Reblog: Grossly Distorted Prosperity — Surplus Energy Economics

Date of Source: 30 Oct 2016

Summary:
ECONOMIC DECELERATION – AND HOW TO MEASURE IT One of the quirks of economics is that, within GDP (gross domestic product), all output is included, irrespective of what it really adds to prosperity. GDP, like Oscar Wilde’s cynic, knows “the price of everything, but the value of nothing”. If government paid 100,000 people to dig […]

Editor’s Analysis:
This is a compelling Malthusian post on the “end of real growth” which argues for measuring the real economy in terms of energy surplus. Having just discovered this blog, I am already convinced that the author, Dr. Tim Morgan, is certainly an intellectual rival to Our Finite World’s Gail Tverberg. But even though they hold diametrically opposing views on energy as currency, they both agree that real wealth is a function of finite resources. His principle argument goes as follows: in the past energy surplus and GDP growth were essentially the same equation. However, in more recent years, that trend comes apart as the cost of energy as a proportion of GDP has skyrocketed. In other words, recent fiscal growth is essentially a theft on real growth.

Blog Post Source: Tim Morgan. Grossly Distorted Prosperity — Surplus Energy Economics. Reblog. 30 Oct 2016. Original content accessible: https://surplusenergyeconomics.wordpress.com/2016/10/30/80-grossly-distorted-prosperity/


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