Sunday, July 6, 2014
How a National Green Alternative Energy Policy Can Destroy Your Social Security Benefits as it Corrupts the Efficiency of the Market
How a National Green Alternative Energy Policy Can Destroy Your Social Security Benefits as it Corrupts the Efficiency of the Market The Obama National Energy Policy Directive May Have Direct Effects on Thing You Might Never Expect Including Your Health Care Lex Loeb Contributor Network . You might never believe it. Your government social security and health benefits maybe directly linked to the cost and the availability of energy resources. People seem to think in little boxes where there is a separate box for the economy , a separate box for the wealth of the country , a separate box for energy policy that they have linked to the green save the environment box. Things may seem a lot more complicated with all the separate boxes than it would if you really did not have to think about any of it. One way not to have to bother thinking about it is to let the free market do the thinking for you. Not everyone trusts the free market because the human mind does not like to feel that nature and random patterns can do better than arbitrary human thinking. Unfortunately 100 percent of government planned economies that discounted the value of letting the market work have failed. Still human ego tells us that we should be able to do better than random chance and then we add super computing power and still are unable to compete with the ability of a free market to generate wealth and more fairly allocate it. There is always someone at some university with a giant brain cavity and a high IQ who is certain that random chance in free market is not as intelligent as they are and then we elect a president who makes them an economic czar of some kind and everything goes to hell in the economy as a result. Calls for a national energy policy and calls for more government control of the entire economy are constantly coming from the high octane think thanks in our best universities. The free market beats them every time. We now only have to look at the immediate success of China after adopting free market principles and getting government out of the way of their economic potential to see what is possible. China went from a basket case communist ego controlled economy of a billion impoverished people to a nouveau riche economy in less than 30 years. It is now on it's way to become one of the world's greatest engines of all time, a fully developed economy with a billion of the wealthiest people on earth. Communists can take all the credit they want to for the success but the reality is the re-introduction of the free market is what did the trick. How does alternative green energy policy have anything to do with a decline in your social security benefits or your wealth in general? It actually does have very direct consequences. You only have to look at how President Obama has managed in the span of his first two years in office dislocate the full benefits of the energy free market and society. Here is where you start to understand the connections: Lets say that in the year 1845 that there were 50,000 horses living in the New York City Metropolitan Area. How much Horse Power did New York City have then? Well assuming all the horses were healthy and fully productive exactly 50,000 horse power. Can you imagine New York City running today with that amount of energy for all of it's transportation needs and none of the rest of it's energy needs? Petroleum , natural gas and coal came along as means of giving the city of New York vastly more horse power than it ever imagined possible and the economy of the city like the nation and world took off with fuels that could make machines work almost effortlessly at relatively low cost. The original costs of a lot of fuels like petroleum gas and coal was just in the extraction and transportation costs. A gallon of gasoline, depending on the efficiency of a machine using it as fuel or to produce heat. renders as much as 49 units of equivalent horse power as a rough calculation . The lower cost and "freer" the energy that can do work then we see the more benefit accrues to the wealth of an industry or an economy as a whole. There is no exact horse power equivalent to a gallon of gasoline until you convert it to the time you run a horse to produce an equivalent number of calories or British thermal units of heat used per gallon of gasoline or diesel or some number of cubic feet of gas or coal. The less expensive the energy the more benefit an economy can derive from it to grow wealth and progress. This is one reason that if you look at Chinese energy policy and compare it to the green energy initiative in the US you can see the Chinese government is thinking correctly in making certain that excess electric power will be available building a variety of different kinds of power plants and US thinking is all wrong in counting green economic externalities as a means of formulating economic policy here. Better than both Chinese and American models is super low cost almost free energy policy because the more power online the more work gets done the more wealth is produced and it is wealth that is the key stone of how social security is supposed to work. Wealth has to be generated in order for people to be able to pay into the system and that also happens to help pay for benefits like heath care pubic and private. Excess capital does have to go from basic production to industries that provide health care services. There is a connection that is not always so obvious. There is a direct connection when President Obama shuts down the gulf of Mexico to gas and oil drilling. There is a connection when oil prices rise and the US is forced to import vast quantities of fuel from Canada , Mexico and Venezuela because we are not allowed to tap our own to supposedly save the environment. We wack their environment with no lasting harm and ours remain pristine as the net per unit cost per energy goes higher and higher eating up a larger percentage of personal income ,wealth and savings. The green environmentalist theory is that clean energy , according to what they say is clean one day or the next and is always changing, is that it comes with added benefits to the vitality of the environment. The market may be saying otherwise. The market is saying that energy that can sustain the real economy and the machines now in existence that are the backbone of the economic production and general wealth in society require efficient energy which is much much lower in cost per unit because when energy becomes so expensive that it rivals the wages of laborers it means people will have to actually physically work harder to maintain their income and wealth. That is not a pretty picture if you want to be able to compete with China in the future. You can come to the erroneous assumptions and conclusions that the poor Chinese workers are getting ahead because they breath in so much pollution we don't have to and they are all going to live shorter diseased lifespans or die from cancer but that is not necessarily born out by any data. Yes the Chinese are willing to suffer the effects of pollution we don't have to but they can afford to spend money on devices to prevent a lot of it but rather prefer owning US treasury notes instead of paying for the technology with is quite a bit of planned economy nonsense in it's own right. Having a link between the amount of work laborers have to do and not have to do because of the free energy on tap---free meaning low cost to employers so it is a discounted cost also means that workers get paid less because more money has to go to pay for energy to do work. That is one major reason why having a president who believes that higher energy prices are good for the economy because it will give "incentives" to use alternative clean forms of energy is all washed out and ridiculous! High energy costs are a disincentive to employers and to workers. Workers get hit more than one way . First they too consume energy to heat and cool their homes and to transport themselves and goods and services for their own use. Second they find that the high energy costs make it necessary for their employers to decide whether to cut back on human work or to cut back on what should be free energy on tap or to rehire worker or even horses to do physical labor because the President of the United states and his university born czar of crazy is anti market oriented. As budgets have to adjust in percentage to pay for higher energy cost per time unit of use then that eats away at income that can be saved. It also cuts into what government can derived though taxation as they are depended on a percentage of income or of wealth in terms of property assessments. The more work that is done in an economy at a lower price the more production that results from which more money can be sent into the government as tax on the whole. When the government hurts the people in making their energy cost more they also end up costing themselves. This then directly goes to the heart of funding for social security and health care with or without government being involved. Government should have learned already that free energy on tap is the difference between a developed economy and a third world economy and that freer free energy is the difference between a super developed economy and a less developed economy. It makes all the difference that energy is as cheap as it can be with the net results being disastrous to the economy as a whole when government decides that higher priced energy is the better deal when the market is signaling NO with ever high unaffordable prices for work energy and per British thermal unit. Making inefficient alternative energy possible yes but making the economy poor. What can government do? Well government has to shed the popular religion and rethink what it means being green. Once the whole landscape is covered with towering wind turbines and solar panels as far as the eye can see in all directions there won't be room for range or forests. It takes a huge amount of space. We also don't want to collapse our population with a genocide to produce some desired result. There is no evidence that that is any kind of solution either. Higher populations serve us in giving us one real genius for every 100,000 people and suppose we need more of them to compete with the free market. The more people the more geniuses and the more solutions to all our problems? We also forget that this country once had over 50 million buffaloes roaming and then nearly as many Beavers they exploited the environment too didn't they and they had no clean cities with sewage systems. Government has to look to give some seed funding to real energy alternatives that seek free energy. They could do this by giving grants to have rock borers drill subway size tubes under Mt Saint Helens and Mount Rainier and Shasta to see if it is possible to get free energy out of places where we know it already exists. The is a level just below grade below these volcanoes where the heat rises spectacularly and is slowly discharged into the environment. The theory is that there is a grade level below the surface just like what is found in Iceland where geothermal energy is free energy and totally efficient. Unfortunately the environmentalists won't ever let the obvious happen because volcanoes are all protected national memorials. In a free market there is no doubt that we would see high tension power lines radiating out from volcanoes as a viable alternative to gas , coal and petroleum. As President Reagan said government is the problem and not the solution. You just go back to horse power in cities before electricity and gasoline and then start replacing the horses and the wealth of society miraculously appears that was never there before just the way we see it happened today in China and India as if by magic. We need a lot less government thinking about problems and a lot less government solutions and a lot more of the magic of the free market place and yes your social security provided by the government or by yourself will depend on it. Don't believe me ? Shut off your electricity to your home collect firewood to burn to heat your home and ditch your car and buy a horse ...make it a green horse and imagine that you are wealthier than before. Oh remember you have to feed the horse and either buy or collect your own firewood. I have been a farmer I know that collecting firewood is not as easy as it sounds nor as efficient with one's time as just buying power on tap and horses well they eat a lot and take a lot more care than that. A farmer know a lot of his time is spent maintaining the horse. That could be true of a car too. .