Good to hear from you Keith, 

REH

-----Original Message-----
From: Keith Hudson [mailto:[email protected]] 
Sent: Tuesday, April 02, 2013 6:38 AM
To: RE-DESIGNING WORK, INCOME DISTRIBUTION, EDUCATION; Ray Harrell
Subject: Re: [Futurework] Some sane talk, especially the structure thing.

At 20:55 01/04/2013, you wrote:
>http://www.nytimes.com/2013/04/01/opinion/on-the-economy-think-long-ter
>m.html?hp&_r=0
>REH

Prof Sachs may be good in the diagnostic part of his article but falls down
when describing three government policies as the way forward for America,
though I'll give him half a mark for one of them -- job training. As to the
other two -- infrastructure and low-carbon energy -- he really needs to
consult more.

Yes, he's quite right in saying that Germany is still doing well and that
it's due to their high expertise (and high percentage of apprenticeships) in
engineering. In this way Germany is able to export the more sophisticated
machine tools and producer goods to China. But German politicians must be
aware that China will be copying the more advanced products before too long.
It's a moot point whether Germany will always be able to keep ahead in order
to have something to export. A similar situation applies to America, too,
the difference being that it already exports too little to pay for its
consumer goods imports.

When we come to infrastructure and low-carbon energy, they're both desirable
but we already have one of them! (Sachs can't be reading the morning
papers!) It is shale gas. This is mostly methane. With four hydrogen atoms
to every carbon atom this is as low carbon a fossil fuel as it's possible to
be. He's also got something badly wrong in saying that shale gas fields
don't last for more than 20/30 years or so. In conventional natural gas
fields, gas may dissipate for many miles before being pumped up. In shale
gas fields, however,all the gas is intimately trapped in rock and unless
released by fracking it can't move. An individual well will only last for
about 20/30 years and can only release gas from a restricted star-shaped
cluster of pipes. The gas fields themselves will last centuries, according
to some estimates.

Maintenance of infrastucture is important but this, like many other
'muscular' part of the economy has become labour-extensive in recent years. 
It wouldn't do more than nibble at the numbers of the unemployed,
particularly of the young, and the long-term unemployed.

Keith 

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