Laughing all the way to the cliff……

23 05 2014

Pope Benedict is quoted as having written “The promise was that when the glass was full, it would overflow, benefiting the poor. But what happens instead, is that when the glass is full, it magically gets bigger”.  This prompted in me memories of my youth when we were promised so much technology, none of us would have to ever work, because technology would replace labour, giving us limitless leisure time.

So what happened?

Money got in the way.  Sure, robots can build cars.  Yes, gigantic combine harvesters can cut thousands of acres of wheat (and it’s only a matter of time before they do this without a driver, like the mining industry is introducing driverless Tonka Trucks).  Even ‘checkout chicks’ are being replaced with infuriating self checkout lanes……. Then we have those even more infuriating robotic answering services which Jim Kunstler recently had this to say about:

Robot phone answering systems also allowed corporations to off-load the cost of doing business onto their customers, mostly in the form of wasting vast amounts of their customers’ time. Included in the off-load was the cost of paying receptionists (as telephone answerers used to be quaintly called) and all their medical and retirement benefits — just another manifestation of the vanishing middle class, by the way, since a lot of women used to be employed that way (let’s skip the gender equality side-bar for now). After a while, the added privilege of companies being able to evade responsibility for their actions hugely outweighed the cost-saving advantage of firing some lower level employees.

Trouble is, robots don’t buy cars, harvesters don’t buy bread, and computers don’t buy groceries……  Money buys those things.  So the providers of money had no choice but to keep us all enslaved using ‘Labour Productivity’ to ensure ‘we’ could earn the money to buy the stuff made by the technology that displaced our jobs.

The result is that today’s largest sector of the economy is the financial one.  For at least twenty years, we have been encouraged – dare I say browbeaten? – to borrow ever more money to buy stuff we don’t need and which won’t last, to impress people we don’t know or care about, creating mountains of waste and oceans of plastic……

Remember those..?

Speaking of plastic, I reckon it all started with credit cards.  I remember getting my first Bankcard in the late seventies.  What an innovation that was.  How primitive they were compared to the current ‘paywave’ technology!  The card had to be put in a machine that used the raised characters on the card to make carbon copies of your details, then you had to sign the form, all in triplicate…  can you imagine the fuss such a thing would cause in a modern supermarket queue?

I can’t remember what my credit limit was back then, but it wasn’t thousands of dollars, I’m sure of that.  And you wouldn’t pull it out for any old transaction, because you were still paid in cash back then……!  Yes dear reader, cash…  The paymaster would come to your desk with a tray full of brown envelopes with real money in them and a pay statement.  One of those envelopes had your name on it, and you had to sign a form saying you’d received it, and you counted your cash (including the coins!) to make sure no one had made an error.  But when computers came along, all those people lost their jobs, nobody was needed to count your money anymore.

I know I’m showing my age now.  And feeling all nostalgic about the good old days when petrol cost fifty cents a gallon, when the Club of Rome had only just published its Limits to Growth Report, and everyone just decided to ignore it, because 2020 was so far into the future, it would be someone else’s problem.

We all thought we were laughing all the way to the bank back then……  but little did we know we were in fact laughing all the way to the cliff.

Everything, and I mean everything today is about money.  Nobody ever does anything anymore unless there’s money to be made.  They’ll even do useless things, unsustainable things, unethical things, immoral things, unbelievably stupid things….. just for the money.  Even the government’s onto it.  If there’s money to be made, they’ll throw the poor, the sick, the elderly, anybody who can’t grow the money pile, onto the shit heap we call the economy.  What are they thinking?  How can greed take over like this?  How on Earth did the Australian people get sucked in by the lies this current government were proliferating before the election?  And then elect the worst government in all of human history?  Well, alright, Hitler was worse…….  but just give these bastards a chance to catch up.

Yes, you’ve worked it out……  I despair.  See you on the edge of the cliff.

PS.  Did anyone else see this momentous piece of news about tight oil in California?  I haven’t laughed so hard in a very long time…..

In 2011, the Energy Information Administration (EIA) of the US Department of Energy commissioned INTEK Inc., a Virginia-based consulting firm, to estimate how much oil might be recoverable from California’s vast Monterey Shale formation. Production of tight oil was soaring in North Dakota and Texas, and small, risk-friendly drilling companies were making salivating noises (within earshot of potential investors) about the potential for an even bigger bonanza in the Golden State.

INTEK obliged with a somewhat opaque report (apparently based on oil company investor presentations) suggesting that the Monterey might yield 15.4 billion barrels—64 percent of the total estimated tight oil reserves of the lower 48 states. The EIA published this number as its own, and the University of Southern California then went on to use the 15.4 billion barrel figure as the basis for an economic study, claiming that California could look forward to 2.8 million additional jobs by 2020 and $24.6 billion per year in additional tax revenues if the Monterey reserves were “developed” (i.e., liquidated as quickly as possible).
 
We at Post Carbon Institute took a skeptical view of both the EIA/INTEK and USC reports. In 2013, PCI Fellow David Hughes produced an in-depth study (and a report co-published by PCI and Physicians Scientists & Engineers for Healthy Energy) that examined the geology of the Monterey Shale and the status of current oil production projects there. Hughes found that the Monterey differs in several key respects from tight oil deposits in North Dakota and Texas, and that currently producing hydrofractured wells in the formation show much lower productivity than assumed in the EIA/INTEK report. Hughes concluded that “Californians would be well advised to avoid thinking of the Monterey Shale as a panacea for the State’s economic and energy concerns.”
 
On May 21 the Los Angeles Times reported that “Federal energy authorities have slashed by 96% the estimated amount of recoverable oil buried in California’s vast Monterey Shale deposits, deflating its potential as a national ‘black gold mine’ of petroleum.” The EIA had already downgraded its technically recoverable reserves estimate for the Monterey from 15.4 to 13.7 billion barrels; now it was reducing the number to a paltry 0.6 billion barrels.
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4 responses

23 05 2014
lemmiwinks

Remember the old click clack machines? Hell, I used to use them when I worked in retail! They were on the verge of extinction then though, I’m not *that* old 😉

23 05 2014
Mia

Had a similar discussion with some work colleagues the other day. I rarely talk doom with people, but it seemed they were in the mood after the budget so I added a bit more fuel to the discussion. We were talking about how there isn’t enough work to go around and I said an easy solution is for everyone to only work 3 days a week and then everyone would have a job. Of course, that would be a paradigm shift because we couldn’t then afford all this consumer stuff. Who wants leisure time when there is the need to buy more stuff? TIC

23 05 2014
mikestasse

Indeed, and if we cancelled the debts, then everyone would probably only need to work one day a week….. and the economy would collapse, which is what we need to put an end to emissions. It’ll happen, but not willingly…

25 05 2014
David Hamilton

I don’t think everything is about money. This weekend, for example, I spent both afternoons sitting in a cold church rehearsing for a performance of “Juditha Triumphans”, an oratorio by Vivaldi. There were 8 string players, 5 wind players, a keyboard (continuo) player, a timpanist, the conductor, 5 vocal soloists and a choir of between 20 and 30 people. None of us were being paid; the choir members probably pay to be a member, in fact. We do it because we love it, and because where else would we get an opportunity to play a Vivaldi oratorio? It not just musical people who do this sort of thing – look around and you will find all sorts of people doing all sorts of stuff because they love it, and often it will cost them, rather than pay them. Talk to them about what it is they love doing, and their faces will light up and you will see what these activities mean to them.

The problem is that these activities and the passions that drive them do not exist in neo-classical economics, which is all about money. That would be OK if economists were just some obscure group of academics who wrote papers, went to conferences, and spent most of the time arguing amongst themselves; the trouble is that economists have real policy clout and are deferred to on a whole range of policy matters. Find almost any government advisory committee and you will find some number of economists, regardless of the topic.

As well as the high priest like cult of economists as being instant policy experts, the problem with neo-classical economics, of course, is that it is simply wrong. It’s wrong on most things, particularly the things that are important to most people – like being part of a performance of a Vivaldi oratorio.

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