Monday, March 2, 2009

Natural Economy vs National Economy

We have discussed the reality that the fate of California (and other states of course) can determine the fate of our national economy. California's current natural economy is troubled because they are running out of water.

The natural economy can "fail" and destroy the state economy. "This ain't no party. This ain't no disco. This ain't no foolin' around" goes the song.

Yes, this is stone cold for real:
Gov. Arnold Schwarzenegger declared a state of emergency Friday because of three years of below-average rain and snowfall in California, a step that urges urban water agencies to reduce water use by 20 percent.

"This drought is having a devastating impact on our people, our communities, our economy and our environment, making today's action absolutely necessary," the Republican governor said in his statement.

Mandatory rationing is an option if the declaration and other measures are insufficient.

The drought has forced farmers to fallow their fields, put thousands of agricultural workers out of work and led to conservation measures in cities throughout the state, which is the nation's top agricultural producer.

Agriculture losses could reach $2.8 billion this year and cost 95,000 jobs, said Lester Snow, the state water director.
(Breitbart, emphasis added). Everyone knows that jobs are the fundamental player in our national recovery plans at this time.

The fact that environmental failure in California is already causing job loss shows us that the natural economy is already impacting the state and national economy.

One of the reasons that global climate change must be taken seriously, then, is the fact that it can damage or destroy national economies.

Nations printing more money or borrowing more money won't start or stop the rains, droughts, storms, and rising oceans.

It will take the greatest of efforts to keep damage to the environment down to current levels, but we are not going to be able to make that goal.

Saving civilization may be the only option remaining to us.

The continuation of Beavis & Butthead national policies will guarantee both natural and national economic collapse at some point in our future or our children's future.

The notion that economy can prevail over environmental concerns is a false notion at the macro level. When the environmental penalty comes it is too late to avoid its impact on economy.

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