The Old Reality

Why does the entire Series of Ecological issues never seem to get off the Drafting Board? Tyler Cowen makes a good stab at explanation of the underlying causation. The Bottom Line states that alteration always involves extreme Cost, and in the absence of per Unit high Profits, development always wilts. Ecologists should realize that Economics is the foundation for all technological development, and that there are still real constraints on Capital finance of technological units; Nuclear Power plants themselves suffering from such constraint, being simply too expensive per Unit. Plug-In hybrid cars face the total Assembly Costs of a new model series, must meet about a 240k Unit Sales expectation per year of production at the expected Sticker price, with an expected 8-year similarity production run. Ideas are great, but Profits inhabit an entirely alternate dimension.

Here is another ‘If Wishes were Horses’ Scenario. The real fault endured by the Truckers lay in this Country’s refusal to Capitalize the Railroad industry sufficiently. There will be no Trucker bailout, basically because of economic fundamentals. The cost of diesel will not come down because there are too many Trucks on the Road. Insurance will not come down because Trucks are too expensive in Unit price due to Corporate profits manipulation, and medical claims upon Accident have accelerated at as high an Inflation rate as any Prices in the Country. Natural forces will bring a like condition as would the planned Slowdown, but not for a decade when the lack of experienced Truckers will force Transportation shortages. Trucker Dan simply hopes for an impact in an industry noted for its lack of response to outside influence, due to the numbers of independent Truckers operating; a condition which Farmers have long endured, but found no relief, even though long aided by Government programs. Their efforts will be swallowed by the market.

Neither united action or Government intervention will succeed when planned alterations violate economic fundamentals. Readers should realize why so little seems to get done so often, though there is such rhetoric expended in advocacy. The economy does not reward Good Intentions, and lack of Reward finds only lack of Capitalization. lgl