Tuesday, October 6, 2009

GDP Growth and Energy Efficiency in the US

Doomsayers are wrong, and have always been wrong. They've also been always popular, but popularity never made anyone right, in this case for a simple reason: market economies are much more efficient and "smart" at finding solutions to social problems than their vain philosophies allow them to comprehend.

Carpe Diem brings us the amazing graph below, which shows how growth in the US during the last sixty years has normally been accompanied by significant improvements in energy efficiency. This should be no surprise to owners of a working economic brain: economic growth is the result of productivity gains, and productivity is the production of more with less. I'd say: doomsayers be doomed.

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