Comment: You can't turn lead into gold by passing a law.

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You can't turn lead into gold by passing a law.

~400 years ago the industrial age began with the exploitation of stored energy resources. Before that the human economy was limited to what renewable energy would fuel. Inherent in the industrial age was the "low hanging fruit" principle. This simply means that we acquire the most profitable, easiest to acquire resource deposits first and leave the rest for later, only later is now.

The cost to acquire resources follows a compound growth curve, so ultimately we can't afford to acquire the energy to fuel our industrial age, and like the end of all compound growth curves there is collapse. Up until the last 15 years we were able to compensate for the energy lost from increasing acquisition cost by increasing total energy production, but we have reached geological limits in important energy sectors so the devil has caught up with us. The economy cannot grow because of energy constraints. As the industrial age dies, there will be plenty of energy deposits in the ground; they simply won't be economical to extract.

Oil is our most important energy resource. In 1930 we only spent the energy equivalent of 1 barrel of oil to get back 100. Today we spend the equivalent of 11 barrels of oil to get back 100. This is a 3% compounded rate of growth in this acquisition cost. In another 23+ years it will take 22 barrels of oil to get back 100 based on a continuation of this cost curve, and you can see this process in the shift from conventional deposits to deep water, shale, and tar sand deposits, all hugely more expensive than conventional oil.

This energy acquisition cost crisis limits economic output. Indeed, it will produce a negative growth rate, and the economic output will be cut in half repeatedly since any negative rate of growth will have an associated halving period wherein economic output drops by half. For example, if the rate of contraction is 3.5% the economy will be halved in 20 years, rinse and repeat.

At our current position in the oil acquisition cost curve, we cannot as a society afford luxuries, higher education, or advanced medical care. If government mandates we all have advanced medical care, and can actually enforce such a mandate, then we must give up something else, and that means something more essential like food and shelter must suffer. When economic output is limited by energy constraints then government forcing production of one product or service comes at the expense of something else that the free market would have determined to be produced.

Obamacare can't possibly be afforded. What will happen is that it will make people suffer in other aspects of their lives, and as is usual with the black hand of government, it will also destroy the health care system much faster than would have occurred without the intervention. We are not facing a positive future; with massive government making choices for us, it is all the more bleak.

Revolution can't come soon enough for me.

"Bend over and grab your ankles" should be etched in stone at the entrance to every government building and every government office.