Sign in to follow this  
Followers 0
TatonkaJames

Krugman, Nobel Prize winner, chief economic advisor to President Ronald Reagan

Rate this topic

10 posts in this topic

Here Comes the Sun

By PAUL KRUGMAN

For decades the story of technology has been dominated, in the popular mind and to a large extent in reality, by computing and the things you can do with it. Moore’s Law — in which the price of computing power falls roughly 50 percent every 18 months — has powered an ever-expanding range of applications, from faxes to ********.

 

Our mastery of the material world, on the other hand, has advanced much more slowly. The sources of energy, the way we move stuff around, are much the same as they were a generation ago.

 

But that may be about to change. We are, or at least we should be, on the cusp of an energy transformation, driven by the rapidly falling cost of solar power. That’s right, solar power.

 

If that surprises you, if you still think of solar power as some kind of hippie fantasy, blame our fossilized political system, in which fossil fuel producers have both powerful political allies and a powerful propaganda machine that denigrates alternatives.

 

Speaking of propaganda: Before I get to solar, let’s talk briefly about hydraulic fracturing, a k a fracking.

 

Fracking — injecting high-pressure fluid into rocks deep underground, inducing the release of fossil fuels — is an impressive technology. But it’s also a technology that imposes large costs on the public. We know that it produces toxic (and radioactive) wastewater that contaminates drinking water; there is reason to suspect, despite industry denials, that it also contaminates groundwater; and the heavy trucking required for fracking inflicts major damage on roads.

 

Economics 101 tells us that an industry imposing large costs on third parties should be required to “internalize” those costs — that is, to pay for the damage it inflicts, treating that damage as a cost of production. Fracking might still be worth doing given those costs. But no industry should be held harmless from its impacts on the environment and the nation’s infrastructure.

 

Yet what the industry and its defenders demand is, of course, precisely that it be let off the hook for the damage it causes. Why? Because we need that energy! For example, the industry-backed organization energyfromshale.org declares that “there are only two sides in the debate: those who want our oil and natural resources developed in a safe and responsible way; and those who don’t want our oil and natural gas resources developed at all.”

 

So it’s worth pointing out that special treatment for fracking makes a mockery of free-market principles. Pro-fracking politicians claim to be against subsidies, yet letting an industry impose costs without paying compensation is in effect a huge subsidy. They say they oppose having the government “pick winners,” yet they demand special treatment for this industry precisely because they claim it will be a winner.

 

And now for something completely different: the success story you haven’t heard about.

 

These days, mention solar power and you’ll probably hear cries of “Solyndra!” Republicans have tried to make the failed solar panel company both a symbol of government waste — although claims of a major scandal are nonsense — and a stick with which to beat renewable energy.

 

But Solyndra’s failure was actually caused by technological success: the price of solar panels is dropping fast, and Solyndra couldn’t keep up with the competition. In fact, progress in solar panels has been so dramatic and sustained that, as a blog post at Scientific American put it, “there’s now frequent talk of a 'Moore’s law’ in solar energy,” with prices adjusted for inflation falling around 7 percent a year.

 

This has already led to rapid growth in solar installations, but even more change may be just around the corner. If the downward trend continues — and if anything it seems to be accelerating — we’re just a few years from the point at which electricity from solar panels becomes cheaper than electricity generated by burning coal.

 

And if we priced coal-fired power right, taking into account the huge health and other costs it imposes, it’s likely that we would already have passed that tipping point.

 

But will our political system delay the energy transformation now within reach?

 

Let’s face it: a large part of our political class, including essentially the entire G.O.P., is deeply invested in an energy sector dominated by fossil fuels, and actively hostile to alternatives. This political class will do everything it can to ensure subsidies for the extraction and use of fossil fuels, directly with taxpayers’ money and indirectly by letting the industry off the hook for environmental costs, while ridiculing technologies like solar.

 

So what you need to know is that nothing you hear from these people is true. Fracking is not a dream come true; solar is now cost-effective. Here comes the sun, if we’re willing to let it in.

Share this post


Link to post
Share on other sites

It took 5 years for Krug-Man to recognize that the USD and The EUR are nothing more than IOU's.

He decided to Buy Gold last thursday. :freak:

 

He has strongly held that the US did not use enough stimulous and that ALL BANKS should have been Nationalized...

 

His expertise is supposedly Macro-Economics and he is a Hard-lIne Keynsian.

 

What we are witnessing right now in Europe is that everything Paul Krugman has recomended has disastrously failed.

 

With that back-story - when Krugman reccomends anything outside of his realm of expertise, it's time to ask why he isn't preaching the "safety" of the Eurozone anymore?

 

Economics 101 tells us that an industry imposing large costs on third parties should be required to “internalize” those costs — that is, to pay for the damage it inflicts, treating that damage as a cost of production. Fracking might still be worth doing given those costs. But no industry should be held harmless from its impacts on the environment and the nation’s infrastructure.

 

Hey Krug-Man - you wanted the US Gov't to internalize All the holdings of every Bank...

If we followed your advice, the DXY would be below 30!!!! :mad:

 

Does Krug-Man even consider the Fracking process or is he following another's script?

 

Why does he ignore Heckman?

 

Why does he ignore LNG?

 

 

But Solyndra’s failure was actually caused by technological success: the price of solar panels is dropping fast, and Solyndra couldn’t keep up with the competition. In fact, progress in solar panels has been so dramatic and sustained that, as a blog post at Scientific American put it, “there’s now frequent talk of a 'Moore’s law’ in solar energy,” with prices adjusted for inflation falling around 7 percent a year.

 

 

FALSE

 

Solyndra's failure was fraudulent accounting.

 

They didn't even roll out a viable product. They were in and endless R&D phase...

 

Krug-Man continues to parade the notion that problems go away when you keep throwing money at them.

 

Many years ago, he had a clue.

 

Lately - he's all over the map.

 

What kills e about this article: he doesn't present hard economic or fundamental evidence.

 

LAst week he finally got "scared" that the Euro was sinking rapidly.

 

In Jan 2010 he claimed that Europe was right to give away the farm to labor unions and cradle to grave Governing was far more advanced than what Conservatives warned about...

 

Well Gee Krug-Man - the Euro was always a POS and the currency centralization was a failure without a total surrender of sovereignty....

 

What Krug-Man also fails to mention is the USA is the largest consumer and producer of Solar technology.

 

I guess we can thank his hero Barack Obama for killing the Goose that laid the Solar Energy Egg (NASA)

 

 

Share this post


Link to post
Share on other sites

 

 

Quote:

Originally Posted by TatonkaJames View Post

 

Yeah, well, we all know more than Nobel prize winning economists even if they worked for Republican presidents.

 

you don't need to be a nobel laureate to recognize that krugman has been engaged in intellectually dishonest discourse on more than one occasion.  i'm not dinging him on the solyndra thing, though.

 

Share this post


Link to post
Share on other sites

Unfortunately, outside of the hard sciences (where you actually have to like, discover/prove things) the Nobel Prize has become nothing but liberals giving awards to liberals, socialists giving awards to socialists...see Barak Hussien Obama...so a Nobel Prize in Economics don't mean a thing to me. May as well have won an academy award.

 

Krugman has been wrong so many times, about so many economic things, that they are hard to keep track of...and case in point was that he applauded the rule forcing the banks to give home loans to high risk borrowers. He is just another pinko.

Share this post


Link to post
Share on other sites

Our mastery of the material world, on the other hand, has advanced much more slowly. The sources of energy, the way we move stuff around, are much the same as they were a generation ago.

But that may be about to change. We are, or at least we should be, on the cusp of an energy transformation, driven by the rapidly falling cost of solar power. That’s right, solar power.

 

Ya right, talk to me about solar when it moves freight across the country and powers my truck.

 

It will make electricity for the grid but untill battery technology takes the next leap it will not move anything.

 

 

Share this post


Link to post
Share on other sites

The dishonest part about Krug-Man: he blames all failures on conservatives.

 

Solar Energy - everyone likes it. The USA is the largest developer and consumer of solar energy products.

 

It's greatest advances were within the space program. These advances led to uses in the private sector and "everyday" commercial uses.

People have been installing Solar Panels on their homes for the last thirty years. So there is a demand and a footing.

 

Consumer Electronics have replaced dry cells with solar cells in certain "everday devices" calculators etc...

 

You can thank all the administrations from JFK til GWB for cotinuing the avances in solar technology visa-vis space exploration.

 

the current admin defunded the space program.

 

therefore: blame conservatives for Obama's executive actions?

 

infamnia!

Share this post


Link to post
Share on other sites

Well, I can't get into that "Our side and our replies are the only ones that are ever right" debate anymore.

I just post and let it get beaten down as usual, it's easier to get along that way. :)

 

 

 

 

Share this post


Link to post
Share on other sites

Krugman has been wrong so many times, about so many economic things, that they are hard to keep track of...and case in point was that he applauded the rule forcing the banks to give home loans to high risk borrowers. He is just another pinko.

 

Like Trickle Down economics for example...

 

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to register here in order to participate.

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now
Sign in to follow this  
Followers 0

  • Recently Browsing   0 members

    No registered users viewing this page.