Neoclassical growth theory is the dominant perspective for explaining economic growth. At its
core are four implicit assumptions: 1) economic output can become decoupled from energy
consumption 2) economic distribution is unrelated to growth 3) large institutions are not
important for growth and 4) labor force structure is not important for growth. Drawing on a
wide range of data from the economic history of the United States this book tests the validity
of these assumptions and finds no empirical support. Instead connections are found between the
growth in energy consumption and such disparate phenomena as economic redistribution corporate
employment concentration and changing labor force structure. The integration of energy into an
economic growth model has the potential to offer insight into the future effects of fossil fuel
depletion on key macroeconomic indicators which is already manifested in stalled or diminished
growth and escalating debt in many national economies. This book argues for an alternative
biophysical perspective to the study of growth and presents a set of stylized facts that such
an approach must successfully explain. Aspects of biophysical analysis are combined with
differential monetary analysis to arrive at a unique empirical methodology for investigating
the elements and dependencies of the economic growth process.
