The industrial capital stock grows to a level that requires an enormous input of resources. In the very process of that growth it depletes a large fraction of the resource reserves available. As resource prices rise and mines are depleted, more and more capital must be used for obtaining resources, leaving less to be invested for future growth. Finally investment cannot keep up with depreciation, and the industrial base collapses, taking with it the service and agricultural systems, which have become dependent on industrial inputs.
Sunday, June 7, 2009
In another The Oil Drum production, Ugo Bardi makes the case that yes, the condition of the world today is the Club of Rome prediction "verifying" as metorologists would say, or "coming true" as they say in the fable business.
Posted by Michael Tobis at 1:56 PM