Saturday 4 August 2012

Shock and Ore: David Graeber's ignorant (or duplicitous) sound bite

“There’s not enough metal in the earth’s crust 

for every Chinese to have a car”

--- David Graeber, Charlie Rose, 4 August 2012 (HK).  Author of “Debt: The First 5,000 Years”.
Pretty catchy sound bite. 
But is it true?
No.
He’s wrong by a factor of between 50 and over 200.  (Facts and figures below the fold).
Graeber was talking to Charlie Rose, about his book and his political philosophy.  That, in short, is a kind of Anarchist Progressivism.  Despises capitalism and modern democracy.  Calls for economic decisions to be made by some undefined “getting together” of people to make decisions for “the common good”. Against consumerism (of course) and preaching the whole neo-Malthusian "we're running out of resources" gig.
He’s influential – on Charlie Rose after all – and yet wrong on this simple, clear, and incorrect statement.  If he’s so wrong about that (or, perhaps worse, knows it’s wrong and still duplicitously says it, because it sounds scary), then what else is he wrong about, or deliberately misleading us about?
[Calculations below the fold]
UPDATE (8 Aug): I sent following email to Charlie Rose's program, and got their acknowledgement below:

[my email, 4 Aug, to charlierose@pbs.org]: 
I always enjoy Charlie Rose on Saturday's Bloomberg here in Hong Kong.
On this morning show (HK time) guest David Graeber made a statement along the lines of:
"There's not enough metal in the earth's crust for every Chinese to have a car".
This statement is false and badly so.
I thinks it's significant as it casts doubts on his other statements.  
See here for the stats.
Sincerely, Peter F, Hong Kong.
[Their answer, 7 Aug]:
Dear Peter,

Your message has been forwarded to Charlie. We appreciate your comments and continued loyalty to the program.

Thanks!

Charlie Rose Viewer Services


Steel:
Iron ore production per year: 2.5 billion tonnes
Iron ore resources:  “exceed” 800 billion tonnes
Iron Ore to Steel conversion ratio: 1.4 T ore per tonne of steel
Therefore, resources in terms of steel = 800/1.4 = 571 billion tonnes
Annual production of steel: 1.5 billion
Therefore years of resources at present production = 571/1.5 = 380 years
(using a different figure for reserves, 370 billion tonnes, gives 370/1.4/1.5 = 176 years)

Chinese population: 1.2 billion
Therefore one car/Chinese = 1.2 billion new cars

Amount of steel in the average car: 1800 pounds = 816 kg = 0.816 tonnes.
Extra steel required to build one car for every Chinese: 1.2 billion x 0.816 tonnes =  980 million tonnes of additional steel.
This is a little under 8 months of current annual production.

Let’s say we give every Chinese a new car each year.  Then the annual production of steel would have to go from 1.5 billion tonnes to about 2.5 billion tonnes.  That means the current resources would be good for 230 years instead of the current 380 years (or, on the basis of "reserves", to 105 years instead of 176 years).
Thus: Graeber’s statement, for steel, is wrong by an enormous factor, at the very least  around 105 times and as much as 230 times  (assuming that his statement meant that the earth would run out of iron ore in a year if every Chinese bought a car).

Have I forgotten anything?
Well, he did say “metal”, not just steel.  There’s also aluminium:
Aluminium:
Bauxite reserves: 38 billion tonnes
Bauxite to Aluminium conversion ratio: 4.4 T of ore per tonne of aluminium
Therefore reserves in terms of aluminium: 38/4.4 = 8.6 billion tonnes
Annual production of aluminium: 30 million tonnes = 0.03 billion tonnes
Therefore years of reserves at present production = 8.6/0.03 = 288 years

The average car has 236 pounds of aluminium = 107 kg = 0.107 tonnes
Extra aluminium required to build one car for every Chinese: 1.2 billion x 0.107 tonnes = 128 million tonnes of additional aluminium
This is about four years of production.  If we added this every year, that means current reserves would last 54 years (8.6/(0.03 + 0.128 = 8.6/0.158) instead of 288. 

So in this case, Graeber statement for aluminium is out by a factor of 54.

In all, then he's out by factors between 54 and 230.

Moreover, these calculations take no account of the following factors which will increase the years of production available for both steel and aluminium:
  • Recycling: Steel is one of the easiest metals to recycle and is already widely recycled.   Aluminium is also widely recycled. Recycling technologies for both are improving and the percentage recycled growing.
  • Use of steel in cars: steel itself is improving, using less ore per tonne of steel and the use of ultra-high strength steels is reducing the amount of ore used per tonne of steel and the amount of steel, by weight in cars.  Ref
  • Reserves: of iron ore don’t include the vast quantities on the sea beds. In fact, both iron ore and bauxite are amongst the most common elements making up the Earth.
Graeber either doesn’t know these facts, in which case his research is shoddy; or he knows them and has chosen to mispresent them for a nice scary sound bite.  In either case, it doesn’t reflect well on him: he is either a fool or a knave.
Is this important?
Well, yes.  Graeber is an influential spokesman – he was on the Charlie Rose show, after all.  He represents the “progressive” liberal left.  Or far left, more like it, as he’s a self-confessed Anarchist, not a political philosophy that has contributed to the world’s wealth, as far as I’m aware.  He predicts, indeed promotes, the downfall of capitalism, to be replaced by “democracy” which in his telling sounds very much like communism. As Charlie Rose suggested (kind of), he, Graeber, seems to be saying, as many have before, that communism had not failed, it just had "not been implemented properly".  Yet capitalism, for all its faults, has been responsible for the greatest increase in the wealth and health of nations in the history of mankind.  If you want to see a dramatic difference between capitalism and the kind of communitarianism that Graeber seems to prefer, look at a night satellite photo of South and North Korea.  It's startling: the former brightly lit; the latter in darkness.  North Koreans are not only way poorer, but in worse health, the average North Korean being about two inches shorter than his counterpart in the South.  The problem with Graeber's vision is that it's been tried and always -- always -- failed with no convincing evidence that it will ever succeed.
The importance of his misreprestation is that it influences those who would bring about the downfall of capitalism.  Little sound bites like his above will resonate with these people and won’t be checked, because it plays to their biases. And if he plays so wild and loose with this one quote, how can one trust the rest of what he says: the iniquity of debt, of the capitalist system, of democracy as it works today. 
All for some kind of Anarchist utopia, in his dreams.  Utopians have brought about some of the worst depredations on makind.  Think Hitler, Stalin, Mao, millenarian utopians all.