I scared a member off of Liberty List (a Yahoo!Group I once moderated -ed.) today by posting the following in response to his query,
What do you think of Peak Oil?
If such a thing did occur (sudden collapse of the economy due to lack of oil) there wouldn’t be much left that is worth living for, much less investing in. Thankfully, there are replacements for natural oil that are making headway in the marketplace. Biodiesel is one example.
When I first stumbled across the doom and gloom mantra being preached by modern ‘environmentalists’ (I was recycling when recycling wasn’t cool, BTW. I don’t think much of today’s crop) I did some research into the subject of shortages and what has happened through history when they occurred.
The one that seemed most similar was the period when we shifted from whale oil to crude oil (the IMHO misnomered ‘fossil fuel’) there were similar predictions of doom and gloom, none of which came to pass because the markets simply shifted to crude oil.
I was unable to track down the articles I originally referenced for these facts, they have been covered up by thousands of repetitive articles on ‘Peak Oil’. That fact says more than any number of historical links. It’s the ‘in’ idea of the moment, and that’s all they are talking about. But it isn’t convincing to me.
To quote Steven Levitt:
What most of these doomsday scenarios have gotten wrong is the fundamental idea of economics: people respond to incentives. If the price of a good goes up, people demand less of it, the companies that make it figure out how to make more of it, and everyone tries to figure out how to produce substitutes for it. Add to that the march of technological innovation (like the green revolution, birth control, etc.). The end result: markets figure out how to deal with problems of supply and demand.Freakonomics: “Peak Oil”:Welcome to the Media’s New Version of Shark Attacks
This observation sums it all up for me. I just don’t have time to contemplate end of the world scenarios, I guess. And the guy bailed on the whole group after I posted that. Do you think I was coming on too strong?
Editor’s note, 2019. Query answered. People want to believe that fantasies can occur in the real world.