The Solar Powered Death Spiral For Utilities Begins – In Hawaii

A solar powered death spiral for utilities and conventional power has already begun. Solar power is proving to be more disruptive, more quickly than anyone imagines. People think “Solar needs to get to grid parity before it’s widely adopted.” This is simply false. There is no one price for electrical power. Electrical power has different […]

Ability, Demand, and Innovation: Businesses Hire when they are Swamped with Demand

Jesse Livermore had a great tweet: I think this tweet was a response to Henry Blodget’s post on job creators:  ”Now, again, entrepreneurs are an important part of the company-creation process. And so are investors, who risk capital in the hope of earning returns. But, ultimately, whether a new company continues growing and creates self-sustaining jobs is […]

Innovation requires making stuff

Bill Gates has a favorite author, Vaclav Smil, who has an understanding on how most innovation takes place.  “You also say that manufacturing is crucial to innovation. Most innovation is not done by research institutes and national laboratories. It comes from manufacturing—from companies that want to extend their product reach, improve their costs, increase their […]

The Economy almost certainly needs Bubbles.

Larry Summers shocked everyone recently with his speculations on the links between growth and bubbles. some people slightly agree, others do not. For example, Clive Crook disagrees with the premise we need bubbles for the economy to work properly. I have been thinking about the link between bubbles and growth for nearly 3 years. Back […]

Deflation, Overcapacity, and Low Demand Incentivize War

People who live in the U.S. are world-famous for throwing lots of stuff away. When we have too much, we just throw it in the garbage. But what if this too much happens on the level of the entire society? We are living in a world right now where we have too much on a […]