Showing posts with label wealth. Show all posts
Showing posts with label wealth. Show all posts

Friday, August 30, 2019

Redefining Waste

Further testing of my Timelines model has revealed that what I've been calling "waste" should be redefined. Instead of representing resources that are unusable, it represents resources we are using that should not be used. Specifically: whatever we consume that is more than half the world's total resources is waste, which I project is currently 20% of all that we consume and 12% of all resources. As a consequence, "wants" are that we consume that is more than our needs and does not include waste.

By this definition, waste first appeared in 2004 and is projected be greater than what we consume for needs in 2027, four years after global population reaches its maximum and begins declining. Since it is equivalent to other resources (instead of being un-consumable as with the previous definition), it is treated likewise by the world's population in every respect. The only un-consumable resources are those removed from the total by "self-sustained impacts" that are projected to have begun by 2015.

ABOVE: Projected fractions world ecological resources in the "Green" simulation using the new definition of waste.

Difficulty reproducing global wealth statistics was the initial clue that "uninhabited regions" (data points with no people or other species) were problematic. The estimate of relevant resources couldn't be justified with the more refined approach that now includes a better estimate of the numbers of people who have common characteristics related to other global variables with many more data points. 

Experimenting with different ways of allocating consumed resources over the world population including that "waste" resulted in two fundamental observations about both economics and consumption when the statistics were reproduced which are obvious in retrospect. First, the exchange of resources and money (that represents both resources and the value of exchange) predominantly flows from people who consume less to people who consume more. Second, the resources consumed for more than needs are distributed in proportion to the ratio of available resources to resources consumed for needs – the reciprocal of the people-to-nature ratio that I discovered is a basic driver of many of the variables I've been tracking.

Although the new definition of waste and allocation of consumption significantly change the projections of related global variables within the population, they have no effect on projections of the entire population over time and support general behaviors found with the earlier version. For example, consuming wants in addition to needs is still associated with a switch from an egalitarian to unequal distribution of wealth, but the details of that switch are different; and the upcoming changes more resemble a cascading failure than a "switch" to a new regime, driven as they are by the crashing of the world's population due to overconsumption (an aspect of which being increased waste).

ABOVE: Distributions of global variables associated with major changes in per-capita wealth projected by the "Green" simulation for dates shown below the Phase axis. Displayed are Phase = lifecycle phase, L = life expectancy, h = happiness, Fert = fertility, Cum P = cumulative population, R = total consumption, Cap = capacity, and C = per-capita consumption. The years projected for when part of the population begins to enter a new phase are shown as Epochs.




Thursday, August 22, 2019

A Brief History of Simulated Wealth

About sixteen hundred years ago, people on average began consuming more than what nature had allocated to meet their basic needs. At that point, personal wealth switched from depending on access to people to depending on access to resources. This enabled wealth to flow to fewer people who could trade and consume more resources. Extraction of resources increased environmental degradation which made fewer resources available for trade (the difference being "waste"). Perhaps as soon as 2025 there will be more waste than what people consume for basic needs, and more people will die than are being born. With fewer resources and fewer people, wealth will become more evenly distributed until everyone is dead. 

That scenario is based on a simulation of civilization, with a likely future where people do not work to reduce waste that is increasing faster than they are creating it (such as greenhouse gases that by amplifying climate extremes and chaos are making more of the world uninhabitable). In an alternative future projected by the fictional denizens of the simulated world "Hikeyay" featured in my Simulated News blog, total consumption is humanely forced down until 2040 so natural ecosystems can assist fighting climate change, resulting in wealth being cut to 1/6 of its starting value this year and wealth inequality dropping by more than half while waste is totally removed. Waste could come back with a vengeance if its external sources aren't disabled, but the means of stopping it cannot be done with wealth compensation if additional consumption is to be avoided.

The inherent dependency of wealth on per-capita consumption and transactions (proportional to the square of population) is also true of economic activity (embodied in gross domestic product) both as an observation and as a fundamental aspect of any economy. If everyone is consuming the same amount, such as meeting their basic needs, people's economic activity and wealth (the amount of resources being exclusively used) will vary with differences in population between groups. If people are consuming different amounts of resources (such as when consumption exceeds basic needs), then those who have the most resources (as wealth) will be at the focus of the most activity.

Performing functions such as removing waste would undoubtedly require some consumption of resources to create, deploy, and maintain any technologies involved. Offsetting existing consumption is one way to avoid this problem, which governments traditionally accomplish by collecting taxes and ensconcing wealth as capital "owned" by its citizens that cannot be traded by them. Other species (as our species once did) perform many such functions as part of meeting their basic needs, and as "resources" meeting the basic needs of others, therefore making that work and its results essentially free. Using other species in this way is ideal if we are to limit our consumption, while using institutions such as government is justifiable only until existing consumption can no longer be offset, such as when taxes keep citizens from meeting their basic needs. 

In the admittedly unlikely future of Hikeyay, people will work together to improve the scope and health of natural ecosystems while reducing their personal consumption and population to what can be maintained with the amount of available resources projected for 2040 by a coordinating institution that collects and processes observations from around the world. In the worst case, externally increasing waste is unstoppable and people end up barely meeting their basic needs until diminishing resources crash the population. In the best case, a stable population consumes the same amount per person as the world did around 1920. This is what I see as the best case for us too.


BELOW: L = life expectancy, h = happiness, Fert = fertility, Cum P = cumulative population, World P = world population, R = total consumption, Cap = capacity, C = per-capita consumption. Year of plot indicates associated phase with dark triangle below x-axis.



Friday, January 16, 2015

Year Of Validation

It is now a year since I made the first projections into the future using my population-consumption model. At that time, I had identified three representative scenarios of what would happen after 2008, when the model showed humanity using up all of the valuable ecological resources that weren't already enlisted in maintaining civilization (technically, the number of "environments" people had created equaled the number of possible environments using available resources). A newly published academic study indicates that consumption of major resources other than energy reached a peak around 2006, apparently corroborating this critical point in the model's projection (which was later refined to 2009).

A few months ago, the WWF's latest Living Planet Report famously highlighted the fact that animal populations dropped by little more than half between 1970 and 2010. This too is consistent with my model, which in its last iteration showed a 55% drop in the Living Planet Index (LPI) over the same period. The model uses the LPI as a proxy for the amount of available ecological resources, and the amount of resources we are using as proportional to the global ecological footprint, so this and the consumption study are significant data points in validation of the model.

One other aspect of the model appears to have been partly validated over the past year, which I referred to in a previous blog post. As happiness increases, it takes more resources to become happier; and above a certain threshold (82%), consumption (of ecological resources) becomes negative, which I interpret as the consumption of virtual resources. My model includes the observation that our economy is based on the valuation of environments that theoretically would provide maximum happiness, and in one of its first validation exercises, reproduced our unequal distribution of wealth as a result of the economy's positive valuation of the excessive happiness of a few people. Since money is used to trade real things, that money is expected to represent real resources (even though they are in fact virtual) and therefore it appears that the rich are hoarding a lot of resources and effectively stealing from everyone else. It is logical to assume that the excessive happiness is likely met by using other people rather than other parts of Nature, and this would manifest as what the rest of us would consider antisocial behavior, with an associated reduction in conscience and empathy that enables people to be treated as things to be used for gratification (what I've called the root of all evil). The studies I learned about seem to verify this assessment. For me, the scariest part of this analysis has been the capacity of a few people to own everything, especially given the complexity of the systems we all operate under and the physical limitations we all have in comprehending, much less managing, what's around us; that they would become sociopaths makes it even worse.

The three projection scenarios I started with a year ago were based on simple extrapolations of happiness over time, and its effects on population and consumption. Those with the most physical credibility resulted in a catastrophic decrease in population, starting soon. I followed those projections with a series of simulations, producing theoretical versions of the world using random values of variables my model had identified based on research into the past, and then generalized the results which I have since considered more reliable and used as the basis for the projections and recommendations that I've presented since then. Given how sensitive the projections are over the next two to five years, we should know soon whether the model is truly valid. As a scientist, I can't wait. As a person, I wish I could wait forever.

Tuesday, February 11, 2014

Happy Environments


My mathematical model of population and consumption now has an economic component that projects Gross World Product (GWP), global wealth, and wealth distribution backward and forward in time. The latter was aided by the lucky release of a new report on global wealth.

As people pursue happiness as defined in the model, they must seek and manipulate sets of conditions (what I call "environments") that maximize it. Economies are cultural tools for enabling this, so it's not surprising that they can be described in the same terms. One such term dominates this new view of economics: "happy environment."

People who have total life satisfaction occupy environments that are matched to all of their needs and wants. Such matches are uncommon, just like finding the perfect house. But if we could disassemble, move, and assemble all the environments we collectively have access to ("inhabited environments") to make environments that match as many people's wants and needs as possible, each of those environments would be a happy environment.

Our world economy doesn't explicitly traffic in happy environments (to my knowledge, this is a concept that I just invented), but it appears to do the equivalent. From what I can tell, it defines one set of happy environments for actual, physical conditions. It defines another set for all the ways those environments can be manipulated. Then it defines a third set for all the ways the environments and manipulations can be manipulated as abstract entities that embody their value. Mathematically, economic activity (such as that measured by GWP) is proportional to the square of the number of happy environments; and wealth is proportional to the cube of the number of happy environments.

One of the most controversial issues facing people today is the tremendous inequality in the distribution of wealth. If it was distributed purely on the basis of happy environments, this wouldn't be nearly as much of an issue as it is (though it certainly isn't issue for the few people who benefit from it). However, as I discovered while trying to find out how the model could reproduce the actual distribution, our economy apparently uses both happy environments and consumption to determine who has how much wealth, dominated by the latter. Our exhaustion of sources of new environments (and associated resources) has an already focusing effect on wealth distribution, which I plan to elaborate upon later, but this dependency on consumption makes it extreme.

Projections of our economic future follow the same trajectories as happiness and population, which are the factors that define the number of happy environments. Thus, we are probably at the peak of everything, and can expect it all to drop to zero by early in the next century (at the latest). I'm continuing to explore the alternative "best" case, which unrealistically relies on finding and using millions of Earth-equivalent biospheres over the next 800 or so years, which is what it would take to follow our preferred trajectory. If the model's assumptions are accurate that far into the future, then we will once again be at a peak, but it will be an ultimate one.

Sunday, December 25, 2011

Christmas Thoughts

This year was perhaps the most depressing one I can remember. Despite the fact that my personal situation didn't deteriorate (a small victory), world events and my research into the variables affecting the future of humanity made it clear that life will get a lot worse for everyone without some extreme changes to the way we live – changes that are extremely unlikely.

The focus for many people was on the huge wealth disparity caused by economic and political systems designed to concentrate and maximize personal power. Open rebellion surfaced in several countries, including my own, and those who have benefited the most from those systems predictably fought back. Redistributing wealth – the economic manifestation of power – and making politics more egalitarian (the essence of U.S. government, which has been corrupted here) may be the ultimate result if the disenfranchised get their way, but unless we reduce the overall ecological footprint of humanity in the process, their gain will be short-lived.

Feeling like there was unlikely to be a future worth being part of, stress overwhelmed me for several months this year. Rightly or wrongly, I dealt with it by attempting to live a normal life – normal for my particular socio-economic reality. Replacing and refurbishing the things and conditions in my life that were wearing out felt like binging, which I continued right through the holidays. I composed music that applied to normal situations, as opposed to the pieces created earlier as background for my apocalyptic visions (such as the subject of my novel "Lights Out"). My writing about the subjects that had preoccupied me suffered along the way, though I did keep up my reading, which in some respects was even more depressing.

I'm trying to get a better handle on visualizing and helping to create a future I can feel good about, and then share the results with others who are having similar problems and reactions. As a minimum, I've become better equipped to get to know the other creatures we share the planet with, which will be more healthy and informative. My writing over the coming year should reflect a more hopeful view of the world, where I will also share the results of my experiences. The year will, of course, be dominated by politics, and I expect to have a lot to say about that as well.

Friday, October 14, 2011

Conservatively Successful

If I were still a conservative, here is what I might be thinking...

We walk around with our smart phones, music players, and computer pads when we're not attending meetings with our personal computers primed to share our electronic creations with others while we drone on about abstractions aimed at manipulating the lives of others to achieve the half-conceived goals of our masters. Work in this artificial world allows us to keep a lifestyle that depends on increasing the amount and power of our abstractions at the expense of the physical world outside, where creatures and increasing numbers of people are forced to eke out a much harder living, and die younger from the pollution and decreasing resources we leave them with.

Although we are far from being the masters of the universe, we imagine someday being the next best thing. Competition is the key. Beat out more people, just like we pass cars on the highway, and we might have a shot at the top, or at least being very comfortable until we die at a very old age. Increasingly, we find ourselves out of work for months at a time, and must hustle to ingratiate ourselves with the masters or their minions, competing even from home for a chance of getting back into the game. Our high-tech tools keep us prepared for our inevitable re-entry, with fresh skills and the all-important appearance of success.

Rumors and a growing stream of finely filtered news suggest that our world may be teetering on the brink of collapse, but the consistency of our immediate environment belies this option, along with the outrageous, almost science fiction quality of the information. The polished promises of a better life, buttressed by realistic stories and multimedia descriptions, are much more believable than the apocalyptic predictions using complex, scientific reasoning that numbs our minds while trying to scare us into radically changing the world that gives our lives meaning. Still, the weather, the spiking prices of everything from fuel to food, and the increasing dissonance with reality that we feel when we hear our leaders speak, all contribute to the sense that we better not totally dismiss those scary suggestions.

Maybe we'll come out near the top if everything else goes to hell. It may be our only hope of survival. We have an obligation to try, don't we? Isn't that what life is all about? The alternative is to be a loser, like those other people, and that's totally unacceptable. They lost because they didn't hang on, or took more responsibility than they should have – responsibility for others, or the impact they had on others -- not just for their own success, personal responsibility, which is what really matters. If you care about other people, except your friends, family, others like you, and of course the masters of the universe, then you're doing the world a great disservice. At least, that's what Fox, Rush, and the real economic experts tell us.

Some suggest that if people and species die because of our actions, that makes us murderers. If we accept that everyone and everything is connected, then we are potentially all murderers. That can't be true, can it? They must be wrong, if we are to maintain our innocence or at least our perception of it. If we accept that our unwillingness to accept more than personal responsibility, our drive to the top, is causing most of the problems we hear about, then the guilt may be too much to bear. No, clearly they are wrong.

God clearly favors the rich and powerful, no matter what their faults. Therefore, it follows that they can't be wrong about the important things. Aside from the occasional lottery winner, liberal movie star, and trust fund baby who didn't get the right genes, the masters of the universe got to be the masters because they proved themselves worthy.

Giving the most people what they think they want and convincing them that it's worth more than it took for you to make it – that's the true test of success. “God helps those who help themselves,” after all. If someone can't do it as well, or doesn't accept that it's worth doing at all, then they will get what they deserve: poverty. As for those other creatures: they were put here to serve us; if they won't, then they deserve what they get, even if it's extermination. Yes, that's the way of the world, and we have nothing to feel guilty about.

At least that's what we tell ourselves, the true faithful. Yet, for some reason, we're getting smaller in number.