The purpose of this blog post is to examine and present the relationship of the economy, energy and environment and how the three are interconnected. Most of this blog will be focusing on the presentation made by Dr. Chris Martenson who is a trade research scientist.
At the first sight, economy, energy and environment doesn’t seem to be related as much. However, if we think more critical, as Dr. Chris Martenson did, we will be surprised how related these terms are and how their interdependence make the world that we know today. In the same manner, Withgott and Brennan argued: “Economic activity uses resources from the environment”[…] “When it comes to the energy, economists tend to do the so called cost-benefit analysis. Estimated costs for a proposed action are totaled up and compared to the sum of benefits estimated to result from the action”.(148,149) In other words, if the amount of energy we use to get the resource is high, the amount of the energy that we get is lower. This is due to the fact the resources are scarce and that we need to go deeper in the ground in order to get them. However, this doesn’t solve our problem with non-renewable resources and we will be getting less and less energy every year. In this sense, as Withgott and Brennan wrote, “We have to be more energy efficient. This will give us the ability to obtain a given result or amount of output while using less energy input.” (555) This is to say the only solution that we can come up with in order to increase the amount of energy we use and delay depletion of particular resource. (1)
Chris Martneson is born in 1962 and he is a former biochemical scientist and an author of trend forecast regarding the economy, energy and environment. Chris obtained his Ph.D. in neurotoxicology from Duke University in 1994. I believe that he has great experience in the field and that he is trust worthy.(2) You can read more about Dr. Chris Martenson here. (3)
In addition, one of the most famous presentations given by Dr. Marteneson is “The Crash Course” where he talks about economics, energy and environment. You can watch the full video here . (4) Or read the summary and discussed parts of the video below.
The Crash Course video seeks to provide us with a baseline understanding of the economy so that we can appreciate the risks that we all face. In the first few minutes of the video, Dr. Marteneson is trying to prove to us how economics and environment are connected by referring to the Deepwater Horizon oil spill. After making this point he goes on by connecting together all three- energy, economy and environment. As we know economies work based on the energy/resources that we get. If we were not to have energy there will be no economy, as he emphasized. Since we do have the energy that we exploit, environment becomes important factor in this triangle. Throughout the video he is talking about all three E’s and introduces some new terms such as the concept of all the money is loaned into the existence. In the end, Dr. Marteneson makes a reference on our future and possible outcomes if we don’t come up with possible solutions for sustainability problems that we face.
One of the concepts that Dr. Marteneson emphasized is the concept of all the money is borrowed into existence. The figures 1.1 and 1.2 depict how the money system is growing with the population and the difference between actual money and debt. The concept of all money is loaned into the existence means that there is always more debt than money in our economies. For example, only in the US there is 53 trillion dollars of debt, with only 14 trillion of money. You can watch more about this here
Furthermore, Dr.Marteneson claims that he can define economy based on the figure 1.3. According to him economy must grow. By must grow he means that economy is really happy when it is growing and pretty unhappy when it is not.
What is even more interesting, there is no negative word for the situation when our economy is not growing. In both cases we say that economy is positively or negatively growing and 2% increase or decrease does make a huge difference. Considering the figure above that states that economy must grow, we can say that this is important for functioning of the global society. However, the graph on the right side depicts how much people can be supported under the cap and if we know that number of people on earth is constantly growing we can conclude that there is a big problem with resources that will be available for this number of people.
In addition, the figure 1.4 shows what amount of energy is used to get energy throughout the years. Using up more energy to get new energy, and according to Martenson if a unit of energy is required to take out another unit then there will be no energy. This is a huge problem that we are facing and a good example is the energy that we use to get oil, as depicted on the figure below.
As we can see, as we were going through time and as we were using more and more of our non renewable resource, we needed to use more energy to get less. This is to say because there is less and less oil and it is located on the places where it is hard to get. If you are interested in more details, follow the link. (5)
In the video below you can see very interesting anecdote about exponential growth by Dr. Marteneson. Basically, here he is making us imagine that we are hand cuffed in the top row of Wembley Stadium. His question is if you put one drop of water on Wembley Stadium and the drop of water doubles every second how much time do you have before the water comes to you and you drown? The answer is 50 minutes! But the important question is at what point the stadium was 97% empty and the answer is at 45thminute! He provided this anecdote because he was trying to explain what happened with human population. Until 1960 we had only 3 billion people and by 2011 we have 7 billion people living on earth.
(5)
Consequently, with exponential growth we are using more resources. The figure 1.5 depicts how much resources are we using compared to 1920 and how extinct the species became since then.
As we can see on the graph we are using all the resources available more and more. The only question is until when? And this is very important according to Dr. Marteneson . Since our resources are limited we will have to come up with alternative solutions because the consumption of the current ones is very high and we will run out of many of them in near future.
To sum up, Dr.Marteneson made quite a few good points and I believe that he succeeded in the message he was trying to send. As pointed out by him, economy can not exist without energy and energy can not exist without environment. Thus, the three are dependent on each other and we have to do everything we can to preserve all three of them. However, this is not going to be easy considering the ecological footprint that we are imposing on the environment and the depletion of resources that we use to run our economies. Therefore, it is crucial for us to come up with some sustainable and alternative solution if we want to meet our future needs for our future generations. We are in situation we are and we have to fight for the society if we want to see the future of the world. This is not going to be easy, but if we give our best we won’t be sorry even if we fail.
References
(1) “Chris Martenson, The Crash Course Cape May Forum.” Chris Martenson, The Crash Course Cape May Forum. http://www.capemayforum.org/chris_martenson_2012.html, n.d. Web. 07 Dec. 2012.
(2)“Green Energy Blog.” ‘Green Energy Blog’ N.p., n.d. Web. 07 Dec. 2012.
(3) “Christopher Martenson.” Wikipedia. Wikimedia Foundation, 12 June 2012. Web. 07 Dec. 2012.
(4)“The Crash Course.” Peak Prosperity. N.p., n.d. Web. 07 Dec. 2012.
(5) “Part 2 of 6-UK Crash Course.” YouTube. YouTube, 22 Nov. 2010. Web. 07 Dec. 2012.