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According to the International Energy Agency, coal accounts for about 40% of India’s total energy consumption, oil for about 24%, and natural gas for 6%. America constitutes less than 5% of the world’s population but consumes 26% of the world’s energy.
Therefore mass transit, carpooling, and other fuel efficient means of transport (using electricity) would aid in its conservation.
Although India is crumbling under the burden of the energy deficit, 35.5% of its population still lives without access to electricity. The resources laid down by nature are finite and we need to use them judiciously and also without causing irreversible damage to the environment. If you think energy is a government and legislative issue, you will be surprised to know that there are more than a hundred ways to become energy efficient in your everyday life. Since 1982, the number of people employed in the United States has tended to move in a similar pattern to the amount of energy consumed. I have written recently about the close long-term relationship between energy consumption and economic growth.
This close relationship is concerning, because if it holds in the future, it suggests that it will be very difficult to reduce energy consumption without a lot of unemployment. As I have mentioned previously,A James Hamilton (2011) has shown that 10 out of 11 recessions in the United States since World War II were associated with oil price spikes. If there is a possibility of international trade, manufacturing and some types of services will tend to move to areas where costs are lowest. Besides direct energy costs, wages are another part of the difference in costs from one part of the world to another.
Figure 4 below shows that there has been a striking difference in how energy consumption has grown in various parts of the world. Energy consumption has been quite flat in the grouping of industrialized countries I show first (European Union-27, USA, and Japan). Other countries, especially Asian countries like India, also ramped up their energy consumption at a similar time. While I don’t have employment data for Figure 4 groupings, I do have economic growth data (Real GDP is Gross Domestic Product, adjusted to remove effects of inflation), shown in Figure 6, below.
One point that many people miss is that the Great Recession of 2007-2009 was to a significant extent a phenomenon of the older industrialized countries.
Oil had been our largest source of energy, and our own domestic production was dropping quite rapidly. As a result, the period 1972-1982 was a time when energy consumption was relatively flat, but employment rose. It is hard to tell what the relative impacts were of the many changes that took place in the 1972 to 1982 time period. On a positive note, one factor that has helped keep quality of life up is increased efficiency in using energy.
Another thing that has helped improve living standards is the amount of manufactured goods we are now importing from China and other countries around the world, especially Asian countries. While the percentage of people with jobs was rising between 1960 and 2000, in recent years it has dropped. The percentage of US population employed outside the home or farm has grown for a very long time. The combination of rising energy costs (especially oil) and increased international trade gave China and other Far Eastern countries an opportunity to ramp up their manufacturing and service industries (call centers in India, for example).
There had always been some foreign trade, but the amount of trade increased in the late 1970s, when we started importing smaller cars from Japan, as well as more oil. Figure 13 A shows that while Kyoto Protocol may have helped reduce emissions in some countries, world carbon dioxide emissions have grown more than what would have been expected, based on the 1987-1997 trend in emissions. It is striking to me that since the mid-1970s, we have seen what could perhaps be interpreted as increased hierarchical behavior in humans and corporations. Increased use of part-time and contract jobs might be considered a trend in this direction as well. Impact on Governments.A If fewer people are employed, this is a problem for governments around the world. September 2012 Will Be Remembered: The West Lost Its Status As A Global Economic Superpower And Currency War Has Begun As Both ECB And FED Launch Unlimited Money Printing!!! The ties between energy consumption, economic growth and the labour market are now closer than ever before. The number of jobs available to job-seekers has been a problem for quite a long time now – since 2000 in the United States, and longer than that in Europe. I have written recently about the close long-term relationship between energy consumption and economic growth. As I have mentioned previously, James Hamilton (2011) has shown that 10 out of 11 recessions in the United States since World War II were associated with oil price spikes. While I don’t have employment data for Figure 4 groupings, I do have economic growth data (Real GDP is Gross Domestic Product, adjusted to remove effects of inflation), shown in Figure 6, below. Let’s look at how the United States changed its energy consumption, per number of people employed, over time. During the 1949 to 1972 period, energy consumption was consistently rising faster than the number of people employed. Role of World Trade: Figure 4 suggests that world trade makes a huge difference in the amount of energy consumed. Figure 13 shows that while Kyoto Protocol may have helped reduce emissions in some countries, world carbon dioxide emissions have grown more than what would have been expected, based on the 1987-1997 trend in emissions.
Gail Tverberg is a trained casualty actuary who writes about the impact of the limited supply of oil.
The Close Tie Between Energy Consumption, Employment, and Recession is republished with permission from Our Finite World. QFINANCE is a unique collaboration of more than 300 of the world’s leading practitioners and visionaries in finance and financial management, covering key aspects of finance including risk and cash-flow management, operations, macro issues, regulation, auditing, and raising capital. Decoupling between economic growth and energy consumption is often attributed to energy efficiency, but in actual fact stems primarily from the general transition to more service-based value creation as economies mature. Developing nations can therefore be expected to achieve substantial reductions in energy intensity over the coming decades as value creation is shifted more towards services. The ideal scenario in terms of decoupling is the achievement of a growing economy despite declining levels of energy consumption. The use of NDP instead of GDP makes the US look better since capital writedowns are smaller relative to Europe and Japan, but I think this is a more representative measure than GDP. Overall then, the US appears to be the shining light in the story of continued economic expansion despite declining energy consumption. In fact, an important worrying trend in the US has now gone on for so long that it is actually becoming a mainstream issue: stagnant wages. As a result, there appears to be very little decoupling between real household income (here seen as a proxy for living standards) and energy consumption. It is clear that, from the time that household energy consumption actually started a structural decline (around 2000), the general standard of living in the US has declined in tandem. These trends pose some serious questions regarding the notion that rich nations can continue to increase living standards without increasing energy consumption (and the associated environmental impact). One would therefore very much like to believe that Europe and Japan will one day manage to achieve a meaningful economic recovery and that the recent divergence between household income and domestic production in the US will reverse.
Was reading about the ancient roman monetary system, and while being vastly different systems it seems that some things are similar. Has any society ever increased or even maintained a living standard while reducing energy consumption? Use individual countries and add meaningful numbers for kwh per 1000USD GDP, give GDP share of industry – one could learn a lot.
But my feeling is that this was not the goal of the author, feeling good was more important.
Your car or truck has components from a dozen different makers in hundreds of different locations. Nineteenth Century thinking kept enough of our population poorly educated to serve and work in factories and farms. Try keeping up the living standards with a national infrastructure that is falling apart due to mostly band-aid fixes for the last 35 years and is now being increasingly hammered by climate change which most of it was not engineered for. So while it may seem that energy growth is reducing relative to GDP growth, they have fiddled with GDP to achieve that. Even stealing uses less energy.Wallets now come metal lined to prevent pick-pockets stealing your credit card data while never touching you. AS for debt, credit and money supply, if it were not for attempting to squeeze and extra twenty years out of Iraq, we woud not have to reinvade. Appearing on ABC’s This Week on Sunday, the Wisconsin governor initially demurred when interviewer Jonathan Karl asked if he’d rule out a “full-blown U.S. Pure unadulterated bullshit from the Ministry of Propaganda with more to follow, I am sure. Pen said “Has any society ever increased or even maintained a living standard while reducing energy consumption?” There are no free lunches.
We fool ourselves thinking we are not superstitious or have part of our mind that is primitive that has not evolved.
I guarantee many of the top minds in the global leadership have fooled themselves believing in technology and innovative development at least in regards to their own survival.
The powers to be believe in themselves even though they are just as much a part of the farce of a culture we are in today.
Apneamna, there are cultures that did not gain their positions from murder, but they are not in the West.
I am sure there were tribal feuds all throughout history in most places, but they didn’t claim it was to better the tribes being slaughtered. The Institute for Energy Research is a not-for-profit organization that conducts intensive research and analysis on the functions, operations, and government regulation of global energy markets.
Energy is known as the “lifeblood of society” because of the essential role it plays in sustaining life on Earth. Putting energy’s “capacity for work” to use in solving the most basic of human needs – feeding, clothing and transporting people, as well as protecting them from enemies and the elements – has meant applying human ingenuity to the myriad of challenges posed by life itself. When a Scotsman named James Watt patented the world’s first truly efficient and practical steam engine in 1769, it elevated energy’s service to mankind to a new level. The rapid socioeconomic transformation brought about by industrialization and made possible by fossil energy was without precedent in world history. In developed countries like the US – energy independence sits in the center of election manifestoes and occupies primetime during debates and key notes. With production remaining stagnant, fuel imports expose India’s energy sector to global vulnerabilities to natural calamities and political unrest. Consumers who purchase hybrid vehicles are eligible for tax credits amounting to several hundred dollars.
It might sound paradoxical to preach efficiency to people who have no access to the products in the first place.
Despite all its energy efficient practices the United States has historically been the world’s largest producer of greenhouse gases. Unplug electronics, avoid energy vampires and upgrade your appliances to energy efficient ones.
If we look at the percentage of the US population who are employed, it is now back to 1984 or 1985 levels. Total number of individuals employed in non-farm labor, and reported by the US Bureau of Labor Statistics, divided by US resident population, as reported by the US Census Bureau. Employment is the total number employed at non-farm labor as reported by the US Census Bureau.
We know that economic growth is tied to job creation, so it stands to reason that energy consumption would be tied to job growth1. It also would seem to suggest that a shortage of energy supplies (as reflected by high prices) can lead to unemployment.
This pattern is quite different from the US pattern we saw in Figure 2, which was much flatter.


Energy Consumption divided among three parts of the world: (1) The combination of the European Union-27, USA, and Japan, (2) The Former Soviet Union, and (3) The Rest of the World, based on data from BPa€™s 2012 Statistical Review of World Energy.
The Former Soviet Union (FSU) collapsed in 1991, and the consumption for those countries has never recovered.
If we look at China’s fuel consumption by itself, we see that its huge rise in energy consumption (Figure 5, below) came mostly from increased coal consumption starting at that time. India also uses coal as its primary fuel, with 53% of its energy consumption in 2011 coming from coal (based on BP 2012 data). Three-year average real GDP growth for (1) EU-27, USA, and Japan, (2) Former Soviet Union, and (3) Rest of the World, based on data by Angus Maddison through 2008, and USDA since then. In fact the Rest of the World’s growth has been much faster for nearly the entire period shown on the graph. Oil was cheap, as were other energy sources, so not too much thought was given to how efficiently it was used. By 1973, the Arabs had discovered our vulnerability, and the 1973 Oil Embargo began, leading to a sharp rise in gasoline prices. Employment and Energy Consumption using data similar to that used in Figure 2 and 7, but for the 1972-1982 time period. A big part of this rise reflected the addition of women who had not previously worked outside of the home to the work force. Clearly, lower average wages (with more women in the work force) and flatter wages were a big part of the change. The amount of debt we need to keep amassing to buy all of the goods we buy abroad is a problem, however, because we are not earning enough to pay the full amount of these goods.
A The increase started in the 1800s, as the use of coal allowed a reduction to the number of workers needed in farming, because it allowed more use of metals, enabled the use of electricity, and helped make farmers more efficient. Jobs migrated to China and to other countries with low energy costs (thanks to lots of coal in the mix) and low costs of A living, thanks in part to better solar heating. It increased again later, especially after China entered the World Trade Organization in late 2001. If world trade were, for some reason, interrupted or seriously scaled back, this would likely significantly reduce energy consumption (and employment) around the world.
Figure 4 and Figure 5 suggest that adding China to the World Trade Organization had far more impact, and in the opposite direction. Actual world carbon dioxide emissions from fossil fuels, as shown in BP’s 2012 Statistical Review of World Energy. The manifestation of this instinct tends to be greater as there is greater crowding, and greater competition for resources (Dilworth, 2009). Wage dispersion has tended to become greater since the mid-1970s, when we started encountering energy supply problems.
Job sharing has been proposed as a way of dealing with having an inadequate number of jobs in the older industrialized countries, but this tends to act in the same way (pushes the wages of lower-paid workers down, while leaving the top wages untouched).
Economic models seem not to take into account the very substantial shift in percentage of the population employed. This change will tend to push the percentage of population employed down further, all other things being equal. Governments in Europe are particularly affected now, partly because of the generous benefits they offer. For example, coal is not an option for running today’s gasoline-powered cars, and public transport is not an option in most of the US.
A Century of Change; the US Labor Force 1950 to 2050, inA Monthly Labor Review, Bureau of Labor Statistics, May 2002. But as countries begin to hit their peak in any one of these categories, can this relationship be changed in order to ensure a more sustainable economy? Total number of individuals employed in non-farm labour, and reported by the US Bureau of Labor Statistics, divided by US resident population, as reported by the US Census Bureau.
Employment is the total number employed at non-farm labour as reported by the US Census Bureau. We know that economic growth is tied to job creation, so it stands to reason that energy consumption would be tied to job growth. It also would seem to suggest that a shortage of energy supplies (as reflected by high prices) could lead to unemployment.
If we look at China’s fuel consumption by itself, we see that its huge rise in energy consumption (Figure 5, below) came mostly from increased coal consumption starting at that time. India also uses coal as its primary fuel, with 53 percent of its energy consumption in 2011 coming from coal (based on BP 2012 data). In fact the Rest of the World’s growth has been much faster for nearly the entire period shown on the graph. If we go back to the 1949 to 1972 time period, we also see a close relationship (R2 = 99 percent) between US energy consumption and employment, but it is a different close relationship than since 1982, (shown in Figure 2, near the top of this post). Jobs migrated to China and to other countries with low energy costs (thanks to lots of coal in the mix) and low costs of living, thanks in part to better solar heating.
If we truly wanted to reduce our energy consumption (which I doubt world leaders are really interested in), we could reduce world trade through taxes on imports, or some other mechanism.
Patterns in other countries are likely to vary, in part because of the different specializations (amount of services compared to manufacturing, for example) of different countries, and different wage levels in different countries.
Actual world carbon dioxide emissions from fossil fuels, as shown in BP’s 2012 Statistical Review of World Energy. For example, coal is not an option for running today’s gasoline-powered cars, and public transport is not an option in most of the US. She speaks internationally about oil issues, and writes frequently about the issue on her blog, Our Finite World and on The Oil Drum (where she is an editor). Recipient of the Nobel Memorial Prize in Economic Sciences in 2001 & the John Bates Clark Medal in 1979. He focuses on international business, international relations, investment and risk among all major advanced economies and large emerging economies. This decoupling (shown for the IEA New Policies scenario below) is generally viewed as a central part of the solution to the the sustainability problems we face in the 21st century. As an example, the graph below plots energy intensity in the US against the fraction of the economy dedicated to manufacturing (the balance being services), revealing a almost perfect correlation.
Developed nations, however, may be at the point where the economy is saturated with services, thus posing questions about whether these nations can further reduce energy intensity at meaningful rates. Several developed economies have recently managed to achieve this goal for the first time in recent history following a seemingly structural change in energy consumption patterns after the great financial crisis and the spike in oil prices.
However, as shown below, the US economy is the only one which managed to achieve any meaningful improvement in terms of per capita rate of production during this period. Overall though, the above graph suggests that US citizens are rapidly expanding the already large gap in living standards relative to their European and Japanese counterparts.
To summarize, when adjusted for inflation, current median household income in the US is at the same level as it was in 1995 – two decades ago! When looking at electricity consumption in the graph below, the trend becomes even stronger right across the 30 year sample period.
If it is really this difficult to achieve decoupling in nations enjoying decent standards of living, the world will need to quadruple energy consumption in order to bring the global population to current developed world standards.
Will the developed world be able to successfully decouple living standards from energy consumption? The Romans used banks and courts to impoverish then control people, for example ceaser owed so much money that he invaded Rome to avoid paying. The proposition is asinine, there has never been a recorded reduction in energy use in any surviving society. Now., its possible to have parts, even assembly wherever there was a hi-way, rail line or port. Graham also said President Obama is to blame for the current mess in Iraq and Syria, not former President George W.
No matter how often you cite the use of military force to “stabilize” or “protect” or “liberate” countries or regions, it is a destabilizing force. We like to think there are and we do many clever tricks in our ape minds to believe we have created efficiency and technology to decouple from the dirty expensive fossil fuels, pollution, declining ecosystems, and resource depletion. Our sophistication today with the deceptive psychology of marketing, photo shopping, and idea propaganda is no different. Over millennia, people learned to harness draft animals and to tap the resources of wind and water.
His steam engine was the first of several developments that would eventually displace the horse as the primary means of moving heavy objects over land and begin to free humans from backbreaking labor. In developing countries like India energy deficits are a cause for concern with dependency in energy imports expected to double.
Coal India (the country’s largest supplier) has signed up massive long term imports from countries around the world.
In 2007, the largest source of the country’s energy came from petroleum (40%), followed by natural gas (24%) and coal (23%).
Obama also called for 70% increase in funds allocation for federal research and development activities related to renewable energy. But it is imperative for large energy consumers to adhere to strict energy consumption norms. With India cocooned in a tropical climate year round and with other alarming issues, the effects of global climate change is not sending a death knoll. Energy consumption is the total amount of energy of all types consumed (oil, coal, natural gas, nuclear, wind, etc.), in British Thermal Units (Btus), as reported by the US Energy Information Administration. But I will have to admit that I was surprised by the closeness of the relationship for the period shown. Each laid-off worker would have used oil to get to their job, and this will no longer be required. If people’s incomes are squeezed by high oil prices, and some are being laid off, there will be less demand for homes as well.
A manufacturer with cheap electricity costs will have an advantage over one with higher electricity costs. In part, this is because energy from the sun provides much of the needed energy for heating homes, so there is less need for supplemental energy. Oil consumption also increased.A Nuclear and renewables are too small to be visible on the chart.
This can be seen in the energy consumption data on Figure 4, and the economic growth data on Figure 6. Also, as we will see in Figure 9, wages for workers were rising much more quickly (in inflation-adjusted terms) than they have been in more recent times. With the higher price of oil, salaries did not go as far, so having another family member working was helpful. But there were other changes as A well, including more imported manufactured goods, changes to fuels other than oil, and more efficient use of oil, all contributing to the differences we see between Figure 2 and Figure 7. Energy consumption from US EIA, number of non-farm workers from US Bureau of Labor Statistics. In fact, additional carbon taxes on goods that require high energy input may have encouraged competition in countries without such controls.
Fitted line is expected trend in emissions, based on actual trend in emissions from 1987-1997, equal to about 1.0% per year. The intent in the animal kingdom is survival of the fittest, with those at the bottom of the hierarchy being starved out, if there is not enough to go around. If there is a long enough lead-time and citizens can afford the transition, substitutions might be made, but it is not something we can count very much in the short term. S., Editor, Output, Employment and Productivity in the United States after 1800, National Bureau of Economic Research. If people’s incomes are squeezed by high oil prices, and some are being laid off, there will be less demand for homes as well. But there were other changes as well, including more imported manufactured goods, changes to fuels other than oil, and more efficient use of oil, all contributing to the differences we see between Figure 2 and Figure 7. The number of people employed would likely drop as well, although perhaps part of the difference could be made up by greater efficiency and by lower wages for individual workers.


If economists miss this change, as well as the fact that the percentage now seems to be headed down, their models will be wrong. Tverberg is also a Fellow of the Casualty Actuarial Society and a Member of the American Academy of Actuaries. Author of "Freefall: America, Free Markets", "The Sinking of the World Economy", "Globalisation and its Discontents" & "Making Globalisation Work". Submit your article contributions and participate in the world's largest independent online economics community today!
Note that the graph below uses NDP (Net Domestic Product) rather than GDP to better reflect actual production of useful goods and services (the primary difference between GDP and NDP is that NDP subtracts capital writedowns). As shown below (energy numbers from the BP Statistical Review), the US is also achieving rapid reductions in energy intensity and, although it still has some catching up to do, progress is better than in Europe and Japan. Businesses have been paying their workers a progressively smaller share of total revenue over the past three decades and using the resulting increasing profits to expand, pay more dividends and stockpile cash. Income inequality in the US is rising sharply once more, thus reducing median wages relative to mean wages.
In addition, one can argue that persistently low wages coupled with increasing inequality is an important part of the reason why US GDP could continue expanding while Europe and Japan stagnated. Modern republics don’t allow private armies (that was until iraq 2003), but they do use banking to enforce and control policy decisions, the problem is the creation of rival systems.
We can switch energy sources but so far it has always been to higher energy at lower input costs, We now face the event of lower energy produced, higher input costs. Of course, each shipment arrived at the dock in a truck which needed unloading by hand or forklift. But their growth is just monetary easing and that bears no relationship to any other measure such as energy per person. Graham outlined his plan to increase troop presence in Iraq by 10,000 if he were elected president.
We think we have endless substitution and technological innovation to overcome technological problems and resource depletion. In fact this is much more dangerous because often these modern tricks are used to control the population.
Humans in general believe in the immortality of the soul and by extension our human species in progress and growth. Even in antiquity, they attached sails made of cloth to wooden ships, enabling them to use the power of wind to propel them over water. Just four decades after Watt’s breakthrough, coal-fired steam engines were powering the world’s first locomotives in England and displacing sails on ships at sea.
While the transition of muscle power from humans to animals, the development of windmills and watermills, and the development of sophisticated sailing ships took place over millennia, the societal improvements delivered by fossil fuels came within a few generations. The country has five nuclear reactors under construction (third highest in the world) and has plans to construct 18 more by 2025. Energy Star, an international standard for energy efficient consumer products was pioneered in the US and adopted by countries worldwide. Bureau of Energy Efficiency is an agency created by the government of India under the Ministry of Power in 2002.
But for places where winters are getting severe and glaciers threatening to raise sea levels, mitigation of climate change and energy efficiency goes hand in hand.
For example, they may go out to restaurants less, make fewer long-distance vacation trips, put off buying a new car, or contribute less to their favorite charities. The jobs experiencing layoffs themselves may have required fuel use of various types, such as heat for buildings, fuel for airplanes, or electricity used in making new cars, and this is reduced as well. This lower demand can be expected to reduce housing prices, especially in areas where commuting distances are longest (and thus, oil use for commuting greatest).
As energy costs rise (as they have in recent years), they get to be more important in determining where manufacturing will be done. The rest of the world includesA China, India, Bangladesh, and many small countries, plus oil exporters, such as Saudi Arabia and Mexico.
A The Rest of the World slowed down a bit, but even during that period, its growth rate exceeded the best growth rate of the EU, USA, and Japan grouping during the 1984-2011 period (based on Figure 6).
The US became a net importer during this period as well, and thus began running up external debt (based on US Bureau of Economic Analysis data). It shows that energy consumption per employed person was rising prior to 1972, came down for a variety of reasons in the 1972-1982 period, and is now pretty close to flat (decreasing slightly). Businesses have worked hard to keep energy use down, because energy is a major factor in their cost structure. See also Smil, (1994) and Lebergott (1966).A  Later, women increasingly joined the work force, especially after World War II.
Furthermore, reduced oil consumption through, say, higher taxes on gasoline, left more oil on the world market, to be used by developing countries. It contracts in a way that leaves out those who were most marginal to begin with–such as employees of discretionary industries, and borrowers who could only barely make payments on loans (subprime borrowers), and countries with the highest energy costs. These large businesses have been increasingly favorably taxed, because they can choose tax havens around the world to incorporate.
The rest of the world includes China, India, Bangladesh, and many small countries, plus oil exporters, such as Saudi Arabia and Mexico. At the same time, a major effort was made to switch oil use to another fuel whenever possible. It contracts in a way that leaves out those who were most marginal to begin with–such as employees of discretionary industries, and borrowers who could only barely make payments on loans (subprime borrowers), and countries with the highest energy costs. Numbers are adjusted for purchasing power parity and inflation and were extracted from the OECD website. GDP (and NDP) are adjusted with time via the GDP deflator which standardizes the value of domestic production, while wages are adjusted using the core inflation which tracks prices of a representative basket of goods and services (local or imported). I think this comes from the recesses of our ape mind where we can convince ourselves everything is fine. Not all of this was wrong because there is something call connection to life and the ecosystem but many customs, traditions, or beliefs were based on this superstition and or magic. Immortality of the soul is a whole other subject but the immortality of our species is a farce. By the middle of the 10th century, the first watermills in Western Europe were grinding grain and were also being used for dyeing, forging, and pressing, a crucial turning point in the economic development of Europe.
The modern forms of commerce we enjoy today, with all of its benefits for our quality of life, find their roots in Watt’s ingenuity and the use of fossil energy. As late as 1870, draft animals (mostly horses and mules) were the prime movers in the United States, but had all but disappeared from the streets of cities and towns along with their manure and the need for agricultural production dedicated to feed them – by the 1940s. The nuclear disaster in the Fukushima nuclear plant has brought to attention the importance of strict safety measures in extracting power using nuclear means.
Nevertheless America depends on gasoline for a huge part of its domestic and industrial activities. Since energy independence translates to political stability the government and the people are unified in the nation’s mission.
It is even possible that the Kyoto protocol (which the US did not sign) has something to do with what we are seeing. There are also likely to be layoffs in the construction industry, as there is less demand for new homes and new buildings of all sorts.
Although I don’t break it out separately on Figure 4, the increase in energy consumption since 2002 has been especially marked in Asia. There was great demand for more fuel-efficient cars, leading to the import of cars from Japan (a country that had been making smaller cars for years), and the down-sizing of US cars.
For example, we read about airlines retiring their less fuel-efficient jets.A Thus, even though energy consumption divided by number of workers is flat or trending slightly downward, our standard of living has risen considerably since 1970 or 1980. Employment is reduced, and unemployed people tend to move in with friends or their family, to cut expenses. All of these changes tend to concentrate wealth at the top, in large companies and in the wealth of high paid workers.A Perhaps all of this is a coincidence, but the timing is striking.
Although I don’t break it out separately on Figure 4, the increase in energy consumption since 2002 has been especially marked in Asia. Electricity generation was switched to include more coal and nuclear (based on EIA data), and to remove production using oil. This trend implies that the cost of living has been increasing faster than the cost of domestic production.
We do the same today with the pseudo-science economics and goal seeking manipulated scientific results.
And by the end of the 12th century, windmills had become so important to the economy in Europe that Pope Celestine decided to tax them. Ironically, it was Watt who coined the term “horsepower,” which he used to describe the new unit of measure his innovation had made possible.
Electricity, essentially absent from the daily lives of Americans in the 1880s, was widespread in offices, factories, and homes a few decades later, allowing light to displace the dark and the productive day to be lengthened.
The reluctance and resistance in opening Kudankulam nuclear power plant in the southern state of Tamil Nadu has also left Indian government officials wary and vigilant of aggressively pursuing additional nuclear power plants. It has 104 commercial nuclear reactors but the demand for nuclear power is softening (largely because of cheaper natural gas). Most Americans also miss the fact that it’s biggest companies hide profits in economies outside the US.
We try anything to believe we are progressing into a brighter future, adapting, and transcending our environment.
Life was made easier for people on Earth by such uses of renewable energy, but life changed very little; the overall human condition remained the same for two thousand years. Horsepower, as defined by Watt, was the work done when a horse lifted a 550-pound load of water or coal out of a mineshaft at a rate of one foot per second.
India imports a major portion (73%) of its crude oil but exports 30% of refined petroleum products.
After the 1973 oil embargo left the US vulnerable to oil rich countries the Department of Energy has stepped up conservation and alternative approaches to energy production. Many US firms operate in Europe and Asia but the profits of US firms created in these regions is exported. ONGC (state owned) has come under diplomatic tensions for having signed trade pacts with oil rich countries like Sudan, Syria, Iran, and Nigeria. The primary role of women was to produce many children whose backs would also be used for labor…if they survived. India is also keen on limiting its dependency on OPEC countries by a massive domestic hunt of oil resources. Well it should be clear that money is only a human projection of a media of exchange, and that all we really do is exchange energy. The product of energy-laden plants that died millions of years ago and lay crushed beneath layers of dirt and water where heat and pressure did their magic, coal became the driving force behind the Industrial Revolution of the 19th century.
Rapid economic expansion, severe bureaucratic involvement and iron hold of private companies affect the energy sector in India immensely but a new majority government and India’s enthusiasm towards renewable and alternative sources of energy will provide a saving grace. The industrialization made possible by coal, the first of the fossil fuels to come into widespread use, was a watershed social and economic development. The growing use of fossil fuels, notes the US Energy Information Administration (EIA), “freed human society from the fluctuations of natural energy flows by unlocking the Earth’s vast stores of oil, coal, and natural gas.
Efficency in the economy has another name, productivity, it is called that because it translates into profit directly. Productivity is subject to the law of diminishing returns, as with all things the US led the way with exporting jobs to lower cost zones during the down turn reducing cost but getting more back due to productivity gains. These profits are now being used on paying debt and taking low risk low return investments, that’s going to be trouble ahead as well as the profits in these dry up you face 2 choices, go riskier or deflate the economy by temporarily hiking interest rates and causing misery again. Deflation in this scenario is the central banks enemy because the system needs believers and risk takers so they will encourage risk, and that’s why the markets keep rising.




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