The Rise of Technocracy

The Rise of Technocracy

In 1934, the Technocracy Movement, founded by Howard Scott, an American engineer and economist, published a detailed plan for replacing the US economy with a resource-based system. The plan, titled "Technocracy Study Course," proposed a radical overhaul of the country's economic and social systems, with energy as the primary unit of account. This movement, which emerged in the United States and Canada, was a precursor to modern systems thinking and ecological economics, emphasizing the importance of energy and resource flows in understanding economic systems.

The Technocracy Movement's Key Takeaways

At its core, the Technocracy Movement aimed to address the inefficiencies and inequalities of the industrial age. By focusing on energy accounting and technical analysis of industrial processes, the movement anticipated later developments in fields like industrial ecology and life cycle assessment. The movement's emphasis on resource optimization and efficiency also foreshadowed the modern concept of sustainability. In essence, the Technocracy Movement was a pioneering attempt to apply systems thinking to the economy, recognizing that economic systems are, by their very nature, interconnected and dependent on resource flows.

The Influence of the Technocracy Movement

The Technocracy Movement drew support from prominent figures like Upton Sinclair, a renowned American writer and social reformer. The movement also gained significant attention in the media, reflecting a broader dissatisfaction with the economic and social order of the time. The Great Depression, which had begun in 1929, had exposed deep-seated flaws in the capitalist system, and the Technocracy Movement's proposals for a resource-based economy resonated with many who felt disillusioned with the status quo.

Technical Analysis and Efficiency

One of the key innovations of the Technocracy Movement was its emphasis on technical analysis and efficiency. By applying the principles of scientific management, pioneered by Frederick Winslow Taylor, the movement aimed to optimize resource allocation and reduce waste. This focus on efficiency anticipated later developments in fields like industrial ecology and life cycle assessment, which seek to minimize the environmental impact of industrial processes.

The Technocracy Movement's approach to technical analysis also involved the creation of detailed energy accounting systems, which would track the flow of energy throughout the economy. This approach recognized that energy is a fundamental driver of economic activity and that resource allocation decisions should be based on a thorough understanding of energy flows. In this sense, the movement's emphasis on technical analysis and efficiency was a precursor to modern systems thinking and ecological economics.

The Importance of Energy

The Technocracy Movement's focus on energy as the primary unit of account was a radical departure from traditional economic thinking. By recognizing that energy is a fundamental driver of economic activity, the movement anticipated later developments in fields like energy economics and ecological economics. The movement's emphasis on energy accounting and technical analysis of industrial processes also highlighted the importance of resource flows in understanding economic systems.

In this sense, the Technocracy Movement was a pioneering attempt to apply systems thinking to the economy, recognizing that economic systems are, by their very nature, interconnected and dependent on resource flows. By focusing on energy and resource flows, the movement provided a more nuanced understanding of economic systems and their relationship with the natural environment.

Critique: Technocratic Utopianism

While the Technocracy Movement was well-intentioned and innovative, it has also been criticized for its utopianism. Critics argue that the movement's reliance on technical expertise as the primary basis for decision-making oversimplifies the complexities of human social and political systems. By ignoring the role of power, politics, and social inequality, the movement's proposals for a resource-based economy risked ignoring the very real challenges that lie at the heart of economic and social change.

What Most People Get Wrong

Most people view the Technocracy Movement as a quaint relic of the past, a utopian experiment that failed to deliver on its promises. However, this critique misses the point of the movement's proposals. The Technocracy Movement was not simply a utopian fantasy, but a pioneering attempt to apply systems thinking to the economy. By recognizing the importance of energy and resource flows in understanding economic systems, the movement anticipated later developments in fields like industrial ecology and life cycle assessment.

The Real Problem

The real problem with the Technocracy Movement is not its utopianism, but its failure to account for the complexities of human social and political systems. By relying too heavily on technical expertise and ignoring the role of power, politics, and social inequality, the movement risked ignoring the very real challenges that lie at the heart of economic and social change.

Actionable Recommendation

In light of the Technocracy Movement's emphasis on technical analysis and efficiency, I recommend that policymakers and business leaders adopt a more systems-thinking approach to economic development. By recognizing the importance of energy and resource flows in understanding economic systems, we can develop more nuanced and effective policies for promoting sustainability and reducing waste.

In particular, I recommend that policymakers and business leaders adopt a "resource-based" approach to development, which recognizes that economic systems are, by their very nature, interconnected and dependent on resource flows. By applying the principles of systems thinking and ecological economics, we can develop more sustainable and equitable economic systems that prioritize the well-being of both people and the planet.