What if our economic woes were really about something we can’t bear to consider?

What if our economic woes were something symptomatic about a deep dysfunction many Americans refuse to contemplate. What if Thomas Friedman has it about right when he suggests that our infinite growth model inevitably leads to environmental/economic hell?

Let’s today step out of the normal boundaries of analysis of our economic crisis and ask a radical question: What if the crisis of 2008 represents something much more fundamental than a deep recession? What if it’s telling us that the whole growth model we created over the last 50 years is simply unsustainable economically and ecologically and that 2008 was when we hit the wall — when Mother Nature and the market both said: “No more.”

We have created a system for growth that depended on our building more and more stores to sell more and more stuff made in more and more factories in China, powered by more and more coal that would cause more and more climate change but earn China more and more dollars to buy more and more U.S. T-bills so America would have more and more money to build more and more stores and sell more and more stuff that would employ more and more Chinese ...

We can’t do this anymore.

Continue ReadingWhat if our economic woes were really about something we can’t bear to consider?

How (corn) ethanol kills: a lesson in basic economics pertaining to fuel supply, fuel demand and price.

In an earlier post, I argued that people need to better appreciate that dollars are fungible (see here  and here).  Why is it important to understand that dollars are fungible?  A case in point is the new American enthusiasm for turning food into fuel. Consider this report from Fortune Magazine:…

Continue ReadingHow (corn) ethanol kills: a lesson in basic economics pertaining to fuel supply, fuel demand and price.