Friday, November 29, 2013

To understand economics, understand demand

There are two parts to the problems we face. One, fossil fuels have high net energy. Two, how we have used that energy. The second is more important.

We have not allowed for the full cost of fossil fuels. Much profit has been made, but the consequences are now coming due. We have created a monster of demand with seven billion people all wanting to live in a leafy US-style suburb.

The problem is not net energy, the problem is not supply. The problem is demand.

How can we reverse the process? Instead of facing the tsunami head-on, let us divert it. Give people carfree cities. With the money saved by abolishing cars, educate all children and provide health care. Birth rate will drop.