As energy becomes more scarce and there is upward pressure on product price, corporations will try to compensate with increases in economies of scale and larger market share. For economies of scale to reap its full rewards, globalization is necessary for selling product into world-wide markets. This all makes sense for the few wealthy owners of the mega retailers {Amazon, Wal-Mart), corporations (GE), banks (HSBC) , manufacturers, and media. Their goal is to equip large factories with the latest in automation or low paid workers and essentially put less efficient producers out of business, taking their market share and using it to pay for their capital investment. The end result is a relatively small elite owning most of the “business” and its capital and many unemployed human RNA, expected to take advantage of the resultant marginally lower-cost items even though they no longer have income.

At some point, those that are excluded from the benefits of globalization because they’ve lost they’re incomes or have been downgraded, have thoughts of escaping the economy that fails to support them. Some will want to set up their own solar electricity production, grow their own food, collect their own water, but this runs counter to globalization and the need to spread the cost amongst many consumers. It’s likely that legislatures, captured by globalists will eventually pass laws to prohibit opting our of the “market”. You may eventually be imprisoned in BAU until it’s too late to escape it. Economies of scale investments go broke if their market share is falling. Are the massive investments made by the energy corporations falling because the “market” can no longer afford to support the investment? Why do people want to reverse globalization and the pursuit of economies of scale? Perhaps there is no longer enough net energy being produced to support those thrown from the old production lines, even though the wealthy are doing fabulously well with their large, internationalized corporations that continue to take market share from smaller, less efficient producers.

The current desire to reverse globalization in the face of decreasing net energy and bring the jobs home means that the prices of many products will go up on a per unit basis and therefore the jobs that are imagined to come home will be lost anyway. The products are only viable if they can be sold globally using massive factories at low cost. Already new technology and globalization is losing the race with decreasing net energy. The economies of scale will disappear as incomes decrease and product cannot be sold, even product produced from a globalized, highly automated corporation.

To back away from globalization probably means collapse as many products can only be produced on a globalized scale. To continue globalization in the face of falling net energy results in a huge pool of people without jobs and no means to purchase the “economies of scale” product. Prior to collapse, those owning and running the multinational corporations will likely own most everything, at least before the entire thing collapses by shrinkage of markets and/or net energy.

 

800px-Overcrowding_of_turkeys_found_during_an_undercover_investigation_at_a_factory_farm_in_North_Carolina_owned_by_Butterball__02

Economies of scale at work on a North Carolina turkey farm. On Thanksgiving Day we thank God for making humans special {systematic} so we could devise ways to consume and enslave the ecosystem, like these turkeys. But these aren’t the only turkeys. Humans are in some cases just as packed into their little cells, their lives run by clocks, and rewarded with the next shovel-full of crap to be thrown into the trough. I wonder if humans will ever be genetically modified  to work within their cellular/factory environments more pacifically and efficiently. We humans seem to be putting on weight in our enclosures, not unlike the incarcerated livestock we eat.

 

From Investopedia:

Q: How do economies of scale work with globalization?

A: From Sean Ross at Investopedia.

“Globalization – the integration of factors of production and inclusion of consumer groups from different markets around the world – facilitates unprecedented achievements of economies of scale for producers. Access to increased numbers of laborers, investors, markets, resources, technologies and business models through globalization can theoretically maximize productive efficiency to a level consistent with the size of the world’s population.

Economies of Scale

Economies of scale refers to the phenomenon of diminishing marginal costs associated with each additional unit of output. A company experiences economies of scale as it specializes and is able to produce extra goods with fewer and fewer input costs.

According to economic theory, economies of scale are the natural consequence of specialization and the division of labor. It is one of the chief drivers of economic growth. However, firms do not realize economies of scale in perpetuity; there is a maximum level of efficient output for any given inputs, and operations may sometimes extend too far and cause diseconomies of scale.

Globalization

With access to new inputs and potentially more profitable markets, globalization can increase specialization and operational efficiency. The practical consequences of globalization include lower costs to consumers, access to capital for wealthy countries, access to jobs for poorer countries, increased competition and higher global productivity.

As globalization spreads the division of labor to a global scale, countries are able to export labor and production processes that they are relatively less profitable at and instead specialize in labor that is relatively more profitable. This result can be seen in factory jobs being driven out of the United States, which frees up capital for highly technical, highly productive fields such as IT. Companies are able to pursue higher degrees of efficiency and increase their economies of scale.”

 


The economies of scale production works for a while to feed ever expanding expectations of growing populations, but will eventually fail to serve consumers that have little net income and little net energy in world where externalities will be increasing the costs of production.

As temperature extremes become common (over 100F) many chickens will die as will many humans if not kept in an air conditioned environment. Most of our utilities rely upon a economies of scale economics to function. The loss of incomes means unpaid utility bills and disconnects and eventually failing infrastructure from deferral of maintenance. Black-outs and failures of service soon follow.

The reversal of globalization in favor of nationalism is likely to hasten the global economic collapse, even though lack of net energy will eventually do the same thing. Without a renewable, plentiful source of energy and population/consumption controls, the economies of scale of globalization will eventually lose their market share and be unable to cover their fixed costs. Large economies of scale investments will no longer be made as markets shrink.