Daniel Schmachtenberger “Bend Not Break Part 1: Energy Blindness”

Episode 05
January 26, 2022

(Conversation Recorded on January 14, 2022.)

On this episode we meet with founding member of The Consilience Project, Daniel Schmachtenberger.

In the first of a five-part series, Nate and Daniel outline the macro risks and pathways for civilization to 'bend' and avoid 'breaking' in coming decades.

In the Part 1 conversation, Schmachtenberger flips the script to interview Nate about the urgent problems his research and work on energy, money, and growth confront. Nate explains how we can come to understand energy blindness and the overlooked role of oil in consumption, production, and progress since the Industrial Revolution. The dominant narrative of human progress prioritizes capital and labor — but the omission of energy and materials leaves out a key component to understanding how the modern human ecosystem functions.

Further, Nate discusses how a growth economy will inevitably lead to increased energy production and consumption, and how new energy technologies like renewables end up creating more energy output, not less. Putting everything together, in outsourcing our decisions and planning to a market dependent on growth, we have not so metaphorically become an energy hungry superorganism.

Finally, Daniel and Nate look forward to answering: What are ways for us to prepare for a post-growth economy? How can we stay balanced in the face of existential crises? What type of policy can help shape a future that is yet to arrive, and how can we get ahead?

About Daniel Schmachtenberger

Daniel Schmachtenberger is a founding member of The Consilience Project, aimed at improving public sensemaking and dialogue. 

The throughline of his interests has to do with ways of improving the health and development of individuals and society, with a virtuous relationship between the two as a goal.

Towards these ends, he’s had particular interest in the topics of catastrophic and existential risk, civilization and institutional decay and collapse as well as progress, collective action problems, social organization theories, and the relevant domains in philosophy and science. 

Video

Show Notes

01:45 - Daniel’s website

02:30 - Nate’s work on Macro-issues: Reality Blind Vol. 1, Reality 101 Energy Videos, Economics for the Future - Beyond the Superorganism

02:45 - Daniel’s work on micro-issues

05:30 - Consilience Project

08:40 - Marvin Harris - Cultural Materialism

11:20 - Energy is the currency of life and a core driver of nature

12:12 - Climate warmed and stabilized, propelling agriculture and creating more energy surplus

13:20 - Since the 1800s we’ve been using stored fossil energy surplus 10 million times faster than it was sequestered

13:52 - Economics treats energy consumption like interest rather than principle

14:05 - One barrel of oil is equivalent to 5 years of human work (section 4.3)

15:10 - There is no substitute for energy

15:32 - GDP cannot decouple from energy

16:25 - The current financial system requires growth to continue  

16:50 - Central banks are blowing up their balance sheets to keep the system going

17:20 - We are a superorganism

17:45 - Technology is dependent on energy

19:30 - Fourth Law of Thermodynamics - Maximum Law Principle

20:22 - Kleiber's Law

23:08 - Anthropocene

23:45 - Inequality of consumption correlates with surplus

24:16 - Dunbar’s number

24:54 - Individual and cultural plasticity

25:20 - Exosomatic energy - the average american consumes >200,000 Kcals per day

26:13 - We use 100 billion barrel equivalents of oil, coal, and natural gas - equivalent to 500 billion human workers

29:07 - Stone age and overhunting

31:00 - Humans and livestock are 98% of mammalian biomass

31:17 - Total biomass is 700% of what it was 10,000 years ago

31:47 - 60% of nitrogen in our bodies today has a chemical signature from natural gas from synthetic fertilizer  

32:32 - Most of history our food system was a net energy producer, now it’s a net energy sink

33:15 - Our entire food system uses 10 times the energy that it produces

35:33 - Over the last 50 years GDP grew 100% while energy is growing 99% (Figure 2) 

36:24 - Energy link to GDP, some countries reduce energy intensity from exports and imports

37:03 - Global GDP is still very tightly coupled

38:00 - Financial manipulation also creates the illusion of decoupling

39:58 - Wide boundary thinking   

40:56 - Nate’s Hagens ~ Economics for the future - Beyond the Superorganism

41:11 - Jevons paradox

42:42 - Energy depletion

43:10 - Two categories of technology  

47:55 - We are at diminishing returns on oil 

48:25 - The nature of interest requires financial growth 

49:30 - Potential vs Kinetic energy  

51:24 - Renewables are actually rebuildables

51:50 - In 2019 the electricity demand grew by more than all the solar voltaic capacity ever built

52:40 - We are using more wood today than we were 100 years ago 

54:45 - ER/OI - Energy Return on Investments

57:33 - Intermittence and variability

58:21 - Fossil carbons have a higher total system return on investment

59:37 - 20% of total global energy is electricity and many things aren’t replaceable by electricity

1:00:37 - We traded out human labor for mechanical labor, exponentially growing our system

1:04:06 - We underpaid for the core economic input and don’t pay for the negative externalities

1:05:15 - Tim Garrett - GDP and CO2 chart

1:06:35 - Full cost accounting for life cycle of coal

1:08:50 - 95% of taxes are on human labor

1:09:57 - Relationship between material consumption and GDP is 1:1 over last 50 years

1:10:02 - 2lbs of non-renewable materials for every dollar of GDP

1:10:11 - An American baby born today will use 3.1 million lbs of non-renewable materials in their lifetime

1:10:45 - Lithium and electric cars

1:11:10 - Everything made from a barrel of oil

1:13:05 - Waste that comes from mining

1:14:55 - What it takes to make a computer

1:15:40 - 2022 current events in Taiwan

1:17:50 - Dick Gephardt and advance policy

1:18:14 - Untax Project


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Herman Daly: “Toward an Ecological Economics”

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Chuck Watson “From MAD to NUTS: Risk, Nukes, & Climate Change”