Tag Archives: economic growth

Party’s Over

I am in Madrid that is more like a ghost town, because it has been blockaded by lorry drivers protesting at the high fuel prices.  We have become so accustomed to cheap oil, an era where supply nearly always exceeded demand and so we were left paying for the cost of extracting, refining and shipping it but not paying for the raw commodity itself.  Think of the work that can be done by a small quantity of easily and cheaply acquired fuel, and how long it would take a human to do the same unaided, whether a car, a chainsaw or a computer.  the machinery–the cars, chain saws and computers–are themselves manufactured with cheap fuel and had become ever cheaper.

It is looking as if the party is over.  Reality beckons.