Oil and Capitalism Fed the World
(Disclaimer) Although I agree with this article's message, I used ChatGPT to generate 98% of the content as an experiment. We are beginning a new world!
As a business person and entrepreneur, I tend to look at all problems as solvable and also tend to oversimplify complex issues. Take world hunger and poverty.
When researching worldwide poverty and food availability, there are two clear factors that have improved these conditions, namely oil and capitalism. It’s a little overly simplistic, but their influence on economic improvement is undeniable. The decrease in poverty over the last 40 years is substantial and is not by chance. It’s not to say that oil and capitalism don’t cause other problems, but considering a macro net view of their impact, it is overwhelmingly positive.
What influence has oil had on world poverty?
Oil, also known as, cheap highly available, and transportable energy, has played a significant role in the growth and development of the global economy over the last century, particularly in the transportation and energy sectors.
The widespread availability of inexpensive oil has helped to power the growth of industry and agriculture and has facilitated the movement of goods and people around the world. Furthermore, cheap energy has had a significant impact on reducing world poverty. Access to affordable energy is essential for economic growth, as it allows for increased industrial production, transportation, and communication. This, in turn, creates jobs and improves living standards for people.
Energy is also an essential input for agriculture, which is a primary source of livelihood for many people living in poverty. Cheap energy has allowed for the mechanization of farming, which has increased crop yields and improved food security.
In addition, access to cheap energy has also helped to improve access to education and healthcare in developing countries. For example, electricity has allowed for the operation of schools and hospitals in remote areas, which has helped to improve the overall education and health outcomes for people living in poverty.
Furthermore, cheap energy has also played a role in reducing poverty by increasing the affordability of basic necessities, such as cooking and heating. This has helped to improve living standards for people living in poverty.
Combining cheap energy and capitalistic innovation is a powerful duo
The impact of combining cheap energy and innovation on worldwide poverty is significant. Cheap energy and innovation are two key drivers of economic growth, and when they are combined, they can lead to a powerful multiplier effect.
Cheap energy allows for increased industrial production and transportation, which creates jobs and improves living standards for people. Innovation, on the other hand, enables the development of new technologies and products, which can lead to increased productivity and efficiency.
Together, cheap energy and innovation can lead to significant improvements in agriculture, healthcare, education, and other sectors that are critical for reducing poverty. For example, the combination of cheap energy and innovation in agriculture has led to the development of new technologies such as hybrid seeds, fertilizers and pesticides, and mechanization, which have increased crop yields and improved food security.
In healthcare, the combination of cheap energy and innovation has led to the development of new medical technologies and treatments, which have improved health outcomes and reduced the burden of disease.
In addition, the combination of cheap energy and innovation has also led to increased global trade and the spread of new technologies and products, which has further helped to reduce poverty by creating jobs and improving living standards for people in developing countries.
Overall, cheap energy and innovation are two powerful drivers of economic growth and development and when combined, they can help to reduce poverty and improve the lives of people around the world.
Through innovation we dramatically scaled food production
Several technologies have contributed to the increased food supply in the world over the last several decades. Some of the main technologies include:
Hybrid seeds: Hybrid seeds are created by crossbreeding two different varieties of a plant. They have higher yields and resistance to pests and diseases, which has led to increased food production.
Fertilizers and pesticides: Fertilizers and pesticides have helped to increase crop yields by providing plants with the necessary nutrients and by protecting them from pests and diseases.
Irrigation: Irrigation technology has allowed farmers to grow crops in areas with limited water availability, which has increased food production.
Mechanization: Mechanization in agriculture, such as tractors and combine harvesters, has increased efficiency and productivity in food production.
Biotechnologay: Biotechnology has led to the development of genetically modified crops, which are resistant to pests and diseases and have increased yields.
What is the source of all these innovations?
The source of these technological innovations is the United States, Germany, and France, all highly industrialized countries where capitalism is the dominant economic system and cheap energy was a key factor in all their development.
Hybrid Seeds
Hybrid seeds were first developed in the 1920s by George Harrison Shull, a botanist, and geneticist, who was working at the Cold Spring Harbor Laboratory in New York. But it was the companies of the United States and Europe who were primarily responsible for the commercialization and distribution of hybrid seeds.
In the United States, companies such as Pioneer Hi-Bred International (now a subsidiary of DuPont) and DeKalb Genetics Corporation (now a subsidiary of Monsanto) played a major role in the development and distribution of hybrid seed corn. Similarly, in Europe, companies such as Limagrain and Syngenta were involved in the development and distribution of hybrid seeds.
Fertilizers and pesticides
Fertilizers and pesticides are an important part of modern agriculture and have played a major role in increasing crop yields and improving food production. The countries primarily responsible for the innovation of fertilizers and pesticides are:
United States: The United States has been a major player in the development and production of fertilizers and pesticides for many decades. Companies such as Monsanto, DuPont, and Dow Chemical have been at the forefront of innovation in this field.
Germany: Germany has a long history of innovation in the field of fertilizers and pesticides, and companies such as BASF, Bayer and Hagedorn have been major players in this field.
France: France is also home to several major players in the fertilizer and pesticide industry, including Yara, Rhodia, and Aventis
Mechanization in agriculture
Mechanization in agriculture has played a significant role in increasing crop yields and improving food production. The countries primarily responsible for the innovation of mechanization in agriculture are:
United States: The United States has been a major player in the development and production of agricultural machinery for many decades. Companies such as John Deere, Case IH, and New Holland have been at the forefront of innovation in this field.
Germany: Germany has a long history of innovation in the field of agricultural machinery, and companies such as Fendt, Claas and Lely have been major players in this field.
France: France is also home to several major players in the agricultural machinery industry, including Renault, Massey Ferguson and Valtra..
There is a direct correlation between poverty and democratic freedom (aka a capitalistic economic system)
The poorest countries in the world tend to be more likely to have authoritarian forms of government, characterized by a lack of democratic institutions, lack of civil liberties, lack of rule of law, lack of transparency and accountability, and lack of effective checks and balances on government power. These governments tend to prioritize maintaining political power over economic growth and development, which can lead to a lack of investment in crucial areas such as infrastructure, education, and healthcare. Additionally, corruption and mismanagement of resources are common under authoritarian governments, which can further exacerbate poverty.
On the other hand, rich countries tend to have democratic forms of government. Democratic governments tend to be more accountable and transparent, which can lead to better governance and more effective economic policies. Additionally, democratic governments tend to have more open economies, which can attract foreign investment and promote trade.
Democratic governments also tend to have more robust social safety nets, which can provide support to those who are struggling economically. Furthermore, democratic governments tend to have better institutions, such as an independent judiciary and a strong civil society, which can help to ensure that resources are distributed more equitably and that corruption is kept in check..
.Capitalism is the dominant economic system in the world today and its most developed forms are found in the United States, Western Europe, and other industrialized countries. Also the source of most food innovation. Because capitalism is an economic system in which the means of production, such as factories and land, are privately owned and operated for profit, people get rich, and it’s one of the reasons they push the innovation.
We are at a unique time in world history where the largest percentage of the world’s population have shifted from worrying about eating each day to other “important” issues. Let’s not forget how we got here!
