The Future Economy and its Jobs

[Drop_Bear]

I’ve recently read Polanyi’s Great Transformation, which set me thinking about how we got into this mess, how the mess is likely to develop and what we might do to mitigate the harm. Our problem boils down to an excess of Capitalism.

Capitalism is a tool set. The set does not necessarily hold the best tool for every job. Sadly, too many people in positions of influence treat it as a belief system. We end up trying to use hammers to mend watches (figuratively speaking).

The only solutions I’ve come up with involve a great deal of government intervention. Neither of the major political parties seems up to the challenge.

We’re in the insane position of having high unemployment, while there are jobs that obviously need doing. Recycling is one. Crying need and lots of jobs, but nobody’s doing it.

What else? Telecommunications, perhaps? For the mess that’s been made, we should be lynching politicians. Getting to work fixing the mess might be a better option.

Next, an extract from an old post:

I’ve come this far, so what’s my solution? No magic bullet, just a nation-building project on a scale that will have current-generation politicians fouling their nappies. Make that inter-nation-building. There are good reasons for involving our near neighbours.

Turn the entire nation into one coordinated mass of generation and storage. Extend that to our near neighbours, which have significant tidal, hydro and geothermal resources.

The Tasman Sea, for example, is about 2,000 kilometres wide. Modern HVDC transmission lines typically lose about 3% per thousand kilometres. Transmitting power harnessed from New Zealand’s geothermal resources to Australia’s east coast would therefore be more cost-effective than storing Australian-produced power (full-cycle storage losses are typically about 20%). That’s far from the full story, but it’s the scale we need to consider.

Papua New Guinea and parts of Indonesia are also in the picture. While harnessing their resources, we could lift the living standards of their populations. How’s that for a win-win? Of course, the concept can be pushed further. Australia might be the start, but there’s no reason for it to be the end.

Given that I’ve already mentioned telecommunications: while we’re building a power network, why not incorporate telecommunications? Most of the cost is in the digging, so it makes economic sense. Optical fibre cable is dirt cheap. The job done by copper that the PMG used to buy for (the equivalent in today’s dollars of) $10,000/kilometre can these days be done by fibre cable costing less than $300/km. It adds complexity and (a little) cost but, if we’re going to do it, why not go boots & all?

The grand vision is Australia and regional neighbours with the most reliable power and telecommunications at the lowest possible cost.

All of which requires training and education of the workforce. More jobs!

Of course, first we need leaders worthy of the title. The Lomborg school will whine about the cost, but doing nothing is costing us more - just not in short-term dollars.