by gego » Tue 09 Jan 2007, 18:21:37
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')...it would also follow that the opportunities for people to enrich themselves and move up in life by innovation and profiting from new econmic schemes and ideas will also be extremely limited. I also believe (though I cant prove) that an unrestricted free market in these circumstances of a declining economy, which you seem to espouse will lead to even more concentration of wealth and power, that remains in certain hands over time, leaving the bulk of the masses with little chance of improving their life.
The pie and how it is distributed!
Of course the economic pie will shrink as a result of the increasing energy cost of acquiring resources and a result of extracting less resources. This will happen as a result of nature, irrespective of what man does, short of discovering and harnessing a totally new source of energy to replace what we have depleted.
How the smaller pie is divided is a separate issue. I think that even those who find my thoughts offensive agree that the present worldwide system of having rulers grant economic advantage to themselves and their friends has resulted in concentrated wealth.
If this system continues the burden of a shrinking pie will be more heavily borne by the majority, resulting in more concentration of wealth.
One of the alternatives is a typical Soviet Union or South American collectivization which would result in an immediate destruction of most of the pie, simply because these systems do not work.
Another alternative is to remove the many, many laws that grant privilege to the few at the expense of the many and let the free market work. This is not going to stop the effect of the shrinking pie, but it will allow people to freely follow their own best interest without the burden of having a good portion of their effort stolen by those with legal privilege or by the government itself.
Unfortunately the collectivist mindset of the majority will likely lead to support for more and more government intervention in the economy, further destroying the free markets and creating even more privilege for the special interests; witness the mandating and subsidy by government of this foolish ethanol alternative. Does not that take wealth out of your pockets, making life more difficult, while benefiting an industry that the free market judged to be unworthy of investment?
None of you need worry that economic freedom will be the means by which we traverse the future. There is no way that those enjoying the benefits of being your masters will relinquish their nice position voluntarily. There may be some cases of countries collectivizing like Venezuela, much to the detriment of the citizenry, but I am sure this alternative will make those of you with these collectivist desires to not run your own lives happy until you get over the cheering of the change in rulers and face the reality.
In actuality, I think that the economic collapse will come on with such speed and the dieoff progress with such ferocity that post peak, not much will matter but who can outrun the bear.