Trigger For This Blog
Today, I read the weekly
newsletter put out by the German government called “The Week In Germany”. In
the introduction to this newsletter it reads “A Third Industrial Revolution - a
concept outlined by the American economist, writer and political advisor Jeremy
Rifkin and endorsed in 2007 by the European Parliament - is well underway in
Germany”. What is well under way?
The Book By The Same Name
Forgive my ignorance, I have
never really heard of this economist Jeremy Rifkin or his book by the title “The
Third Industrial Revolution: How Lateral Power Is Transforming Energy, the
Economy, and the World” published in 2011. I also freely admit that I have not yet
read the book. The table of content is very coarse and not helpful. The index of
this book is also peculiar, basically a list of names.
An excerpt from his book’s
website:
“[Mr. Rifkin] asks us to
imagine hundreds of millions of people producing their own green energy in
their homes, offices, and factories, and sharing it with each other in an
"energy internet," just like we now create and share information
online.
Rifkin describes how the
five-pillars of the Third Industrial Revolution will create thousands of
businesses and millions of jobs, and usher in a fundamental reordering of human
relationships, from hierarchical to cpower, that will impact the way we conduct
business, govern society, educate our children, and engage in civic life.” What
a wonderful world! How do we get to this stage of Rifkin’s bliss? By government
force only, because it is utopian.
Why Third Industrial
Revolution? The era we are living in is anything but a continuation of the more
than 200 year old Industrial Revolution. The information and communication
revolution we are in will even pale Gutenberg’s printing press. The exponential,
accelerating growth of human progress in so many areas is unprecedented. Thus, the
premises of this book are obviously in question.
According to Wikipedia his The
Third Industrial Revolution is based upon 5 Pillars:
1. Shifting to Renewable
Energy
2. Converting Buildings into
Power Plants
3. Hydrogen and Other Energy
Storage Technology
4. Smart Grid Technology
5. Plug in, Electric, Hybrid,
and Fuel Cell based Transportation
His 5 Pillars seem to be to be
extremely narrow in scope undeserving of such a grandiose label like Industrial
Revolution. Yes, the supply of energy is very important, but so are other
things. As any good economist knows there are always competing uses of
resources etc.
Judging from the table of
content of his book titled “Entropy – A New World View” it appears that Mr.
Rifkin classifies nuclear fusion as a nonrenewable form of energy. This
assertion was new to me.
His single-minded focus on
renewable energy is disturbing. Whether highly decentralized production of
energy is a panacea as he puts it remains to be seen. Who knows which forms of
energy will serve humans and nature best in the years ahead? Only god knows and
humans have to find out by trial and error liberated from government control.
About Jeremy Rifkin
An excerpt about him from his
foundation’s website (The Foundation On Economic Trends):
“Mr. Rifkin is the principle
architect of the European Union's Third Industrial Revolution long-term
economic sustainability plan to address the triple challenge of the global
economic crisis, energy security, and climate change. … Jeremy Rifkin has been an advisor to the
European Union for the past decade. [he] advised the government of Spain during
its presidency of the European Union …. also served as an adviser to President
Nicolas Sarkozy of France, Chancellor Angela Merkel of Germany, Prime Minister
Jose Socrates of Portugal, Prime Minister Jose Luis Rodriguez Zapatero of Spain”.
Well with advisors like this one should not be surprised about the malaise of
the Euro zone. Or does this reflect more on the quality of European, elected
leaders?
By glancing at his Wikipedia
entry and the about him on his foundation’s website, I suspect he is what
Germans refer to as a Weltverbesserer (to my limited knowledge, there is no
equivalent English translation, perhaps starry-eyed idealist, do-gooder) and he
is a leftist academic. Like many other leftist academics he seems to be prone
to shallow thinking. Beware of Weltverbesserer! Humanity has suffered great
losses due to such people.
From his bio, I also gather he
is a fervent environmentalist, thus his enmity to economics a la Adam Smith is
no surprise.
He is the man of the “European
Dream” (another of his books), while the American Dream is languishing. “Europeans,
by contrast, emphasize cooperation and consensus over go-it-alone approaches to
foreign policy.” Has he overlooked that the EU has disarmed to a point of being
a cuddly paper tiger.
His ideology seems to be
derived from the first and second law of Thermodynamics, which he interprets in
a particular way to suit his purposes. Who wants argue with the laws of nature?
Adam Smith, according to him, is passé because Adam did not understand these
two laws. To quote from an article by him published in the British The Guardian
on November 3, 2011 “The reason most economists just don't get it is that they
fail to understand that all economic activity is borrowing against nature's
energy and material reserves.” Ah, but a genius like Rifkin gets it! Karl
Popper would call him a proponent of historicism.
Socialism is dead, long live Socialism
A play on “Le roi es mort, vive le roi”. Central planning
is still alive and kicking. Power and control for those who pretend to know
what is best for the rest of us.
Is it not an irony of history
that the European Union adopted Rifkin’s Third Industrial Revolution? The fall
of the Iron Curtain is only a little more than two decades old. I also bet that
Chancellor Merkel is beholden to Rifkin’s ideas. Ms. Merkel grew up and lived
in the former GDR, while central planning was applied. She is the daughter of a
pastor and a PhD in physical chemistry. However, her political approach is more
akin to a politburo member.
Or in Mr. Rifkin’s own words
found in an interview with the Huffington Post dated 9/26/2011:
“Question: Other parts of the
globe, particularly Europe, appear to grasp the trends and solutions you
suggest in your book. Why are Americans lagging in this regard?
Rifkin: One of the reasons an overarching new economic game plan has
never been rolled out is not just because we need to cut back public
spending and reduce government deficits, but because the administration is missing, to quote former president George W.
Bush, the "vision thing." … What Obama is lacking is a narrative. … If President Obama clearly
understood the underlying dynamics of the five-pillar infrastructure of the
next great industrial revolution and how the parts connect, he might have been
able to sell the American public on a comprehensive
economic plan for the country’s future.” (my emphasis). If the poor
President of the USA only understood the narrative the master planner bemoans.
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