Well, I haven’t visited our friends at the EIA for a while, so I thought I’d pop by and see how Zero is doing with his magical economic and energy policies.
First, let’s look at a prime indicator of an economy. That is, energy use. If an economy is truly expanding, it will use more energy in all sectors. Industrial growth, naturally, occurs with an expanding industry. They should be demanding more energy to produce more, and to do more. Also, in response, the residential use should also increase if wealth is expanding. More workers in the industrial base equates to more money in the pocket of the people. This also, in turn, increases the commercial energy use at the various stores and shops. More people with money equates to more real spending. I like looking at electric generation because it avoids the traps of tracking cash. Now, the governments skew cash value because they don’t track inflation properly. And, they seem oblivious to the value of currency relative to other currencies. Of course, in this world, today, each nation is racing to devalue their currency, so, it would be very difficult to pinpoint a real value on the US dollar or any other currency. So, electric generation is, in many ways, a better proxy for a gauge for an economy than actual money values.
The question is, is a nation doing more or less than what they were before. If the answer is less, then an economy is likely to be in a recession. If the answer is more, then you’re likely to see economic growth. Now, mind you, there are other things to note, as well. For instance, population growth. In nations, such as the US, the population is still growing, and the more people, the more demand for electricity and other sources of energy. So, what we should see is a gentle increase in energy use, even if the economy is stagnant. Let’s take a look at our recent electricity generation, the graph is in 1000 mWh …….
The most ever in the US was 4156745 thousand megawatt hours, in 2007!!!!!
Zero!!!! You’re going the wrong way!!!! You moron!!!!
Well, if demand for electricity is going down, then surely the cost of doing things which require energy use is going down, as well, right? Well let’s look. The graph is in cents per kWh, with each sector represented.
Well, industrial and commercial have increased, albeit slightly, but, look at what the residential prices have done over the last 4 years!!! We’re using less, but, we’re paying more for what we’re using!!1
And, this, my friends is what a nation mired in a recession looks like, with very little options to significantly expand. The people aren’t getting hired, and what little disposable income they had is being usurped by the higher costs of energy. Guaranteed, were either the commercial or industrial bases to fire up and demand more energy, the costs would increase, as well.
Oh, yeh, and what a SCoaMF looks like? He’s pictured at the top.
source for the graphs is the EIA