Apocollapse Now

I may have missed it, but in my twelve years as a cost analyst for the Department of Defense, including the highest level of certification from the Defense Acquisition University, I never once heard of Baumol's Cost Disease. Nonetheless, the late William Baumol was famous for his discovery of how the cost of services rises implacably while the cost of goods decline. Cost analysts could be spared much consternation through this principle, but it also clarifies the situation for the man on the street.

When you look at the declining productivity gains over the past few decades, much of the slowdown can be attributed to this "disease," wherein more and more employment has shifted away from manufacturing and into services. Manufacturing processes are more easily automated than most service jobs, so the shift to large-scale, centralized manufacturing has improved efficiencies and profits in that sector.

From Albert Bates at The Great Change

I have built my projection of our economic future on the concepts in The Limits to Growth, which, at this point in our catabolic collapse would begin to exhibit a remission of the cost disease, i.e. as we retrace the stages of our rise to the information age, we will revert to more manufacturing employment, albeit on a more local, less automated level. This regression will make the price of goods rise at a rate comparable to the price of services.

The changes coming to manufacturing also apply to farming, since our farming is almost all conducted on factory farms nowadays. The graph that tells the story of the world's predicament has appeared here before, but looking at the details of when peaks occur in food production, then other industrial output, and finally services per capita shows the order in which we should expect to see prices rise. Even now, we are seeing the price of food rise faster than inflation. Those rising prices, first in food and then other manufacturing, will attract more entrants into the production sectors. Entrepreneurs start locally. Most of those new businesses will not easily scale as they will struggle with the same growth limiting forces that gave them an underserved niche in which to launch their business.

A retrenchment from globalism will drive much of this return to small scale. The current administration's overt and inadvertent dismantling of trade and foreign relations will facilitate this retrenchment. In that respect, their steps and missteps will aid the transition to localism. There is a difference, however, between localism and nationalism. Old Blowhard promotes the latter, but has no interest in the former. Additional steps must be taken with respect to commerce that will foster localism in order to keep employment up and pollution down as we revisit industrialism and later descend into agrarianism.

Bye-Bye Miss American PI (Post-Industrialism)

Back around 2011, when I first began reading The Archdruid Report, John Michael Greer detailed his outlook for America in posts about "catabolic collapse." He throws that term out often and even describes it in macroeconomic terms, but all it means is collapse that feeds on itself, just as the opposite (anabolic growth) means compounding growth caused by self-reinforcing vitality. Though Greer frames his analysis around individual civilizations, he arrives at pretty much the same place I did by drawing from the World3 (Limits to Growth) and BEST models - America eventually becomes a herder/cultivator society. He sees America's collapse starting in 1974 when the rust belt started seriously rusting, and occurring thereafter in stages wherein America devolves into a contented third world country (or several countries) as early as 2030 and continuing to decline if we ...

Fast forward another few decades, and another round of crises arrives, followed by another respite, and another round of crises, until finally peasant farmers plow their fields in sight of the crumbling ruins of our cities.

Though this collapse takes decades, it is many times faster than the centuries-long rise from wilderness settlements to superpowerdom. Greer's description doesn't distinguish between a herder/cultivator and an agrarian society (I edited my own oversight two posts back), but according to  The BEST Model (pg. 1-9), one of the distinguishing differences is that agrarians have the advantage of farming with fossil fuels and metal tools. Agrarians can still form empires, but the best herder/cultivators can do is organize groups of villages.

Perhaps schools today should be training kids on how to get by on the terms they are likely to encounter in their adulthood, but for those reading this today, let us consider the near-term implications of  the world collapsing relatively quickly from an integrative post-industrial economy with international democratic organizations to industrial economies with nationalist democracies. This is the destination Trumpist isolationism appears to favor. Soon after we have re-industrialized, more collapse will likely thrust us further down the chain so that, come 2030 or so, we may find ourselves rediscovering agrarianism under autocratic governments (Russia today) and decades later, after fossil fuels are no longer available, back in the herder/cultivator stage under familial rule.

Photo by 1nelly

Seeing as how we should expect further collapse of our post-industrial system back to a straight industrial system in the next decade, factory jobs should be prized by jobseekers. At least Trump is aiming to bring those jobs back home. Small business manufacturing is a good way to go - for the environment, cultivation of long-term relationships, and adjustment to a more fragmented nation. Employment at a factory out in the countryside might offer a chance to segue into agriculture when the factory shuts down. Ideally, living among relatives engaged in small farming or other sustainable vocations would position one for the next level of collapse to hunter/cultivator villages. Ecoforestry is ideal for this latter stage. Since all of these changes could take place over just a few decades, it will be important to have a job with enough time off to allow one to acquire the tools and skills that will enable one to live in the future as it spirals down. We are 42 years into the catabolic collapse and only have a few decades left before America begins to look like it did before the Europeans arrived.