Growing an economy is like increasing the energy in the system - it can’t just spring forth from nowhere; it has to come from something. You can do more with what you have by using it more efficiently, but this places an obvious ceiling on growth.


Traditional macroeconomics holds that the march of technological progress increases economic efficiency, thereby improving everyone’s lot. But this does not account for the magnitude of our economic growth over the last two centuries. I would contend that the astounding economic growth we have experienced since the dawn of the industrial revolution and capitalism is due more to a constantly rising energy supply than to efficiency increases.