Does economic theory trump physics?

mulp · #11 (**permalink**) 06-11-2008, 02:02 PM

Quote:

Originally Posted by cedenot

Using this theory, shouldn't we run out of food? Even if population decreases.

The planet earth is an open system receiving a constant input of high energy which is reradiated as more diffuse lower energy. As long as the Sun continues in its current profile, admitting something that will be true for a short time of most likely 10-100 million years, the Sun can be the source of energy which complex organic machines can convert to matter, which humans like almost all life on the planet then ingests and reconverts from matter to energy.

jebe · #12 (**permalink**) 06-11-2008, 03:30 PM

Quote:

Originally Posted by mulp

We can deduce from the comments of conservatives who call for more drilling on the land of the American people, and paying oil companies to extract the oil owned by the American people without paying for the oil owned by the American people, that conservatives believe the law of supply and demand will increase the supply of oil.

A physicist believes the only way you can increase the quantity of matter is by converting energy into matter.

Who is correct on the theory of the quantity of oil?

- The conservative economist who believes raising the price and government subsidies will increase the quantity of oil?
- Or the physicist who believes burning fossil matter converts matter to energy and increasing the price of matter isn't going to convert energy to matter?

i thought the " quality " of oil depended on the amount of energy in order to refine it.

mulp · #13 (**permalink**) 06-12-2008, 01:00 AM

Quote:

Originally Posted by jebe

i thought the " quality " of oil depended on the amount of energy in order to refine it.

Economists think oil is oil, so quality is not relevant. The bitumin that makes Venezuela the world's largest known deposit of oil is considered same as the West Texas oil that was cheap to refine, but is now pretty much just wishful thinking.

mulp · #14 (**permalink**) 06-15-2008, 01:21 PM

According to economists, high prices will increase the quantity supplied. When the price of corn increases, the quantity of corn grown will increase. When the price of wheat increases, the quantity of wheat grown will increase. When the price of rice increases, the quantity of rice grown will increase.

Again we have physics trumping economic theory. Physics is not allowing more corn to be grown in Iowa and most of the midwest. Physics is not allowing more wheat to be grown in Australia. Physics is not allowing more rice to be grown in Asia.