The World Economy is constantly seeing loses and most of the GDP growth of the developed countries are declining. If you see the trend of the economic survey of the past few decades you will know the real reason behind it. But to understand what is wrong we need to understand how the economic revolution works. So the three main key factor that completely change the industry or the economy are
1.Communication-How the business communicate with each other?
2.Power-Which resources are required to power the business?
3.Transpotation- How the goods are been transported?
The First Industrial Revolution
The First Industrial Revolution was started by the British in the year 1800s between 1830 to 1845. Three main key factor that completely changes the industry or the economy are
1.Communication- Invention of Telegraph
2.Power- Use of Coal As Fuel
3.Transpotation- Steam Engines
There was a total change in the technological mass manufacturing. The industrial revolution needed fuel and that fuel was Coal. The industrial revolution brought us the steam engines and due to the steam power we were able to build huge manufacturing factories which made the European countries very rich. It was the coal that completely changed the economy and brought an opportunity to produce new economic zones all around the world and fulfilling the demands of different markets.But we know that "The energy neither can be created or destroyed it can be just transformed into one from to another." Thus the coal deposits are also limited on earth and cannot be used for ever. In the early 1900s the coal prices went up and destroyed all major economies of that time. The real reason for that was the dependency on coal. Then came the Second Industrial Revolution.
The Second Industrial Revolution
The Second Industrial Revolution was started in the United States of America. The key factor for the change was to replace coal with fossil fuel. New Internal Combustion Engines were introduced and it was more effective and efficient than the old steam engines. The use of fossil fuel dramatically changed everything and all of a sudden the economic activity all around the globe increased by more than 10 times. The key factor that brought the second economic revolution were:
1.Communication- Invention of Telephone
2.Power- Use of Fossil Fuel
3.Transpotation- Internal Combustion Engines
Now almost every market is dependent on fossil fuel. Fossil fuel is used in almost every industry fertilizer and pesticides, construction materials, most of our pharmaceutical products, our synthetic products, our electricity, our transportation all are dependent on fossil fuel.
Current Economic Crisis
The dependency on fossil fuel has made all the economic markets rise and fall on the price of fossil fuel. In July 2008 the oil prices raised to record price 147$/barrel and when it hit that record mark the whole global economy shut down. That was the economic earthquake. The collapse of the global market 60 days later was an aftershock. Our policy leaders are still dealing with the aftershock not the earth quake. The reason of the economic crisis, was the entire industrial revolution was all dependent on the carbon deposit of the previous period of the history. So currently this is a sunset of the great industrial revolution. We are going to a transition and this is the reason the global economy is suffering.
We need a sustainable and low margin fuel which can grow our production and strength our economy. The answer to that question is very simple the use of solar and wind energy. We need to slower down our dependency on fossil fuel and start the use of renewable energy on a large scale. The key factor that are needed to bring the Third Industrial Revolution are:
1.Communication- Internet Of Things
2.Power- Use of Renewable Energy
3.Transpotation- Electric Engines Powered By Renewable Energy
The technological shift is being taking place but the speed of the transformation is really slow. Most of the Government are hesitating to transform because of the past investment done for the fossil fuel industries. The dependency on fossil fuel will surely bring such global crisis in the future and only the renewable energy can save the global market and completely change how we do business .