On the Energy Theory of Value: Economy and Policies

Peter Stallinga

doi:10.4236/me.2020.115081

Abstract

The Energy Theory of Value is presented on basis of clearly defined physical principles of energy and entropy. It is put in three postulates: economy is energy consumption, the universe (and thus economy) needs to increase its entropy, and in a free market every trade leaves people happier (defined in physical objectives). For the energy equivalence, we find a current energy value of 170 mW economy per (2019) US$/year. Three basic questions are asked and answered: Is unfettered capitalism possible? Can we manage a steady-state economy in a free market? Do the energy transition policies make sense? It is found that if energy consumption is reduced, it will push many people into abject poverty.

Highlights

In this work, we are going to analyze the economy from a point of view of Physics
It is put in three postulates: economy is energy consumption, the universe needs to increase its entropy, and in a free market every trade leaves people happier
Karl Marx having shown that an energetically-indefinitely-growing economy is not possible in a free market, since it will lead to a crisis of overproduction in which a need for consumption goods exists alongside an idle infrastructure capable of supplying them, 1) Is it possible to have an growing free-market economy after an energy transition? Meaning after switching from fossil fuels to renewable sources, can we have a biologically-viable sustainable growth?

Summary

Introduction

We are going to analyze the economy from a point of view of Physics. But first, a word on the relevancy of this work. Rather, having determined the desired solution (world governance), they worked on finding the necessary problem They soon came up with it and presented it in their book The First Global Revolution (King & Schneider, 1991). A way to join us was suggested in the use of climate change as a binding factor Meaning, if it was not true, it should be invented—a convenient lie—for the benefit of the planet and humanity. In searching for a new enemy to unite us, we came up with the idea that pollution, the threat of global warming, water shortages, famine and the like would fit the bill All these dangers are caused by human intervention, and it is only through changed attitudes and behavior that they can be overcome.

The Role of Energy in the Economy

The Role of the Financial System in the Economy

The Role of Politics in the Economy

The Implications

Findings

Discussion