Malthus… has been the whipping boy of idealists and techno-optimists for two hundred years. His famous essay proposed that human population, if uncon… - James Howard Kunstler

The so-called global economy was not a permanent institution, [...] but a set of transient circumstances peculiar to a certain time: the… fossil fuel era. […] Factories could be started up in Sri Lanka and Malaysia, where swollen populations furnished trainable workers willing to labor for much less than those back in the United States or Europe. Products then moved around the globe in a highly rationalized system, not unlike the oil allocation system, using immense vessels, automated port facilities, and truck-scaled shipping containers at a minuscule cost-per-unit of whatever was made and transported. Shirts or coffeemakers manufactured 12,000 miles away could be shipped to s all over America and sold cheaply. […] Meanwhile, among economists and government figures, globalism developed... [as] an intellectual fad. Globalism allowed them to believe that burgeoning wealth in the developed countries, and the spread of industrial activity to formerly primitive regions, was based on the potency of their own ideas and policies rather than on cheap [and easy-to-find hydrocarbons like] oil. […] [An] overlooked [fact] is that [Margaret] Thatcher’s success in reviving England coincided with a fantastic new revenue stream from oil, as quaint old Britannia became energy self-sufficient and a net energy-exporting nation for the first time since the heyday of coal. Globalism then infected America when Ronald Reagan came on the scene in 1981. Reagan’s ‘supply-side” economic advisors retailed a set of fiscal ideas that neatly accessorized the new notions about free trade and deregulation, chiefly that massively reducing taxes would… result in greater revenues as the greater aggregate of business activity generated a greater aggregate of taxes even at lower rates. […] The rise of computers, in turn, promoted the fantasy that commerce in sheer information would be the long-sought replacement for all the played-out activities of the smokestack economy. A country like America, it was now thought, no longer needed steelmaking or tire factories or other harsh, dirty, troublesome enterprises. Let the poor masses of Asia and have them and lift themselves up from agricultural peonage. America would outsource all this old economy stuff and use computers to orchestrate the movement of parts and the assembly of products from distant quarters of the world, and then sell the stuff in our own s and s, which would become global juggernauts of retailing. […] It was also like a convoluted liquidation sale of the accrued wealth of two hundred years of industrial society for the benefit of a handful of financial buccaneers, with the great masses relegated to a race to the bottom as the economic assets are dismantled and sold off, and their livelihoods are closed […]. That this development was uniformly greeted as a public good by the vast majority of Americans, at the same time that their local economies were being destroyed—and with them, myriad social and civic benefits—is one of the greater enigmas of recent social history. In effect, Americans threw away their communities… to save a few dollars on hair dryers and plastic food storage tubs, never stopping to reflect on what they were destroying.

Money is a wonderful thing. It started out in human history as hard currency, generally gold or silver. These are commodities that are deemed to have intrinsic value but also act as a means of abstractly representing wealth accumulated out of other real commodities. Relatively little hard currency ever circulated freely in the preindustrial world. In that world, most wealth was actual, existing in the form of land, palaces, fleets of boats, bolts of cloth, barrels of grain, standing timber, herds of cattle, and so forth. These were generally things that could be traded, and exchanges of these items were often facilitated through the medium of gold or silver, hence the term "medium of exchange." [The] hard currency could also be acquired by theft or plunder, though that did not necessarily affect its value. Note that the value of [the] hard currency is transcultural. Gold and silver had high value to the Europeans, the Chinese of the Sung dynasty, the Inca, the Aztecs, the ancient Egyptians, and the California Forty-niners.
The industrial experiment took the idea of currency (money) to the next level of abstraction—as hard currency can represent actual goods, so paper currency can represent hard currency and actual goods. As trade increased and took place over ever-greater distances, paper promises to pay hard currency began to steadily take the place of the hard stuff itself, which was cumbersome, hard to lug around in large quantities, and subject to theft in transit. So, to streamline these trades, all kinds of certificates were used as equivalents to hard currency: individual IOUs, bills of lading, letters of credit from rich people, [and] promissory notes issued by guilds. In time, the use of paper certificates became… more normative and conventionalized. Protocols of exchange were established. Institutions were created to process them. This process of managing monetary affairs—of wealth abstracted in [a] paper—was called finance.

There have to be limits. If we project “housing starts” ninety-nine years forward at current rates, there wouldn’t be a single buildable quarter-acre lot left in the world. Not a few economists would rationalize this outcome by declaring that [in] ninety-nine years from now we will have colonies on the moon or Mars or under the . Or that technology coupled with human ingenuity will solve the problem some other way, […] by genetically reengineering human beings to be one inch tall or booting all our consciousnesses into computer servers where unlimited numbers of virtual people could dwell in unlimited virtual environments of endless cyberspace.
More likely, we will remain confined to the planet Earth. Economic growth that has appeared normative and desirable during the story of industrialism is already becoming pathogenic in an economy showing more… signs of positive feedback and accelerating positive entropy manifesting as damage to the biosphere. High entropy becomes particularly problematic in an economy utterly dependent on a few… commodities […]. It becomes especially relevant when the limits to those commodities become tangible, as is now the case as we approach the global oil production peak and the actual depletion (thirty years past peak) of the North American natural gas endowment. But the collective imagination of the public cannot process the notion of a nongrowth economy, even though the limits to growth are visible all around us in everything from the paved-over suburban landscapes to the steeply rising gas prices, to played-out aquifers, to the death of the Atlantic cod fishery. We are not capable of conceiving another economic way. We are hostages to our own system.