2023: The next Oil Crisis

[PC2]

We have cheap goods mainly because countries focus on export strategies to get US dollars for oil purchases.

Without that prices go up and our standard of living goes down.

Yes there could be currency pains, but economic damage from currency is limited by the fact that currency is only a small fraction of economic wealth and isn't what fundamentally drives economic success/failure.

We don't process natural resources, we are primarily a service economy remember?

Having a service economy doesn't mean it isn't mostly based on processing natural resources. In our case we lost our low value added manufacturing jobs. However high valued added manufacturing jobs are still a good option. For example we outcompete low cost labour regions on making airplanes. Flying is a good example of a service that is still mostly based on how good you are at processing raw materials. For example, the scarcity of airplane pilot knowledge/training is significant, but still much less than the scarcity of being able to produce the plane itself to offer the service.

[Varitok]

Which is why we invest in emerging industries. The idea that US power revolves around one industry is nonsense.

Except that the US refuses to invest heavily in those "emerging industries" because they are too busy being bought and sold by oil companies to keep the status quo.

[Theodarzna]

Yes there could be currency pains, but economic damage from currency is limited by the fact that currency is only a small fraction of economic wealth and isn't what fundamentally drives economic success/failure.

Having a service economy doesn't mean it isn't mostly based on processing natural resources. In our case we lost our low value added manufacturing jobs. However high valued added manufacturing jobs are still a good option. For example we outcompete low cost labour regions on making airplanes. Flying is a good example of a service that is still mostly based on how good you are at processing raw materials. For example, the scarcity of airplane pilot knowledge/training is significant, but still much less than the scarcity of being able to produce the plane itself to offer the service.

We process very little and produce almost nothing ourselves. How many actual industries still exist in the United States.

We are talking about a country of over 300 million, we are not all about to become ace pilots.

[PC2]

Except that the US refuses to invest heavily in those "emerging industries" because they are too busy being bought and sold by oil companies to keep the status quo.

In terms of perceived end products this is because they are currently sub-optimal in most cases. By investing in R&D the point is to increase the cases where they do perform the best in the future.

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We process very little and produce almost nothing ourselves. How many actual industries still exist in the United States.

This just isn't true. Aside from topping most countries on most raw materials such as mining, timber, and agriculture, we also produce a lot through high value added processes like semiconductor products.

We are talking about a country of over 300 million, we are not all about to become ace pilots.

Yes, there are many sectors and specializations, that was just one example.