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|    alt.politics.economics    |    "Its the economy, stupid"    |    345,374 messages    |
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|    Message 344,296 of 345,374    |
|    davidp to All    |
|    =?UTF-8?Q?What=E2=80=99s_Your_Consumptio    |
|    07 Sep 23 09:15:57    |
      From: lessgovt@gmail.com              What’s Your Consumption Factor?       By Jared Diamond, Jan. 2, 2008, New York Times              TO mathematicians, 32 is an interesting number: it’s 2 raised to the fifth       power, 2 times 2 times 2 times 2 times 2. To economists, 32 is even more       special, because it measures the difference in lifestyles between the first       world and the developing        world. The average rates at which people consume resources like oil and       metals, and produce wastes like plastics and greenhouse gases, are about 32       times higher in North America, Western Europe, Japan and Australia than they       are in the developing world.        That factor of 32 has big consequences.              To understand them, consider our concern with world population. Today, there       are more than 6.5 billion people, and that number may grow to around 9 billion       within this half-century. Several decades ago, many people considered rising       population to be the        main challenge facing humanity. Now we realize that it matters only insofar as       people consume and produce.              If most of the world’s 6.5 billion people were in cold storage and not       metabolizing or consuming, they would create no resource problem. What really       matters is total world consumption, the sum of all local consumptions, which       is the product of local        population times the local per capita consumption rate.              The estimated one billion people who live in developed countries have a       relative per capita consumption rate of 32. Most of the world’s other 5.5       billion people constitute the developing world, with relative per capita       consumption rates below 32,        mostly down toward 1.              The population especially of the developing world is growing, and some people       remain fixated on this. They note that populations of countries like Kenya are       growing rapidly, and they say that’s a big problem. Yes, it is a problem for       Kenya’s more        than 30 million people, but it’s not a burden on the whole world, because       Kenyans consume so little. (Their relative per capita rate is 1.) A real       problem for the world is that each of us 300 million Americans consumes as       much as 32 Kenyans. With 10        times the population, the United States consumes 320 times more resources than       Kenya does.              People in the third world are aware of this difference in per capita       consumption, although most of them couldn’t specify that it’s by a factor       of 32. When they believe their chances of catching up to be hopeless, they       sometimes get frustrated and        angry, and some become terrorists, or tolerate or support terrorists. Since       Sept. 11, 2001, it has become clear that the oceans that once protected the       United States no longer do so. There will be more terrorist attacks against us       and Europe, and perhaps        against Japan and Australia, as long as that factorial difference of 32 in       consumption rates persists.              People who consume little want to enjoy the high-consumption lifestyle.       Governments of developing countries make an increase in living standards a       primary goal of national policy. And tens of millions of people in the       developing world seek the first-       world lifestyle on their own, by emigrating, especially to the United States       and Western Europe, Japan and Australia. Each such transfer of a person to a       high-consumption country raises world consumption rates, even though most       immigrants don’t succeed        immediately in multiplying their consumption by 32.              Among the developing countries that are seeking to increase per capita       consumption rates at home, China stands out. It has the world’s fastest       growing economy, and there are 1.3 billion Chinese, four times the United       States population. The world is        already running out of resources, and it will do so even sooner if China       achieves American-level consumption rates. Already, China is competing with us       for oil and metals on world markets.              If India as well as China were to catch up, world consumption rates would       triple. If the whole developing world were suddenly to catch up, world rates       would increase elevenfold. It would be as if the world population ballooned to       72 billion people (       retaining present consumption rates).              Some optimists claim that we could support a world with nine billion people.       But I haven’t met anyone crazy enough to claim that we could support 72       billion. Yet we often promise developing countries that if they will only       adopt good policies for        example, institute honest government and a free-market economy they, too,       will be able to enjoy a first-world lifestyle. This promise is impossible, a       cruel hoax: we are having difficulty supporting a first-world lifestyle even       now for only one        billion people.              We Americans may think of China’s growing consumption as a problem. But the       Chinese are only reaching for the consumption rate we already have. To tell       them not to try would be futile.              The only approach that China and other developing countries will accept is to       aim to make consumption rates and living standards more equal around the       world. But the world doesn’t have enough resources to allow for raising       China’s consumption rates,        let alone those of the rest of the world, to our levels. Does this mean       we’re headed for disaster?              No, we could have a stable outcome in which all countries converge on       consumption rates considerably below the current highest levels. Americans       might object: there is no way we would sacrifice our living standards for the       benefit of people in the rest        of the world. Nevertheless, whether we get there willingly or not, we shall       soon have lower consumption rates, because our present rates are unsustainable.              Real sacrifice wouldn’t be required, however, because living standards are       not tightly coupled to consumption rates. Much American consumption is       wasteful and contributes little or nothing to quality of life. For example,       per capita oil consumption in        Western Europe is about half of ours, yet Western Europe’s standard of       living is higher by any reasonable criterion, including life expectancy,       health, infant mortality, access to medical care, financial security after       retirement, vacation time,        quality of public schools and support for the arts. Ask yourself whether       Americans’ wasteful use of gasoline contributes positively to any of those       measures.                     [continued in next message]              --- SoupGate-Win32 v1.05        * Origin: you cannot sedate... all the things you hate (1:229/2)    |
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