• NoneOfUrBusiness@fedia.io
    link
    fedilink
    arrow-up
    4
    ·
    3 days ago

    so the added value is only the cost of imported gas or uranium or whatever,

    Except, if I’m not mistaken, wind also doesn’t need much labor, meaning there’s actually a proportional amount of labor is available to be used elsewhere in the economy, so in effect you’re getting (more or less) free energy and free labor. And don’t forget the economic value of not being tied to political upheavals in the Middle East or Russian war crimes in Ukraine and the lower bar for economic undertakings due to cheaper energy a la Jevon’s paradox. Now I don’t know enough about economics to coneifm or deny the €7 number, but you’re underselling the impact here.

    • Left as Center@jlai.lu
      link
      fedilink
      English
      arrow-up
      1
      ·
      edit-2
      3 days ago

      Freeing the manpower offsets production to other areas. A net gain for the countries, but the workers will still generate a similar amount of value from an economic standpoint. The gain is already taken into account into production prices, which themselves already include the countries productivity. On the scale of the union and all that is produced, the productivity increase from wind will be very very small.

      The rest is a great political gain, but won’t impact macroeconomics much, as energy markets are worldwide. Even the positive impact on the trade balance won’t change the numbers much (even as they change greatly the financial stability of EU).

      So it is a very real gain, and if you get all these arguments together it is pretty obvious, just the purely economic result when looking at the economy as a whole is way more subtle that “hey, free money”. It’s really just reallocation. (Macro and micro economics are really two different beasts).