"Energy is money" is a provocative analogy that highlights the deep interdependence between energy and economic value. At its core, it means that energy is the foundational currency of productivity, wealth creation, and modern civilization—more fundamental than fiat money, which is just a proxy for it. Here’s a breakdown of why this idea holds water: 1. Energy Enables All Economic Activity Every good or service requires energy to produce. From mining raw materials to manufacturing, transportation, heating, computing, or even thinking (your brain runs on ~20 watts), nothing happens without energy input. Historical correlation: Economies grow in lockstep with energy consumption. The Industrial Revolution exploded when coal unlocked massive mechanical work. The 20th century’s growth rode on oil. Today, GDP per capita scales almost linearly with per capita energy use across nations. Example: A factory producing $1M in goods doesn’t create value from thin air—it burns fu...
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