Why it (sort additional ways to make money of) makes sense for the us to impose tariffs our finite world

In this post, I will explain what is going wrong and how donald additional ways to make money trump’s actions fit in with the situation we are facing. Strangely enough, there is a physics aspect to what is happening, even though it is likely that donald trump and the additional ways to make money voters who elected him would probably not recognize this. In fact, the world economy seems to be on the cusp of additional ways to make money a shrinking-back event, with or without the tariffs. Adding tariffs is an indirect way of allowing the US additional ways to make money to obtain a better position in the new, shrunken economy, if this is really possible.

The upcoming shrinking-back event is the result of too little energy consumption additional ways to make money in relation to total world population. Most researchers have completely missed the possibility that energy limits additional ways to make money could manifest themselves as excessive wage disparity. In fact, they have tended to assume that energy limits would manifest additional ways to make money themselves as high energy prices, especially for oil.

The world’s networked economy doesn’t work in the simple way that most researchers have additional ways to make money assumed. Too much wage disparity tends to lead to low energy additional ways to make money prices, rather than high, because of increasing affordability issues. The result is energy prices that are too low for additional ways to make money producers, rather than too high for consumers. Producers (such as OPEC nations) willingly cut back on production in an attempt to get additional ways to make money prices back up. The resulting shortage can be expected to more closely resemble additional ways to make money financial collapse than high prices and a need for rationing. Trump’s tariffs may provide the US a better position, if the world economy should partially collapse.

If china is to manufacture goods and services for the additional ways to make money world economy as well as its own people, it needs a growing supply of cheap-to-produce energy. China’s largest source of energy is coal. China’s coal production hit a peak in 2013 and has additional ways to make money been on a bumpy plateau, or falling, since. The problem has been a combination of (a) a higher cost of coal production, because existing mines are depleting, combined with (b) coal prices that do not rise high enough to make additional ways to make money production from these mines profitable.

Of course, if coal prices were to rise higher, china would have a different, but equally serious problem: the cost of finished goods created for the world marketplace additional ways to make money would be quite a bit higher, making it difficult to export them profitably. If customers’ wages rose at the same time coal prices rose, there would be no problem. The problem could be described in some sense as growing additional ways to make money mining inefficiency because of coal depletion. Unfortunately, the world economy does not reward a shift toward inefficiency.

Economies around the world depend on china for many manufactured additional ways to make money goods. In fact, for many minerals, china’s usage amounts to over half of the world’s consumption. This arrangement doesn’t really make sense because (a) china cannot really be depended on for the long term additional ways to make money because of coal depletion, (b) jobs that pay well in advanced economies are being lost additional ways to make money to china and other emerging markets, and (c) the level of concentration of manufacturing in china puts the additional ways to make money world system at risk if china has any kind of additional ways to make money adverse shift in its economy.

Reason #1. The issue underlying rising costs of fossil fuels is nearly additional ways to make money always depletion. For example, with coal mines, the coal closest to the surface in the thickest seams additional ways to make money is extracted first. As this is depleted, deeper coal in thinner seams can also be extracted, but the cost tends to be higher. When depletion takes place, it is nearly always possible to extract more of the additional ways to make money given fuel if some combination of more human labor and additional ways to make money more technology (powered by energy) is used. Of course, adding labor and/or technology leads to a higher cost of production.

But the prices of commodities are not determined based on additional ways to make money the cost of production; prices are determined in the marketplace. They reflect the quantity of finished goods and services made additional ways to make money with these commodities, that consumers (in the aggregate) can afford. Extracting coal or another fuel in what is essentially a additional ways to make money less efficient manner doesn’t add to what consumers can afford. The combination of flat prices and higher costs leads to additional ways to make money unprofitable producers–precisely china’s problem. Producers tend to cut back on production.

Economists, sitting in their ivory towers, have not stopped to think through the obvious. Their standard supply and demand curve does not work for additional ways to make money energy because an adequate supply of cheap energy is needed additional ways to make money for both the demand for goods and services (coming from wages workers earn) and the supply of goods and services. Once affordability becomes a problem, because too many people have low wages, the prices of fuels stop rising. It is the fact that prices don’t rise high enough that causes the “peaking” of oil, natural gas, and coal production. Extraction stops, even though there seem to be plenty of resources still additional ways to make money available with current technology.

As shown in figure 4 (above), china’s coal production stopped rising in 2013, keeping the total amount of energy it produces close to additional ways to make money flat. To compensate for this shortfall, china has started to import oil, coal and natural gas. The difference between the thick black line and the top additional ways to make money of the “stack” of types of energy produced in china (in figure 7 below) represents the quantity of fuel that it has needed to additional ways to make money import. Clearly, this quantity has been increasing.

Unfortunately, there is a significant chance that major parts of the additional ways to make money world economy will start collapsing, with or without trump’s tariffs and the trade war, because energy supplies worldwide are not growing sufficiently. In fact, some of these energy supplies are purposely being removed by additional ways to make money producers, such as saudi arabia, because prices are too low.

By putting tariffs on some goods, trump is providing a substitute for the missing high oil additional ways to make money prices needed to slow the growth of globalization, if the issue of ever-increasing wage disparity is to be solved. The tariffs tend to raise the value of the US additional ways to make money dollar relative to other currencies, making the cost of commodities (including fossil fuels) cheaper for US consumers than for other consumers around the additional ways to make money world. The tariffs tend to encourage new investment in US production additional ways to make money of many types, at the same time that they make investment in other additional ways to make money countries, such as china, less appealing.

All of these changes indirectly give the US an advantage additional ways to make money if there should be a partial collapse of the world additional ways to make money economy. With the benefit of the tariffs, perhaps the partial collapse would leave some combination of countries, including the US and canada, mostly unaffected. There might be other groups remaining as well. Weak economies, such as venezuela, cuba, and haiti, would likely be pushed aside. Even europe and japan would likely have major problems.

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