Monday, August 21, 2023

This Can't Go On

For as long as any of us can remember, the world economy has grown a few percent per year, on average. Some years see more or less growth than other years, but growth is pretty steady overall. I'll call this the Business As Usual world.

In Business As Usual, the world is constantly changing, and the change is noticeable, but it's not overwhelming or impossible to keep up with. There is a constant stream of new opportunities and new challenges, but if you want to take a few extra years to adapt to them while you mostly do things the way you were doing them before, you can usually (personally) get away with that. In terms of day-to-day life, 2019 was pretty similar to 2018, noticeably but not hugely different from 2010, and hugely but not crazily different from 1980.

If this sounds right to you, and you're used to it, and you picture the future being like this as well, then you live in the Business As Usual headspace. When you think about the past and the future, you're probably thinking about something kind of like this:


I live in a different headspace, one with a more turbulent past and a more uncertain future. I'll call it the This Can't Go On headspace. Here's my version of the chart:


Which chart is the right one? Well, they're using exactly the same historical data - it's just that the Business As Usual chart starts in 1950, whereas This Can't Go On starts all the way back in 5000 BC. "This Can't Go On" is the whole story; "Business As Usual" is a tiny slice of it.


Growing at a few percent a year is what we're all used to. But in full historical context, growing at a few percent a year is crazy. (It's the part where the blue line goes near-vertical.)

This growth has gone on for longer than any of us can remember, but that isn't very long in the scheme of things - just a couple hundred years, out of thousands of years of human civilization. It's a huge acceleration, and it can't go on all that much longer. (I'll flesh out "it can't go on all that much longer" below.)

The first chart suggests regularity and predictability. The second suggests volatility and dramatically different possible futures.

by Holden Karnovksy, Cold Takes |  Read more:
Images: Cold Takes