Global economy collapse?

[Enlightenee]

With non renewable resources, metals and oil, due to run out in the very near future and no real plans put forward to fix these problems is the world doomed?

Due to sub-prime loans and a plummeting real estate market in the US, their economy is starting to look shaky to those outside of the US.
Australia's booming in the resource sector, but with an economy dependent on mining, for how long?
It appears the only way to make money is through Military, which might explain the trigger-happy US policy.

So gentlemen, whats the situation at the moment and are we headed for a new depression?

[DebaterU]

Hi Enlightenee,

I doubt oil will actually "run out". We're just getting more dependent on it, as population increases and as the industry sector increases. There may not be enough to fuel our world in 20 years time, but it will still be there.

So, is the world doomed if we run short of oil? Not if we can get our act together, because there are alternatives. For example, renewable energy such as solar power. And, economically speaking, we will get our act together. As our world becomes more dependent on oil, this will increase demand for it. Increase in demand -> increase in price. As price increases, consumers will start seeking cheaper substitutes. Demand for these alternatives, therefore, will increase. Firms will then react to this by producing what consumers want and resources will be transferred from the non-renewable energy sector to the renewable energy sector.

We see evidence of consumers seeking cheaper substitutes (due to rising oil prices) through recent decreases in large vehicle sales and increases in sales of smaller, imported cars. Admittedly, however, I can't give you any evidence of consumers actually switching from oil to another energy source (instead of just using less oil), but I think more of this evidence will emerge if oil prices continue to increase.
Capitalism will cope with the scarcity of oil, the world is not doomed.

It's a similar story with metals. Take copper for example. Demand for fibre optics (an alternative/substitute) is increasing. A free market will respond to this change in consumer preferences and take care of it. It's not the end.

[Nono]

Debater's rosy argument ignores the fact that no energy sources realistically hold the prospect of replacing oil to fuel the present global/industrial economy.

The hallowed free market isn't going to allow us to defy gravity. When the cost of fossil fuels rises dramatically, as it inevitably must, we'll have a lot more than just a depression on our hands. The world's cities (home of over half its human population) will become simply unliveable and will have to be abandoned.

Imagine the consequences of that.

No solar/wind/tide/nuclear/hydrogen pipedream is going to change this reality.

[Heather]

First, welcome to Volconvo DebaterU.

I would have agree more with what DebaterU says in that as alternatives are demanded/needed, alternatives will be found. We humans have an awesome ability to create technologies when under pressure. Take a look at the large advances made during times of war because the circumstances demanded it. I have no doubt that we will continue to follow as we always have done historically.

[HelioPrime]

Yes, our economy has a great history of being able to gear itself under duress. But we will have to first experience that duress to get anywhere.

We could build enough solar/wind/alternative stations to power the nation, but it won't be until fuel is so scarce we can't provide it any longer and the oil/coal companies loose their lobbying power. Thats assuming they don't use their money to buy up all the technology and become the alternative energy barons.

Were a crisis nation. We don't address problems untill they are in our face obvious. The same will come with the future of the economy.

The warning signs can all be there but people will generally just change the channel when they see news on the economy.

[Nono]

Quote by: Heather We humans have an awesome ability to create technologies when under pressure.

This vague paean to human ingenuity may reassure you. But it stands up to scrutiny only in a very narrow selection of cases. More often than not, those under pressure have simply succumbed.

Quote by: Helio We could build enough solar/wind/alternative stations to power the nation...

It's be a far different nation from the one you know.

You're conveniently confining yourself to electrical power. But remember that the sun shines and the wind blows in an inconstant manner compared with current "needs", and often far away from where it's needed.

Our societies and our economies are built around fossil fuels, and their decline will bring about the disappearance of the consumer, growth-dependent economy, massive dislocation, and the end of human habitation of cities.

Sticking one's head in the sand of "alternative energy sources" may feel good, but it won't change reality.

[Osborn F Enready]

The global economy has been destined to collapse for a long time, by design.

The current gross world product falls short of global debt by like 7 times its "rated" value.

The next currency shifts will be evident and obvious to all, if they are paying attention.

The people who have "closed their eyes to the injustice they saw before them, in hopes for the best" are about to have a rude awakening.