To Compete With China, We Need Cheaper Energy

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Why did England industrialize first? Cheap energy.

Now, China has some of the cheapest energy in the world. To compete, the US and Europe need to cut energy costs.

England’s Early Energy Cost Advantage

In the early 18th century, England’s massive coal reserves meant energy was some of the cheapest in the world.

Energy cost more than 10 times as much in France or China. No wonder England could afford to produce tons of manufactured goods and undercut other countries!

England industrialized decades before France or the US, and centuries before China. That’s how decisive an energy cost advantage can be.

China’s Energy Costs Are Among the Lowest in the World

Today, China has far cheaper energy than the UK or Germany.

France is able to produce electricity at about the same price as China.

America is actually slightly undercutting China on electricity costs. We’re the only major country that can say this.

But China is building power plants far faster than we are. Soon, they may undercut us on energy costs.

Germany shows us what happens once energy costs spiral out of control. They’re rapidly losing industry, with VW cutting 100,000 jobs.

To Lower US Energy Costs, We Have to Build

China has cheap energy because they’re building power plants like crazy.

Meanwhile, building anything in the West is very difficult. Environmental reviews, lawsuits, and other NIMBY barriers mean plants take many years to build, if you can do it at all.

We already have much higher labor costs than China. To compete, we need to massively undercut them on energy.

Wrap-Up

England used cheap energy to industrialize. Centuries later, China is following the same playbook.

For America to compete, we need dirt cheap energy.

So if you’re building a startup that lowers energy costs or makes it easier to build power plants, I want to hear from you!

To Compete With China, We Need Cheaper Energy

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