Tuesday, February 26, 2013

Why the economy can't recover

We have a multi-trillion-dollar-fixed-capital, consumer-product-based, cheap-liquid-fuel-dependent system, autosprawl, that is beyond unsustainable, but still growing.

Austerity is not even an economic theory, rather just a grab for physical and social capital, so, no need to waste ink debunking it.

But what about growth? Why is money-printing not working? Because billions for road building and auto bailouts are speeding us in the wrong direction.

Cheap oil peaked in 2005. Every day the mix being sold is lower in net energy. Alternative fuels are even lower, have many problems, and cannot fill the liquid pipeline.

We can turn this ship around. Make public transit fare-free in your town or city. Gradually eliminate the private auto. This will lead to walkable, bikeable, urban life. Cities will be attractive and suburbs can become organic farms. If the savings are used for health and education, the birthrate will drop. We won't stop the collapse of capitalism, but we can ease the pain.

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