{"id":29571,"date":"2018-01-10T08:26:53","date_gmt":"2018-01-10T13:26:53","guid":{"rendered":"http:\/\/olduvai.ca\/?p=29571"},"modified":"2018-01-10T08:26:53","modified_gmt":"2018-01-10T13:26:53","slug":"will-the-world-economy-continue-to-roll-along-in-2018","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=29571","title":{"rendered":"Will the World Economy Continue to \u201cRoll Along\u201d in\u00a02018?"},"content":{"rendered":"

Will the World Economy Continue to \u201cRoll Along\u201d in\u00a02018?<\/a><\/h3>\n
\n

Once upon a time, we worried about oil and other energy. Now, a song from 1930 seems to be appropriate:<\/p>\n

Today, we have a surplus of oil, which we are trying to use up. That never happened before, or did it? Well, actually, it did, back around 1930. As most of us remember, that was not a pleasant time. It was during the Great Depression.<\/p>\n

\"\"<\/a><\/p>\n

Figure 1. US ending stocks of crude oil, excluding the Strategic Petroleum Reserve. Amounts will include crude oil in pipelines and in \u201ctank farms,\u201d awaiting processing. Businesses normally do not hold more crude oil than they need in the immediate future, because holding this excess inventory has a cost involved. Figure produced by EIA. Amounts through early 2016.<\/p>\n<\/div>\n

A surplus of a major energy commodity is a sign of economic illness; the economy is not balancing itself correctly. Energy supplies are available for use, but the economy is not adequately utilizing them. It is a sign that something is seriously wrong in the economy\u2013perhaps too much wage disparity.<\/p>\n

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Figure 3. U. S. Income Shares of Top 10% and Top 1%, Wikipedia exhibit<\/a> by Piketty and Saez.<\/p>\n<\/div>\n

If wages are relatively equal, it is possible for even the poorest citizens of the economy to be able to buy necessary goods and services. Things like food, homes, and transportation become affordable by all. It is easy for \u201cDemand\u201d and \u201cSupply\u201d to balance out, because a very large share of the population has wages that are adequate to buy the goods and services created by the economy.<\/p>\n<\/div>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

Will the World Economy Continue to \u201cRoll Along\u201d in\u00a02018? Once upon a time, we worried about oil and other energy. Now, a song from 1930 seems to be appropriate: Today, we have a surplus of oil, which we are trying to use up. That never happened before, or did it? Well, actually, it did, back […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[277,1233,353,594,1232,14508,1808],"class_list":["post-29571","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-eroei","tag-gail-tverberg","tag-gdp","tag-oil-prices","tag-our-finite-world","tag-wage-disparity","tag-wages"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/29571","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=29571"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/29571\/revisions"}],"predecessor-version":[{"id":29572,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/29571\/revisions\/29572"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=29571"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=29571"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=29571"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}