Bunny Rabbit Economics

:Non-sustainable Economy, Populations & Environment.

Classical Analysis:

For the last 150 years or so there has been an ongoing quasi-religious debate between economist and environmentalist.  Unfortunately this process generated far more heat than light because each  side mistakenly believed that between their respective camps they encompassed all the material relevant to the debate. Both side realized that 'Technology' was a complex enigma of promise and pitfalls. But neither side  seem fully cognisant of the extent that Energy (mode, forms & sources) amplified Technologies'  beneficial or detrimental ramifications.

In 1776 with the publication of  " An Inquiry into the Nature and Causes of the Wealth of Nations"   {now commonly called "The Wealth of Nations"}Adam Smith (1723-1790) defined the foundation of Classical Economics (along with  David Ricardo).  Among the other principal contributors to classical economic theory is the maligned demographer Thomas Robert Malthus (1766-1834),  who in 1798 in publishing his "Essay on the Principle of  Population" soberlycontradicted optimism of human progress bubbling from the daily excitement and novelty that was the Industrial Revolution.

Smith & Malthus's fine work of the18th century,  is conceived in a time when humanity fantasies were still constrained by climate and animal muscle power.  Thus informed by natures limitation there is no haemorrhage yet between ecological and economic  disciplines.


Industrial Revolution & Bunnies.

Unfortunately from the Industrial Revolution with humanity's first large scale utilization of hydrocarbons as concentrated energy stores for  mechanical power,  a critical but unrecognized fissure gapes within economics'  systematic soundness.  Economic analysis began to concentrates on ever more arcane minutiae of money, forgetting the  importance of environmental capital, while totally failing to perceive the calorific value and implications of finite hydrocarbon resources.  Despite;- neo-classical economics,  macro-economics,   Keynesianism &  Monetarism, all the impressive later names for schools or movements in economics after the Industrial Revolution, the whole discipline of economics would be better termed 'Bunny Rabbit  Economic';- open system, ever expanding horizons, growth for the sake of growth. 

In the 19th century the Industrial Revolution gathered steam, then broke-out of Britain in the world's first taste of  globalization. Intoxicated by the technological wonders of progress, entrepreneurs, industrialists, politicians, economists even! soon forgot Malthus's cautionary words. Swallowing their own propaganda the bunnies were  off at full hop to their futuristic Shangri-la. Malthus's careful pre-industrial era analysis was carelessly extrapolated in time and space to a world that Thomas could never had imagined. The political Left attacked  Malthus seeing in his theory's postulation that, poverty would always arise as population outstripped agricultural potential, a negation of their campaigns for the social betterment of the masses. Simultaneously the  political Right stigmatized Malthus as false prophet-of-doom, for daring to imply that mankind's (women folk then still legally chained in the background)  potential thence profit should have any moral or ethical  restrictions.  Also to a lesser extent Adam Smith's work was dismembered, then misconstrued.  Smith's support of "laissez faire" economic arrangements morphed from, Smith's justifiable opposition to government  interference in a market for the advantaging of government enterprises, to modern business desire for unrestricted activity free of any  any moral or ethical consequence  ( something obviously repugnant to  Adam Smith's convictions).    


The Fat Black Pseudo-green Revolution.

While some Bunny Rabbit Economists such as John Maynard Keynes provided useful refinements, generally the noble discipline economics deteriorated into a priesthood of avarice providing societies  with powerful myths to justify the toil of the masses. The Great War (aka World War 1) brought the world's first experiment with globalization to a crashing end.  Then the Great Depression followed by  World  War II stressed humanity's hopes while further alienating many folk from the natural order. Science enmeshed with technology in the public mind by the end of the war had become a miracle machine of limitless promise  & potential.  Thus for many the so called 'Green Revolution' appeared to have finally relegated Malthus's warnings (that population inevitably outstrips the food supply) to the bad-jokes of history  basket. 

The slight of hand in the miss-named "Green" Revolution, was the discovery how a fraction of oil's  energy value could be transmuted into food stuffs needed by the human physiology for its  metabolism's  energy source.  So the Fat Black (Pseudo-green) Revolution is a more accurate description of what was being done.  Oil was converted into fertilizers to feed the crops, herbicides to kill  the weeds that flourished in the fertilizer enriched soils, then pesticides to kill the bugs whos numbers multiplied with the move to broad-acre monoculture facilitated the mechanisation of farming with the first steam  tractors, then the internal combustion engine and finally diesel motors. In the June 2004 article "The End of Cheap Oil" National Geographic in the USA reported that to grow one pound of beef requires the consumption of  three quarters of a gallon(US) of oil!  The direr implication of this is as the oil dwindles so does most of the extra food production attributable to the Pseudo-green Revolution.  Without that bounty of extra  food a lot of people will simply starve, Malthus's unheeded warnings will have acquired a monstrous over-bite. Put another way in effect most of the world's current population is surviving because it is eating reformed  hydrocarbons. Dale Allen Pfeiffer more pointedly terms this " Eating Fossil Fuels" which is his must read article for everyone now alive ( on-line at  http://www.fromthewilderness.com/free/ww3/100303_eating_oil.html (first published 2004 by FromTheWilderness.com )). Dale does a scholarly examination (with excellent in-depth links ) of why agriculture inevitably is the most frightening aspect of our future world. Danielle Murray's resent Earth Policy Institute paper "Oil and Food: A Rising Security Challenge" ,  concentrates other aspects of the agriculture, especially  energy wastage once food leaves the farm gate. While Daniell's paper is dryer in tone it has some very good policy positions for what promises to be a painful transition to the Post Peak Oil agricultural scene.

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Last update: October 2005 Southern Spring
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