The Magical Power of the Kilowatt-Hour
Guest essay by Tom Scott
The typical follower of this blog is likely more knowledgeable in math and the sciences than the average reader, so many of you will find the following quite obvious on an intellectual level, but the facts below may still stimulate a new awareness of just how powerful is the concept of energy available at the flip of a switch.
The incentive to write down these brief thoughts came while reading from Dr. Roy Spencer’s blog the other day. There I came across this stupefyingly dumb quote from our White House Science Advisor, John Holdren . In a 1975 newspaper article in the Windsor Star, entitled “Too Much Energy, Too Soon, a Hazard”, he wrote:
“Finally, less energy can mean more employment. The energy producing industries comprise the most capital intensive and least labour intensive major sector of the economy. Accordingly, each dollar of investment capital taken out of energy production and invested in something else, and each personal consumption dollar saved by reduced energy use and spent elsewhere in the economy will create more jobs than are lost.”
To evaluate the above quote, consider the difference in productivity between the solar and coal power production industries. Both industries support about 174,000 jobs in the U.S. while coal provides about 150 times more power at this time (about 0.25% to about 39%). Hardly a winning substitution.
But can’t we (or the third world) live just as well without electricity?
To answer this, lets start with the term “horsepower” as it is rooted in real-world imagery. One horsepower is defined as 550 pounds of force displaced one foot per second. In other words, with one horsepower at hand one could start at sea-level and lift a 550 pound weight 1 foot higher every second. It was thought that a horse could do this kind of work on a reasonably regular basis, thus the name. On the other hand, it is hard to imagine a human generating this kind of power for more than a few seconds at a time.
It so happens that a kilowatt is about 1.34 times “larger” than a horsepower, or about 737 lbs raised one foot each second, or 100 kg raised 1 meter each second. If we assume than our electric motor and transmission are about 75% efficient (1/1.34), we would be right back to an output of 550 ft-lb of useful work from each KWH purchased. For each KWH we pay about 0.10 to $0.15 at retail prices here in the U.S.
The U.S. median household income is about $50,000 per year, which spread over 2,000 work hours would be $25 per hour. Historically an employer has loaded costs of about 1.4 times the pay rate, so the cost to the employer would be about $35 per hour. How does that wage compare to the work which can be done by the kilowatt-hour? At a price of 10 cents per unit, an employer could substitute 350 KWH for each man-hour of payroll. Assuming 75% efficiency, this equates to lifting almost 8000 one hundred pound bags of concrete 40 inches (one meter) each hour, eight hours per day, 250 days per year. For the rest of the world that is about 7,200 fifty-kilogram sacks raised one meter each hour. Would you be able or willing to do such work for 30 years in order to modestly raise a family and fund a small retirement? Not if you are human because it would be physically impossible.
So the next time you hear someone suggest that killing a job in the coal-based power industry and replacing it with one in the solar industry will lead to a better world, realize that each job so displaced will come with vastly reduced productivity. And the next time you hear a green advocate suggest that you can do manually what we are currently doing with the “help” of evil electricity, consider your child’s working life spent lifting 8000 one hundred pound sacks every hour for 25 or 30 years. Or until he/she dies trying.
Such is the magical power of the kilowatt-hour.
Put another way, let’s make those 100-pound sacks 50’s instead, since most people would struggle with lifting 100s, so 16,000 sacks = $25 worth of labor, or $.0015625 per sack. Let’s say someone could manage to lift one 1 meter every 10 seconds, or 360 per hour. That would mean a “wage” of about 56 cents an hour.
Whoooeee.
Many people fail to understand the basic benefits of capitalism and technology. The benefits come from making people’s jobs obsolete. They do not come from artificially providing employment. That is communism and it is definitely not good.
By making a job obsolete through technology, labour is freed up to go and create something new, thus adding to society’s total wealth.
The challenge comes inbetween a worker being made redundant and finding something new to do. This is where The Right get it wrong. Welfare is a reduction in pay because a machine has taken the place of a person. It is both moral and beneficial for society to compensate a person in this situation with welfare without placing any obligations on the person receiving it. Work is a privilege in a functioning capitalist society. Not a right. Not an obligation.
The replacement of machines making energy via fossil fuels with renewable ones requiring greater labour is a step backwards not forwards.
Creative destruction, Stossel calls it.
http://www.foxbusiness.com/on-air/stossel/blog/2009/11/06/creative-destruction
Holdren is an Economists nightmare. His reasoning is that of a Luddite.
There is a famou story from Milton Friedman, the champion of the anti-Keynesians.
Every reasonably intelligent economist understands that the only way salaries increase is with productivity increases. And then the only way to increase number of jobs is to grow the economy. Growing the economy means more energy expenditure at reasonable costs.
Folks are forgetting the cost of food for “human power” . To extract a hard days work from a human source costs 23$/ day to max them out. This can be replaced by 9 cents worth of electricity. humans are only 15% efficient at doing physical work and use very expensive fuel in the process.
The problem is that they redefine things in such a silly way. Costa Rica recently went 100%, 24×7 on renewable energy for 75 days straight. Thing is they count hydro (78%) as renewable. Before you say “well DUH” check out how many states don’t allow hydro to be counted as renewable.
There in lies the problem. The Agenda 21 crowd redefines and moves the goalposts every time to get their pet energy sources into the picture no matter how costly or inefficient.
If you want to see wind done right check out otherpower.com and see how folks who are off the grid do it. Not a bunch of theoretical types sitting in an ivory tower.
I love their explanation “not because we are trying to make some sort of political or environmental statement, but because these are the only options available. And we refuse to move to town”.
I was wondering what 0.3 of a Mexican was.
Slightly less than a third of Juan?
finally – when I read
‘Finally, less energy can
mean more employment’
the finally decision is between slavery and industrialization.
full stop. Hans
Well, up until Skynet becomes “self aware”..
Holdren’s comment is a variant of the “broken window” economy: repairing post-riot damage increases the GDP of the city.
Holdren’s comment also turns the African village in which women walk miles each day for firewood and water into an economic success story: full employment.
The communist in him approves of this. In Cuba, a man might have a job looking after 3 goats. He is thus fully employed, has a “respectable” job, and shares in the economic benefit of the community. All is good.
Efficiency leads to changes in the labor force. Lamplighters go unemployed until they transition to a new line of work. Someone somewhere is always figuring out how to make something more efficient. And so is leading to unemployment as those efficiencies are realized.
Not all workers displaced by the inexorable march of economic progress find alternate employment quickly.
Thus it is an economic reality that “the poor will always be among you.”
This is doubly true when we consider that some people simply will not sustain the proper effort required to earn money, and some will be disabled from gainful employment.
This is yet another truth from the Bible. Bible critics should account for the range of truths that become evident as we learn these lessons in different ways, such as by the advent of economic studies.
Yeah, but I guess JH is right if you replaced coal with wind, you would multiply employment by 150! Maybe we could all be employed just walking a treadmill to generate electricity for our masters.
“walking a treadmill to generate electricity” Like in hospitals to keep the lights, HVAC and elevators working in case John Holdren ever needs to visit one.
Treadmills could work, exercise is good for your health as well. It’s a win-win.
Holdren is essentially correct in the broad scope. Turn off ALL the electricity and ALL the machines currently providing consumer goods at the lowest possible price to the masses and there will indeed be more employment because we will all have start making everything by hand again. One machine producing 100 pairs of sneakers a minute will be replaced by 100 people together making 20 pairs of sneakers per hour and charging a 10X higher price for them. And then there will be horses and oxen being whipped to plow farm fields again when Holdren shuts off FF for tractors and combines which will cause starvation because yields will drop to 1/5 what they were. But then starvation will ultimately LOWER the unemployment rate and save the planet – just as Holdren says it will! Save the planet for whom exactly I haven’t figured out…
My dad said that the horses ate one third of the crop they could produce. He never did have any use for horses. I don’t know how the horse feed figures in your 1/5 drop but relying on horses will result in a lot of horse dudu in the streets. Why don’t we see the horse dudu in the western movies?
“relying on horses will result in a lot of horse dudu in the streets.”
Why would you expect there to be streets?
Like most of the ignorants who get themselves elevated to power, Holden is uneducated in most areas that he spouts off about. This reminds me of one of my favorite quotes.
But wait that’s how one gets elected; have a loud and vociferous opinion on any subject while remaining in a state of ignorance.” I think that is how you are supposed to vote as well.
In so far as broad-scope economics is, or should be, just common sense, I regard Murray N Rothbard as just plain wrong.
Common sense is not very common in this modern era. Henry Hazlitt’s “Economics in one lesson” which was written to dispel most of the common fallacies of economics went on for an entire book. Those who understand economics and the boneheaded ideas of most Americans would never question Rothbard’s quote.
Heck, there are still those who think that socialism is workable despite the evidence of the 20th century!
Mark, I think we are agreeing from different directions!
markstoval : “Common sense is not very common in this modern era.“. That’s why I’m an advocate for basic education to be four Rs not three. Reading, ‘riting, ‘rithmetic and Reasoning.
Let’s get rid of computers too while we are at it.
That would immediately require about 50,000 new trainers, who would train 1 million new tax specialists in how to decipher byzantine tax code and complete and file tax returns manually.
Federal government itself would need to hire about 1 billion new clerks to manage the regulations that a much smaller number now do with the help of computers.
Well, Alx – at least that would necessitate going back to small government. Today it might just be too easy to create innumerable, and perhaps illogic, conflicting or outright stupid, laws, rules and regulations. Or rather, the temptation to do so may be too hard to overcome.
All one needs to do to understand Holdren is to internalize that Humans are a cancer to the Earth.
The Parity of slavery strikes again. Holdren and his Democrats buddies think they a chosen ones and the rest of us are peons, worst yet slaves. After all the Democrats have always believed they are the elite and can have the good life on the backs the peons or their slaves. They really hate anyone or anything that will change that, after all they are the chosen ones, don’t you peons know this.
If you do not employ young men of 17 to 25 you either have to fight wars or face violent revolution. unemployment and poverty create unrest. Idle hands…and all that.
Your best hope would be to develop A.I. as a weapon to kill them or take the Soylent Green route. Fun times.
“you either have to fight wars or face violent revolution.”
Well, at least that is likely to happen when you (sooner or later have to) cut off welfare.
It’s easy to take care of young men. China will have to use the traditional method when that restless and unhappy group realizes there are not nearly enough marriage-age women for them.
Makes perfect sense. Do you have any idea how many employees it takes to pull a plow?
The stupidity of this administration is confirmed daily.
John Holdren and friends wish they had more power over people and their lives in order to impose more of what they declare is for their own good.
Just re-read Henry Hazlitt “Economics in one lesson”. You can create jobs by replacing machines with manual labor – i.g. by pulling freight trains by manpower.
“Employment”- along the lines of that in North Korea. Holdren is a dangerous idiot.
Yup, shoes will definitely be a limiting factor in treadmill energy production. The rest, not so much….
[Note: ‘shoes’ s/b ‘shine’. Typo fixed at request of commenter. ~mod.]
Holdren is a dangerous ideologue.
The fundamental exchange mechanism of civilization is barter, aka, trade of goods and/or services. Money is a human invention that makes barter or trade more convenient.
Society consists of parasites and hosts. The hosts engage in barter facilitated by fiat money. The parasites extract from the economy, consuming part of that which the hosts produce.
Natural economics (independent of the convenience of fiat money) mandates that the only increase in prosperity for a society results from increase in productivity. Readily available energy tremendously increases productivity. Cost of a product or service includes the cost of energy. The earth does not charge.
Make reducing cheap energy sound desirable.
Make reducing the number of those consuming energy sound desirable.
Hide from their minions the fact that the adverse consequences includes them and their children.
OH! What a web they weave!
Here is John Holdren, and others, on their view of energy and the public:
“Giving society cheap, abundant energy would be the equivalent of giving an idiot child a machine gun.” —Dr. Paul Ehrlich, Anne Ehrlich, and Dr. John Holdren, Ecoscience: Population, Resources, Environment, 1970, p. 323
So the American public are idiotic children (he’s obviously a parent), and we’re going to kill people if we have cheap, abundant energy. I believe studies have proven that societies advance and life expediencies increase with easy access to abundant energy.
When someone is in an active conversation, they may state something in a way that could be misinterpreted, or they just didn’t say it in they way they meant. BUT, when you actually write a book, what you put in it, you have time to develop your thoughts and refine your message, what you truly think of the subject. This man is dangerous, he’ll say whatever needs to said at the time, to get his objective. This man is no friend to free people.