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PaulS's picture

The New Capitalism

Much of this analysis is entirely correct and to the point,
This is a typically 'specialists' view, economist on this occasion. Therefore only economic influences are considered.

However, if you now add to the analysis the imminent decline in oil production and realise that Growth over the past century and a half of the whole world economy is dependent on oil as a source of cheap energy, what do you get?

You get a long term economic decline, not stabilisation, at least to a level of 40% of current energy consumption, a level that renewables may be able to provide and thus stabilise the world economy. However, I would not hold my breath for that. I estimate that will take 30-40 years (at a decline rate (='negative growth') of 3-4%).

Perhaps our grandchildren will be able to enjoy that stability.