oil. Peak Oil (and Peak Energy if you believe it) will increase the cost of doing business. In fact, the cost increases will push many companies out of the market. If people would stay rational and avoid war/anarchy/MadMax, the economy would recover. Not to the level we have today, but to a ~Victorian standard of living~ (maybe better, probably worse).

Unfortunately, we have a world full of crazy f***ers who ruin life for the rest of us. In order to protect ourselves against those people, we will move into castles and Feudalistic relationships with our "Lords". In time, the entire world may end up looking like France 1100AD. That way of life was sustainable and offered a better quality of life than tribal chiefdom. We aren't going to forget about bathing or crop rotation, so this time around, we may have an even higher quality of life than France 1100AD.

But back to growth v. nongrowth. Infinite growth is not possible. However, if we reduced our population numbers, we could have more GDP per person without actually growing the economy. More houses for everyone and no new ones would need to be built. We would have more land per person, more widgets. Life would get better, not worse.

But notice I used the word "would". As I've said hundreds of times, the world is full of crazy f***ers who ruin life for the rest of us...
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Postby I_Like_Plants » Mon 20 Jun 2005, 17:29:09

JC the USA had that kind of system once, before the Federal Reserve and the set up of the fiat currency system.
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Postby Ludi » Mon 20 Jun 2005, 18:01:11

$this->bbcode_second_pass_quote('Tyler_JC', 'I')f your goal is an increase in per capita GDP, Capitalism is the simply the best system to do this.


My goal is to increase per capita well-being. Capitalism doesn't do this for the majority of people. We're the lucky ones. I think we can devise a better system.
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Postby Tyler_JC » Mon 20 Jun 2005, 20:35:07

$this->bbcode_second_pass_quote('I_Like_Plants', 'J')C the USA had that kind of system once, before the Federal Reserve and the set up of the fiat currency system.


Very well. That works for me! 8)
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Postby JohnDenver » Mon 20 Jun 2005, 22:30:58

$this->bbcode_second_pass_quote('Dezakin', 'C')ommand economies are inefficient at doing scarce resource allocation.
[...]
Capitalism is just resource allocation by markets. Come up with a better way to do resource allocation, and I'm all for it.


How exactly do you measure "efficiency of resource allocation"?

In precisely what sense is scarce resource allocation by markets "efficient", when it fails to provide food for starving people, while simultaneously providing too much food to the obese?
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Postby Dezakin » Mon 20 Jun 2005, 23:57:29

$this->bbcode_second_pass_quote('', 'I')n precisely what sense is scarce resource allocation by markets "efficient", when it fails to provide food for starving people, while simultaneously providing too much food to the obese?


In the sense that it does a better job than any other system we've seen tried; North Korea is the current favorate anti-capitalist example, and China's experiments under Mao were hardly inspiring examples.

Honestly I can't think of anyone that starves under real capitalist regimes. If they're that hungry, they trade their labor for food. The 'market failure' that you run into is if they are incapable of labor and no one supports them they die. But if you want to take a ghoulish look at the system... if they were incapable of labor they aren't worth allocating food to anyways.

Look, if you think you can devise a system that outperforms markets for efficiency of resource allocation, you can make a killing on the stock market predicting market moves before they happen.
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Postby JohnDenver » Tue 21 Jun 2005, 01:14:29

$this->bbcode_second_pass_quote('Dezakin', 'L')ook, if you think you can devise a system that outperforms markets for efficiency of resource allocation...


I still don't understand what "efficiency of resource allocation" means, particularly the word "efficiency". Can you give a clear definition so we can all understand what you're talking about?
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