The World Economy Is Becoming Unglued; Models Miss Real-World Behavior

The world’s economy is at risk of becoming “unglued” due to inadequate energy supply, which will lead to infighting, scarcity of goods, and political fragmentation. Fossil fuel reserves are running out, and history shows that economies tend to grow and collapse in cycles. Current trends in oil supply, interest rates, and debt levels suggest we are in a crisis period. The world’s total energy supply must increase to support population growth and prevent collapse. Energy density and storability are crucial for feeding the population and maintaining cities. Added complexity increases wage disparities and makes the system more fragile. Models show that the economy is constrained by the need for reinvestment and resource availability. Transitioning to a renewable energy system alone is unlikely to solve these challenges.