Thursday, July 14, 2011
Jeff Rubin on the return of jobs in the era of oil scarcity
"'Distance will cost money' is the mantra of the new local economy that will emerge from the ashes of globalization... The global economy is about moving things around from places where we can make them the cheapest to places where we can sell them for the most money... When oil's at triple digit levels, all of a sudden the wage advantage behind producing steel in China is absolutely dwarfed by the transport costs of first moving iron ore from Brazil across the Pacific Ocean and then moving it back across the Pacific Ocean in finished steel... Who would have dreamt that triple-digit oil prices would bring new life into America's rust belts, but that will be the new economic geography that is about to emerge from oil scarcity."
More on blue collar jobs turning into green collar jobs, unions, and the advantages of high carbon emissions costs.
From his website.
Lecture at the Centre for International Governance Innovation.