Here's an interview with economist, Enrico Moretti, about the geographical concentration of growth in the newer industries such as information- and bio-tech. It reinforces my view that more growth in these areas will not easily spread to greater prosperity for the population as a whole. At least, in the present climate of unquestioning belief in "intellectual property rights" the benefits of growth in these technologies does not spread widely.
In the case of companies that use a lot of energy or other natural resources to manufacture large heavy products there are advantages to spreading production over several sites scattered around the nation or the world. If a company only uses human resources and its products are digital or pharma or knowledge then there is nothing to prevent all the value from being created in one small site.
Science is slowing: sustainability can replace it as the engine of economic growth.
This book is a radical manifesto for the transition to sustainable energy as a remedy for most of the world’s ills: resource depletion, low growth, inequality, dysfunctional globalisation, and yes - it cures climate change too.
Everyone knows that science and technology are accelerating exponentially - or are they? They certainly raced ahead from the renaissance up to modern times, but if the engine of science stalled who would be the first to notice? And would they tell or keep quiet? This book argues that progress in applied science has indeed slowed but the signs of distress are confused and are coming from economic indicators like productivity, growth and interest rates. Scientists do not want to see what is happening, while economists see the problem but do not like to attribute it to science.
Paradoxically, another threat may be just what is needed to restore a sense of progress to society. Resource depletion and global warming also demand a change of direction. If we make this change now, through rapid investment in sustainable energy technology and infrastructure, we can avoid global warming, reduce the risk of resource wars and buy time to adapt to a low growth economy.
The situation today is complicated by the fact that three unrelated things are happening at the same time. Firstly, the slowing of applied science is reducing the rate at which new tangible products are becoming available to consumers, which slows economic growth. Secondly, the rise of the new information-based technologies has created strong "network effects" in economists jargon, meaning that what little growth there is, is concentrated in a few large multinational companies that employ relatively few people. Finally, the moment has come when the transition to sustainable energy can be delayed no longer. However, there is a silver lining to this trio of storm clouds. Making the energy transition requires a lot of new infrastructure, new house building and renovation - activities that are hard to automate, which will absorb a lot of work-hours and where well-understood economics still applies.
This conjunction of unrelated issues will require exceptionally clear sight over a wide field of view to find ways round and through the problems. So long as scientists, economists, philosophers, historians and storytellers all stay in their separate domains of expertise it is no surprise if the general public and their political representatives also keep their ideas in separate mental boxes and never make the necessary connections.
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