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Q: Physical weight of modern economy ( No Answer,   2 Comments )
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Subject: Physical weight of modern economy
Category: Business and Money > Economics
Asked by: bonz0-ga
List Price: $5.00
Posted: 16 Aug 2005 06:29 PDT
Expires: 15 Sep 2005 06:29 PDT
Question ID: 556319
To resolve a pub argument, I would like to know whether, in a rich
modern economy, the physical mass of goods consumed per person is less
or more compared with, say, Victorian times or the sixties and what
the trend is. I argued it was, as more wealth today was in the form of
information and intangibles, whereas my friend argued that we had
simply outsourced the physical manufacturing to other, low labour cost
countries, and we consumed more physical "stuff" than ever.

Request for Question Clarification by pafalafa-ga on 16 Aug 2005 07:05 PDT
I'd guess it depends an awful lot on who and what you're comparing.  

Who has more physical stuff -- Bill Gates or Andrew Carnegie...?   Beats me!


But for the average citizen, there has been such a huge expansion of
the middle class in modern times, that I'd have to say we collectively
own A LOT more stuff (per capita) then the average -- much poorer --
person of bygone days.

But how to prove this.  Ah...there's the rub!

pafalafa-ga

Clarification of Question by bonz0-ga on 16 Aug 2005 08:31 PDT
I suppose I'm really thinking of the aggregate for a country. Just
anecdotally, there seems to be a lot less 'stuff' being made - where
there was a car factory, there's a call centre, a big port is now
smart waterfront flats, and a clothes factory is a software house.
Also, we do spend an increasing fraction of our income on services
like broadband internet, sports clubs etc.

But we all still spend money on consumer goods, and I'm sure buy more
cars, stereos, toys and so on than our parents even imagined. I can't
figure out which trend wins!

The motivation for asking is to get an idea of whether the
environmental effects of getting richer are good or bad, from the
whole earth point of view.

Request for Question Clarification by pafalafa-ga on 16 Aug 2005 08:54 PDT
Page 7 of this presentation:


http://www.epa.gov/sustainability/Workshop0505/7b_Rogich_Donald.pdf
Trends in U.S. Material Flows, 1975-2000Materials


might be the closest you get to an answer.  

The charts show that total material use in the US has increased quite
a bit between 1975 and 2000.

However, material use per dollar of GDP has actually fallen.  And
material use per capita varies, according to which graph (inputs, use,
or outputs) you choose to focus on.

You might want to show your barroom pal the graph on page 8, which
shows overall material use per capita increasing from about 20 tons
per person in 1970 to 25 tons per person in 2000.

You win!

Let me know if this does the trick for you.

paf

Clarification of Question by bonz0-ga on 16 Aug 2005 09:23 PDT
Thank you very much - loads of meat in that report. I think you may be
right - that may be the closest I get to the definitive answer.

I think I lose the argument though. Although on a per dollar (or
GBpound, being British!) of GDP basis, there is less "weight of stuff"
consumed as we get richer, this is outweighed (ha ha) by the increase
in GDP, so we do use more stuff in absolute terms. So I'll have to
find a different reason to be optimistic! I think it's an interesting
question though - I'll continue to do some research!
Answer  
There is no answer at this time.

Comments  
Subject: Re: Physical weight of modern economy
From: omnivorous-ga on 16 Aug 2005 07:03 PDT
 
Bonz0 --

I'm not even sure how to approach answering this question but another
researcher may find a clever way.  However, it's interesting to note
that A. Ernest Fitzgerald, a military contracting specialist who was
involved with serious cost overruns of the C-5A military transport
aircraft, once proposed writing contracts based on the weight of goods
delivered.  His statistics showed that it didn't matter if one was
delivering C rations or spy satellites, they all cost about the same
"per pound (or kilogram)".  I know that it takes some leap of faith to
get there (or some serious statistical smoothing!) --

"Arms, Politics and the Economy: Historical and Contemporary Perspectives" 
http://www.amazon.com/exec/obidos/tg/detail/-/0945999666/102-4028292-0466552?v=glance

Best regards,

Omnivorous-GA
Subject: Re: Physical weight of modern economy
From: myoarin-ga on 16 Aug 2005 14:54 PDT
 
Hi Bonz0,
When you say "per person", you are talking averages, and then we
definitely have more.  When we hear "Victorian Times", we get the
image of a heavily furnished Victorian sitting room, etc., but most of
the people were much worse off:  the servants living upstairs in a
small room, just owning their personal belongings and not a stick of
furniture, the poor laboring class in their cramped flats and hovels. 
Whereas today  -talking about Western Europe and N. America -  a much,
much larger proportion of the populace has more physical goods  -
remember to throw the auto on the scales too.  ;)

Relative to the sixties?  I think we now have more too  - on average -
even if cars may be lighter now.

And if the blokes at the pub come back and say that they meant world
wide, it is still true.  All the poorest people still only have the
clothes on their back, but in China and India there are now greatly
increasing middle classes, consuming and owning more than ever before 
- including their new cars.
Myoarin
Myoarin

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