Tuesday, April 10, 2012

MIT Prediction: World Economy will Collapse 2030

The following news may make you feel a bit uneasy but non the less it is important for people to be informed. A study called The Limits to Growth is looking very depressing to say the least. It was commissioned by an international think tank called the Club of Rome and during the year 1972; the report found that if civilization continued on its path toward increasing consumption, the global economy would collapse by the year 2030. Population losses would follow, and things would generally fall apart all over the world, painting a grim picture at what might happen in the future.
The study was and still remains controversial, with economists doubting its predictions and saying they cant agree with the notion of imposing limits on economic growth. Australian researcher Graham Turner has examined its assumptions in great detail during the past several years, and apparently his latest research falls in line with the report’s predictions, according to Smithsonian Magazine. The world is on track for disaster resulting in turmoil that would cause nothing short of global pandemic, as stated by the magazine.

The study was initially completed at MIT of which it relied on several computer models of economic trends and estimated that if things didn’t change much, and humans continued to consume natural resources at the current pace we do now, the world would run out at some point. Oil will peak (some argue it has) before dropping down the other side of the bell curve, yet demand for food and services would only continue to rise as is natural with the rapid population increase. Turner says real-world data from 1970 to 2000 tracks with the study’s draconian predictions: “There is a very clear warning bell being rung here. We are not on a sustainable trajectory,” he tells Smithsonian. It isn't hard to see how we are using so much resources that the planet simply cannot continue to sustain itself. 

Well the big question now is that if this is impossible to fix? Well the answer is No, according to both Turner and the original study. If governments enact stricter policies and technologies can be improved to reduce our environmental footprint, economic growth doesn't have to become a market white dwarf, marching toward chaos and utter destruction. But just how to do that is another thing entirely and knowing the lack of political order and change, this will be the greatest challenge to face our close future. 

MIT, posci


  1. I wouldn't put much faith in this model. The market will correct itself. The cost of oil will be too high, and businesses/governments/economics/markets will be forced to seek out other (hopefully sustainable) methods.

    1. well true but remember that resources have a date of "expiration"

  2. This is fairly disconcerting, but hopefully we will pull through! Hoping you post again soon!