Dec

7

 Basic economic theory, Marxist, Hayekian, Ricardian, are all in agreement that rich countries should benefit from explosive growth in poorer countries even if they are becoming relatively poorer due to comparative advantage. And in that vein, all readers can rest assured that global energy use (of exclusively fossil fuels even) has been going up very evenly per capita even as the population has exploded.

Stefan Jovanovich writes:

People trading freely with one another, within one country and across borders, benefit from comparative advantage; in a world of administered currencies there is no proof that "explosive growth" benefits anyone since it involves the fundamental mispricing of resources that Hayek found so dangerous. Global per capita energy consumption has grown, but its growth has been anything but "even". Energy consumption per capita was LOWER in 2000 than in 1990.

This reader remains assured that the vanity of unquestioned aggregation is the one vein whose reserves are never exhausted in the mines of economic theory.


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