Rotational Motion, Windmill, Waterwheel, Steam Engine, Compressed Air and Electric Power

Posted by PITHOCRATES - July 24th, 2013

Technology 101

The Combination of Force and Current of Moving Water on a Waterwheel produced Rotational Motion

Through most of history man has used animals for their source of power.  To do the heavy work in our advancing civilizations.  And they worked very well for linear work.  Going long distances in a straight line.  Such as pulling a carriage.  Or a plow.  Things done outdoors.  A long place typically from where people ate and slept.  So animal urine and feces wasn’t a great problem.  But the closer we brought them to our civilized parts of society it became a problem.  For it brought the smell, the flies and the disease closer to our civilized part of life.

Animals were good for linear work.  But as civilization advanced rotational work became more important.  For as machines advanced they needed to spin.  The more advanced machines needed to spin at a fairly high revolutions per minute (rpm).  We have used animals to produce rotational motion.  By having them walk in a small circle.  To slowly turn a mill stone.  Or some other rotational machine.  But it was inefficient.  As animals can’t work continuously.  Especially when walking in a circle.  They have to rest.  Eat.  And they have to urinate and defecate.  Making it unclean.  And unhealthy.

The first great industrial advance was water power.  Using a waterwheel.  Spun by a current of water.  Either a large force of water moving slow and steady.  Like in a river.  Or a small force of water moving fast and furiously.  Like in a small waterfall.  This combination of force and current produced rotational movement.  And useable power.  The waterwheel produced a rotational motion.  This rotational motion drove a main drive shaft through a factory.  Gear trains could speed up the rpm produced by a slow river current.  Or reduce the rpm produced by a fast waterfall current.  To produce a constant rotational speed.  That was strong enough to drive numerous loads attached to the main drive shaft via belts and pulleys.

Compressed Air Systems allowed us to produce Rotational Motion at our Workstations

Water power was a great advancement over animal power.  But it had one major drawback.  You needed a moving current of water.  Which meant we had to build our factories on the banks of rivers.  Or under a waterfall.  One of the reasons why our first industrial cities were on rivers.  The steam engine changed that.  With a steam engine providing our rotational motion we could put a factory pretty much anywhere.  And the power of steam could do a lot more work than a moving current of water.  So factories grew larger.  But they still relied on a rotating main drive shaft.  Then we started doing something else with our steam engines.  We began compressing air with them.

A current of air can fill masts of sails and push ships across oceans.  Air has mass.  So moving air has energy.  We’ve used windmills to turn millstones to crush our wheat.  Where a large force of a slow moving wind current filled a sail.  And pushed.  But these small currents of air required large sails.  If we compressed that volume of air down and pushed it through a very small air hose we could get a force at the end of that hose similar to what we got with a sail catching a large volume of air.  This allowed us to create rotational motion at a workstation.  Without the need of a rotating main drive shaft.  We could connect an air hose to a handheld drill.  And the compressed air in the air hose could direct a jet of high pressure air onto an ‘air-wheel’ inside the handheld drill.  Which spun the ‘air-wheel’ at a very high rpm.  Spinning the drill bit at a very high rpm.

Compressed air was a great advancement over a rotating main drive shaft.  Instead of belts and pulleys connecting to the main shaft you just had to plug in your pneumatic tool to an air line.  The steam engine’s rotational motion would drive an air compressor.  Typically turning a crankshaft with two pistons attached to it.  When a piston moves down the cylinder it draws air into the cylinder.  When the piston moves up it compresses the air in the cylinder.  The compressed air exits the cylinder and enters a large air tank.  From this air tank they run a network of pipes throughout the factory.  From these pipes hang air hoses with fittings that prevent the air from leaking out.  Keeping the whole system charged under pressure.  Then a worker takes his pneumatic tool.  Plugs it into the fitting on a hanging air hose.  As they snapped together you’ll hear a rush of air blow out.  But once they snap together the joined fittings became airtight.  When the worker presses the trigger on the pneumatic tool the compressed air blows out at a very high current.  Spinning an ‘air-wheel’ that provides useful rotational
motion.

Electric Power generated Rotational Motion eliminated the need of Steam Engines and Compressed Air Systems

As good as this was there were some drawbacks.  It takes time to produce steam when you first start up a steam engine.  Once you have built up steam pressure then you can start producing rotational motion so the air compressor can start compressing air.  This takes time, too.  Then you need a lot of piping to push that air through.  A piping system than can leak.  It was a great system.  But there was room for improvement.  And this last improvement we made was so good that we haven’t made another in over 100 years.  A new way to provide rotational motion at a workstation.  Without requiring a steam boiler.  And air compressor.  Or a vast piping system charged with air pressure.  Something that allows us to plug in and go right to work.  Without waiting for steam or air pressure to build.  And that last advancement was, of course, electric power.

When voltage (force) pushes an electrical current through a wire we get useable power.  Generators at a distant power plant produce voltages that push current through wires.  And these wires can run anywhere.  In the air.  Or underground.  They can travel great distances at dangerous high voltages and low currents.  And we can use transformers to change them to a safer low voltage and a higher current in our factories.  And our homes.  Where we can use that force and current to produce useful rotational motion.  Using electric and magnetic fields inside an electrical motor.

Animals were a poor source of rotational power.  The windmill and the waterwheel were better.  The windmill could go anywhere but the rotational motion was only available when the wind blew.  Waterwheels provided continuous rotational motion but they only worked where there was moving water.  Keeping our early factories on the rivers.  The steam engine let us build factories where there was no moving water.  While an air compressor driven by a steam engine made it much easier to transfer power form the power source to the workstation.  While electric power made that transfer easier still.  It also eliminated the need of the steam engine and the pneumatic piping system.  Allowing us to create rotational motion right at the point of work.  With the ease of plugging in.  And pressing a trigger.  Allowing machines to enter our homes to make our lives easier.  Like the vacuum cleaner.  The clothes washer.  And the air conditioner.  None of which your average homeowner could operate if we depended on a main drive shaft in our house.  Or a steam engine driving a pneumatic system.

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Family Farms, Big City Factories, Fertility Rates and Federal Debt

Posted by PITHOCRATES - July 9th, 2013

History 101

The Mechanization of the Farm began a Migration from the Country to the Cities

Before the Industrial Revolution (1760-1830ish) if you worked you most probably farmed.  For most everyone from the dawn of civilization on the Nile, the Euphrates & Tigris, the Indus and the Yangtze farmed.  To produce food for the civilization for the good times.  And food surpluses for the bad times.  For having enough to eat was never a sure thing.  And surviving the winter was a challenge.

What early civilizations needed were a lot of people to work the land.  For large-scale farming could produce large harvests.  Enough to feed everyone during the good times.  During the winters.  And even the occasional drought.  But it could be a risky game to play.  Because a lot of people to work the land also meant a lot of mouths to feed.  Which meant everyone worked the fields.  Men.  Women.  And children.  Anyone who ate worked.  As they did on the family farm.  Which is why they had large families.  For the more children they had the more land they could work.  Allowing them to eat during the good times.  During the winters.  The occasional drought.  While having large food surpluses to sell.  Allowing them to build wealth.  Just like the landowners in the Old World.  The aristocracy.  Only instead of peasants working the land it was family.

But with the Industrial Revolution came change.  The steam engine mechanized farming.  Allowing fewer people to produce more.  Also, steam power allowed factories away from rivers.  As they no longer needed moving water to turn a waterwheel.  So factories filled our cities.  Creating a lot of jobs.  This and the mechanization of the farm requiring fewer hands to work the land began a migration.  Of people from the country.  To the cities.

The Migration from the Family Farm to the Big City got People used to Bigger Government and Taxes

The world modernized in the 1800s.  Food was never more plentiful.  Allowing more people to leave the farm.  And think about other things.  Like electrical engineering.  Nikola Tesla gave us AC electric power.  And the AC electric motor.  Changing manufacturing forever.  Those little spinning machines filled our factories.  And operated the machines in those factories.  Everything we ever made we made better and more efficiently thanks to the electric motor.  Allowing us to manufacture more than ever.  And manufacture more complex things.  Factories grew.  With many levels of manufacturing contained within.  Packing more people than ever in these factories.

The common perception of this industrial world is of sweatshops.  Child labor.  Soot and smoke casting a pall over overcrowded cities.  Where people packed into overcrowded housing.  Thanks to that migration from the family farm to the big city factories.  Which changed things.  Instead of people raising a large family on a large farm where there was plenty of room and plenty of food to eat these families were living in cramped apartments in the crowded city.  And they had to pay for the food they ate.  And the more mouths they had to feed the more money it took.  This was a big change.  Whereas on the farm a large family meant more food.  And more wealth.  In the city, though, more children meant less food for everyone else to eat.  And more poverty.

The growth of cities also caused another change.  When people lived on scattered farms they didn’t need any government services.  But in the crowded cities they did.  Homes had utilities.  And sanitation.  Cities also had streets.  Which the city needed to maintain.  Eventually there was street lighting.  And traffic signals.  Police departments.  Fire departments.  Schools.  And teachers.  All of these things cost money.  And we paid for them with taxes.  Getting people used to bigger government.  And bigger taxes.  Then the progressives entered government at the federal level.  Who wanted government to do at the federal level what it did at the local level.  Be mother to the people.  Instead of just doing those things the Constitution said it should do.

A Falling Fertility Rate forced the Government to go into ‘World War’ Debt just to pay for Social Security and Medicare

The fertility rate (the number of children a woman has during her child-bearing days) fell all during the 1800s.  As large families went from being wealth producers on the farm to poverty inducers in the cities.  While federal debt from the American Revolutionary War fell during the early 1800s.  The debt fell because there wasn’t a lot of federal spending.  So it wasn’t hard to retire that debt.  But that federal restraint didn’t last.  There was a spike in federal debt (as a percent of GDP) following American Civil War (1861-1865) as they had to borrow heavily to pay for that war.  But after the war the debt level did not fall back to pre-war levels.  A trend that would continue.  As we can see here.

Fertilty Rate versus Debt as Percent of GDP

There was another spike in federal debt following World War I (1917-1918).  But the debt level never fell back to pre-war levels.  Then the Great Depression and the New Deal (1930s) began another spike in Federal debt.  That World War II took to record highs.  And once again after the war the federal debt did not fall back to pre-war levels.  Then came President Reagan.  Who had the guts to call communism what it was.  A failed economic system that oppressed its people and was the greatest killer of the 20th century.  To push the Soviet Union into the ‘ash heap of history’ Reagan forced them to spend more than they could afford.  By ramping up defense spending to a level the Soviets couldn’t match.  Which ultimately won the Cold War (1947-1991, with Reagan delivering the knockout blow during his presidency (1981-1989) ).  But federal debt levels, once again, did not fall back to pre-war levels.  In fact, despite the peace dividend President Clinton inherited he still raised federal spending.  Just at a reduced rate than it was during the Cold War.  President Bush gave us Medicare Part D (drugs for seniors).  Then came 9/11.  And the War on Terror.  Then President Obama.  Who despite ending the Iraq War had the greatest budget deficits of any president.  As he spent more than any other president.  As he tried to transform the country into a European social democracy.  Sending out debt soaring to new heights.

FDR gave us Social Security in 1935.  At the tail-end of a long decline in the fertility rate.  Promising great benefits to future retirees.  Which LBJ added to during the Sixties with his Great Society.  During the post-war baby boom.  Perhaps assuming that increasing fertility rate would provide a lot of new taxpayers in the future when the weight of all these new government programs (FDR’s and LBJ’s) would be felt.  But then two things happened that they didn’t quite plan on.  The birth control pill and abortion created a baby bust following the baby boom.  Worse, thanks to modern medicine people were living longer into retirement.  Consuming more Social Security and Medicare benefits than anyone had ever imagined.  And just when the full force of those baby boomers was going to hit there were going to be fewer taxpayers around to pay for it.  Thanks to that baby bust.  More retirees paid for by fewer taxpayers.  A recipe for disaster.  Which is why debt soared towards World War II highs following the Cold War.  Even though there was no world war.  Because the cost of all those government benefits far exceeded the tax revenue.  Forcing the government to go into ‘world war’ debt just to pay for Social Security.  Medicare.  And everything else the federal government was providing so they could play mother to the American people.

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The Horse, Waterwheel, Steam Engine, Electricity, DC and AC Power, Power Transmission and Electric Motors

Posted by PITHOCRATES - December 26th, 2012

Technology 101

(Original published December 21st, 2011)

A Waterwheel, Shaft, Pulleys and Belts made Power Transmission Complex

The history of man is the story of man controlling and shaping our environment.  Prehistoric man did little to change his environment.  But he started the process.  By making tools for the first time.  Over time we made better tools.  Taking us into the Bronze Age.  Where we did greater things.  The Sumerians and the Egyptians led their civilization in mass farming.  Created some of the first food surpluses in history.  In time came the Iron Age.  Better tools.  And better plows.  Fewer people could do more.  Especially when we attached an iron plow to one horsepower.  Or better yet, when horses were teamed together to produce 2 horsepower.  3 horsepower.  Even 4 horsepower.  The more power man harnessed the more work he was able to do.

This was the key to controlling and shaping our environment.  Converting energy into power.  A horse’s physiology can produce energy.  By feeding, watering and resting a horse we can convert that energy into power.  And with that power we can do greater work than we can do with our own physiology.  Working with horse-power has been the standard for millennia.  Especially for motive power.  Moving things.  Like dragging a plow.  But man has harnessed other energy.  Such as moving water.  Using a waterwheel.  Go into an old working cider mill in the fall and you’ll see how man made power from water by turning a wheel and a series of belts and pulleys.  The waterwheel turned a main shaft that ran the length of the work area.  On the shaft were pulleys.  Around these pulleys were belts that could be engaged to transfer power to a work station.  Where it would turn another pulley attached to a shaft.  Depending on the nature of the work task the rotational motion of the main shaft could be increased or decreased with gears.  We could change it from rotational to reciprocating motion.  We could even change the axis of rotation with another type of gearing.

This was a great step forward in advancing civilization.  But the waterwheel, shaft, pulleys and belts made power transmission complex.  And somewhat limited by the energy available in the moving water.  A great step forward was the steam engine.  A large external combustion engine.  Where an external firebox heated water to steam.  And then that steam pushed a piston in a cylinder.  The energy in expanding steam was far greater than in moving water.  It produced far more power.  And could do far more work.  We could do so much work with the steam engine that it kicked off the Industrial Revolution.

Nikola Tesla created an Electrical Revolution using AC Power

The steam engine also gave us more freedom.  We could now build a factory anywhere we wanted to.  And did.  We could do something else with it, too.  We could put it on tracks.  And use it to pull heavy loads across the country.  The steam locomotive interconnected the factories to the raw materials they consumed.  And to the cities that bought their finished goods.  At a rate no amount of teamed horses could equal.  Yes, the iron horse ended man’s special relationship with the horse.  Even on the farm.  Where steam engines powered our first tractors.  Giving man the ability to do more work than ever.  And grow more food than ever.  Creating greater food surpluses than the Sumerians and Egyptians could ever grow.  No matter how much of their fertile river banks they cultivated.  Or how much land they irrigated.

Steam engines were incredibly powerful.  But they were big.  And very complex.  They were ideal for the farm and the factory.  The steam locomotive and the steamship.  But one thing they were not good at was transmitting power over distances.  A limitation the waterwheel shared.  To transmit power from a steam engine required a complicated series of belts and pulleys.  Or multiple steam engines.  A great advance in technology changed all that.  Something Benjamin Franklin experimented with.  Something Thomas Edison did, too.  Even gave us one of the greatest inventions of all time that used this new technology.  The light bulb.  Powered by, of course, electricity.

Electricity.  That thing we can’t see, touch or smell.  And it moves mysteriously through wires and does work.  Edison did much to advance this technology.  Created electrical generators.  And lit our cities with his electric light bulb.  Electrical power lines crisscrossed our early cities.  And there were a lot of them.  Far more than we see today.  Why?  Because Edison’s power was direct current.  DC.  Which had some serious drawbacks when it came to power transmission.  For one it didn’t travel very far before losing much of its power. So electrical loads couldn’t be far from a generator.  And you needed a generator for each voltage you used.  That adds up to a lot of generators.  Great if you’re in the business of selling electrical generators.  Which Edison was.  But it made DC power costly.  And complex.  Which explained that maze of power lines crisscrossing our cities.  A set of wires for each voltage.  Something you didn’t need with alternating current.  AC.  And a young engineer working for George Westinghouse was about to give Thomas Edison a run for his money.  By creating an electrical revolution using that AC power.  And that’s just what Nikola Tesla did.

Transformers Stepped-up Voltages for Power Transmission and Stepped-down Voltages for Electrical Motors

An alternating current went back and forth through a wire.  It did not have to return to the electrical generator after leaving it.  Unlike a direct current ultimately had to.  Think of a reciprocating engine.  Like on a steam locomotive.  This back and forth motion doesn’t do anything but go back and forth.  Not very useful on a train.  But when we convert it to rotational motion, why, that’s a whole other story.  Because rotational motion on a train is very useful.  Just as AC current in transmission lines turned out to be very useful.

There are two electrical formulas that explain a lot of these developments.  First, electrical power (P) is equal to the voltage (V) multiplied by the current (I).  Expressed mathematically, P = V x I.  Second, current (I) is equal to the voltage (V) divided by the electrical resistance (R).  Mathematically, I = V/R.  That’s the math.  Here it is in words.  The greater the voltage and current the greater the power.  And the more work you can do.  However, we transmit current on copper wires.  And copper is expensive.  So to increase current we need to lower the resistance of that expensive copper wire.  But there’s only one way to do that.  By using very thick and expensive wires.  See where we’re going here?  Increasing current is a costly way to increase power.  Because of all that copper.  It’s just not economical.  So what about increasing voltage instead?  Turns out that’s very economical.  Because you can transmit great power with small currents if you step up the voltage.  And Nikola Tesla’s AC power allowed just that.  By using transformers.  Which, unfortunately for Edison, don’t work with DC power.

This is why Nikola Tesla’s AC power put Thomas Edison’s DC power out of business.  By stepping up voltages a power plant could send power long distances.  And then that high voltage could be stepped down to a variety of voltages and connected to factories (and homes).  Electric power could do one more very important thing.  It could power new electric motors.  And convert this AC power into rotational motion.  These electric motors came in all different sizes and voltages to suit the task at hand.  So instead of a waterwheel or a steam engine driving a main shaft through a factory we simply connected factories to the electric grid.  Then they used step-down transformers within the factory where needed for the various work tasks.  Connecting to electric motors on a variety of machines.  Where a worker could turn them on or off with the flick of a switch.  Without endangering him or herself by engaging or disengaging belts from a main drive shaft.  Instead the worker could spend all of his or her time on the task at hand.  Increasing productivity like never before.

Free Market Capitalism gave us Electric Power, the Electric Motor and the Roaring Twenties

What electric power and the electric motor did was reduce the size and complexity of energy conversion to useable power.  Steam engines were massive, complex and dangerous.  Exploding boilers killed many a worker.  And innocent bystander.  Electric power was simpler and safer to use.  And it was more efficient.  Horses were stronger than man.  But increasing horsepower required a lot of big horses that we also had to feed and care for.  Electric motors are smaller and don’t need to be fed.  Or be cleaned up after, for that matter.

Today a 40 pound electric motor can do the work of one 1,500 pound draft horse.  Electric power and the electric motor allow us to do work no amount of teamed horses can do.  And it’s safer and simpler than using a steam engine.  Which is why the Roaring Twenties roared.  It was in the 1920s that this technology began to power American industry.  Giving us the power to control and shape our environment like never before.  Vaulting America to the number one economic power of the world.  Thanks to free market capitalism.  And a few great minds along the way.

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China keeps a Short Leash on both their Factories and the Migrant Workers that make them Hum

Posted by PITHOCRATES - December 23rd, 2012

Week in Review

The American Left likes China.  The way government partners with business.  And has dominion over business.  In China business can only do what government allows them to do.  For government picks winners and losers.  What the Left yearns for in America.  Not unfettered free market capitalism.  They like their capitalism under the yoke of government.  Where they can have high positions in government.  Or be outside advisers to government.  And have their hand on that yoke.  But it’s just not business that is under the government’s yoke in China (see Plight of teen prompts education debate, protest in China by John Ruwitch posted 12/22/2012 on Reuters).

As the end of middle school approached this year, Zhan Haite, 15, faced two choices: attend vocational school in Shanghai in the fall or move to her ancestral home in distant Jiangxi province to take the high school entrance exam and study there.

Taking the test and going to senior high school in cosmopolitan Shanghai, where she had lived since she was four, was not an option.

Zhan is one of millions of children whose parents belong to China’s vast migrant workforce and are barred from taking senior high school or college entrance exams where they live by half-century-old policies on household registration, or hukou.

The hukou system has split China’s population in two for decades, affording different privileges and opportunities to urban and rural residents. It is a major challenge for China’s new economic policymakers under Premier-in-waiting Li Keqiang as they try to push urbanization as an engine of growth…

China’s 230 million migrant workers have been the oarsmen of the world’s second-biggest economy but have long been treated as second-class citizens with unequal access to education, health and other services tied to official residence status.

The education issue has been particularly divisive…

Zhan’s father, Zhan Quanxi, was detained for several days this month after publicly protesting for education rights in central Shanghai, but criminal charges were dropped.

Still, his online posts have been met with sharp criticism from Shanghai hukou holders, some of whom have claimed to be part of a “Shanghai Defence Alliance”.

The verbal mud slinging reflects a battle over turf in big cities where high school seats can help students get into top universities, said Ralph Litzinger, an anthropology professor at Duke University who studies Chinese migrant issues.

First of all if you ever wonder why the Chinese (and others) are outscoring American students on tests this is why.  They study hard to get into the good high schools for a chance of getting into the good universities.  Where they will take the hard degree programs to get the good jobs.  They’re not floating through life partying and fighting for the decriminalization of marijuana.  And they’re not taking worthless degrees in the humanities so they can keep partying in college.  No.  The Chinese take their education seriously.  Which is why they are some of the most sought after recruits of leading high-tech companies.  Including those in the United States.

In addition to that state-capitalism utopia the Left sees in China there is also crushing disparity.  Where those migrant workers are good enough to feed their factories with cheap labor to sustain that export economy.  But they’re not good enough to sit at the same table with the big-city upper-classes.  Something the left is ostensibly against.  Both the cheap labor and class-based society.  Yet they yearn for the state-capitalism they have in China.  Because of the power the ruling elite has.  Which is what the Left wants.  Unfettered power.  And they would take what China has any day of the week.  As long as they are in the upper class.  And once they have the power they don’t need to worry about cheap labor.  Or care about it.  As they won’t need organized labor to keep them in power.

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2012 Endorsements: Alexander Hamilton

Posted by PITHOCRATES - October 18th, 2012

2012 Election

When Hamilton looked out Across the Vast North American Continent he saw Great Economic Opportunity

Alexander Hamilton was born in the British West Indies.  At the age of eleven he had to get a job.  As his father abandoned his family after losing all the family money.  Young Alexander worked at Cruger and Beckman’s.  a New York trading house.  A window onto the world.  And international trade.  Where young Alexander learned about the world.  And business.  He had a gift for numbers.  He was bright.  And driven.  Born in the British West Indies he was also something else.  A Founding Father without any state lineage.  With no provincial views.  During the prelude to American independence when other patriots talked about the states going their own way he was already thinking of an American union.  And only of an American union.

The British response to the Boston Tea Party was the Intolerable Acts.  Or the Coercive Acts in Britain.  Where the British put the hurt on Boston.  And Massachusetts.  To separate it and isolate it from the rest of the colonies.  Reverend Samuel Seabury took to the papers and argued against uniting the other colonies to support Massachusetts.  That the people should support their king.  And Parliament.  And not the spoiled, trouble-making people of Boston.  Hamilton took to the papers and argued in support of union.  And Boston.  Warning the people that this was just the beginning for Britain.  More taxes would certainly follow.  Hamilton warned the people to put away their sectional differences.  As this attack on one was an attack on all.  And that if they gave up on Boston it would only be a matter of time before other colonies met the same fate.

That was all well and fine during the warm months of summer.  But the American colonies were part of the British Empire.  Which was a mercantilist empire.  Whose colonies shipped raw materials to the mother country.  And the proceeds from those sales were used to buy manufactured goods made from those raw materials in the mother country.  Making the colonists dependent on Britain for their clothing.  The lack of which would make a very cold and miserable winter.  Which led a lot of people to agree with Reverend Samuel Seabury.  But not Hamilton.  For he looked out across the American colonies and saw something else.  Economic independence.  The South had cotton.  The North could raise sheep for wool.  And they could build factories in the cities to make cloth and clothing.  Staffed by skilled immigrants from European factories.  This is what Hamilton saw when he looked out across the vast North American continent.  Great economic opportunity.  Made possible by an American union.

Hamilton spent the Winter Seasons at Valley Forge and Morristown Reading and Studying Economics and Public Finance

When the Revolutionary War came Hamilton joined the Continental Army.  Fought bravely.  Then ended up as General Washington’s aide-de-camp.  Serving in Washington’s inner circle he knew what the commanding general knew.  And he knew the sorry state of the army.  Half-naked, hungry and unpaid.  While some civilians were living the life of Riley.  Making a fortune off of hording commodities and selling them at high prices.  Which they could do with impunity as the Continental Congress was powerless to stop them.  As it was at the mercy of the states.  The national congress was broke and had little legal authority.  Which let the speculators run roughshod over it.  Leaving the people sacrificing the most for independence half-naked, hungry and unpaid.  Diminishing the fighting ability of the army.  Which greatly increased the risk of defeat.

Hamilton learned an important lesson.  The stronger the national government was, and the richer it was, the easier it was to wage war.  And the easier it was NOT to be defeated in war.  The problem here was that the national government was too weak.  While the state governments were too strong.  Which was fine for the people living normal lives in their states.  But not the soldiers in the field fighting for the nation.  Making things worse was inflation.  The Continental Congress was printing money.  As were the states.  And the more they printed the more they depreciated it.  Which led to even higher prices.  More profits for the speculators.  And even more hardship for the army.  Which had to at times take things from the local people in exchange for IOUs.  Making these people hate the army.  And the army hate the people.  As they were the ones risking life and limb for what was to them an ungrateful people.

Hamilton spent the winter seasons at Valley Forge and Morristown reading and studying economics and public finance.  And set out to solve the inflation problem.  What he learned was that a lot of people were benefiting by the rampant inflation.  Debtors loved it.  For the greater the inflation was the easier it was to repay loans in those depreciated dollars.  Especially the farmers.  They sold their produce at ever higher prices.  Borrowed money to buy land (and repaid those loans in depreciated dollars).  While escaping much of the ravages of inflation themselves.  Because they were farmers.  And were self-sufficient.  Eating what they grew.  Even making their own clothes.  For some inflation was a way to get rich quick at the detriment of others.  To help dissuade such activity Hamilton suggested high taxes in kind (if a farm grew wheat that they turned into flour they would pay a portion of their flour to the government as a tax) on those benefitting from inflation who where destroying the confidence in the dollar.

If Hamilton were Alive Today he would likely Endorse the Republican Candidates Mitt Romney and Paul Ryan

Hamilton also suggested a plan for a national bank.  To help restore the credit of the United States.  And to provide a source of credit for the national government.  The bank would be owned half by the government and half by rich investors.  By letting the rich investors make money on the bank it would, of course, encourage them to invest in the bank.  And provide capital the government could borrow.  Hamilton believed in bringing the rich people closer to the government.  So the government had access to their money.  Both would win in such a partnership.  And both would have a vested interest in seeing the government succeed.  The Continental Congress used some of Hamilton’s ideas.  But not enough to bring his vision to life.  He would get another chance, though.  When he became America’s first Secretary of the Treasury.

At the end of the Revolutionary War the United State’s finances were in a mess.  State governments and the national government owed money.  As they used that money to prosecute the war Hamilton believed the national government should assume the states’ debts and roll in into the national debt.  And, more importantly, the new national debt would help strengthen the union.  By binding the states to the national government.  These actions also helped to restore the nation’s credit.  Allowing it to borrow money to repay old debts.  As well as finance new spending.  Hamilton also got his bank.  And he produced a report on manufacturers.  A plan to use government funds to help launch American industry.  So they could catch up to Great Britain.  And even surpass the former mother country.

Hamilton pushed for these things because he wanted to use the power of government to make America strong and fiercely independent in the world of nations.  With an economic plan that would make the nation wealthy.  And allowing it to afford a military that equaled or surpassed Great Britain.  He did not want to make America wealthy to implement a massive welfare state.  His idea of partnering government with business was to make an American Empire modeled on the British Empire.  Making it a rich military superpower.  Able to project force.  Maintaining peace through strength.  Much like the British did with their Pax Britannica that he didn’t live to see.  And to protect what it had from anyone trying to take it away from them.  So based on this who would he endorse in the 2012 election?  The party that had business-friendly policies to encourage economic growth.  The party that was more anti-inflation.  The party that would best exploit the nation’s resources.  And the party that favored a strong military.  Which is NOT the Democrat Party.  No, if Alexander Hamilton were alive today he would likely endorse the Republican candidates Mitt Romney and Paul Ryan.

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FT127: “Obamacare is a lot like the Smoot-Hawley Tariff in terms of scaring the bejesus out of businesses.” -Old Pithy

Posted by PITHOCRATES - July 20th, 2012

Fundamental Truth

The Roaring Twenties gave us Automobiles, Electric Power, Radio, Movies, Telephones and Air travel

In 1921 there were 9 million automobile registrations.  That jumped to 23 million by 1929.  An increase of 156%.  That’s a lot more cars on the roads.  In the Roaring Twenties we made cars out of steel, paint and glass.  Inside we fitted them with lumber, cotton and leather.  We put rubber tires on them.  And filled their fuel tanks with gasoline.  So this surge in car ownership created a surge in all of these industries.  Extraction of raw materials.  Factories and manufacturing plants to build the equipment to extract those raw materials.  As well as the machinery to build these automobile components.  And the moving assembly lines in assembly plants to assemble these automobiles.  The plants, warehouses and automobile dealers created a surge in the construction industry.  And all the industries that fed the construction industry.  Including the housing industry to house all these gainfully employed workers.

And this was just the auto industry.  Which wasn’t the only industry that was booming during the Roaring Twenties.  Thanks to the hands-off government policies of the administrations of Warren G. Harding and Calvin Coolidge businesses introduced us to the modern world.  Electric power came into its own.  By 1929 about 80% of all installed horsepower was electrical.  And it entered our homes.  Electric lighting and electric appliances.  Vacuum cleaners.  Washing machines.  Refrigerators.  All of this required even more raw material extraction from the ground.  More manufacturing equipment and plants.  More wholesale and retail construction.  And more housing to house all of these workers earning a healthy paycheck.

And there was more.  The Roaring Twenties gave us broadcast radio in our electric-powered homes.  Free entertainment, sports broadcasts and news.  Paid for by the new industry of advertising.  Competing with radio was another growing industry.  Motion pictures.  That by the end of the Roaring Twenties were talkies.  And speaking of talking there was a lot of that on the new telephone.  In our homes.  Interconnecting all of these industries was ship, rail and truck transportation.  Even air travel took off during the Twenties.  More raw material extraction.  More equipment.  More manufacturing.  More construction.  And jobs.  More and more jobs.  The hands-off government policies of the Harding and Coolidge administrations created the great Bull Market of the Twenties.  Explosive economic activity.  Real economic growth.  Creating low-cost consumer goods to modernize America.  Increase her productivity.  Making her the dominant economic power in the world.  The Europeans were so worried about America’s economic prowess that they met in 1927 at the International Economic Conference in Geneva to discuss the American problem.  And how they were going to compete with the American economic juggernaut.  Because the free market capitalism of the New World was leaving the Old World in the dust.

Herbert Hoover was a Republican in Name Only that FDR once Admired but Calvin Coolidge Despised

This was real economic growth.  It was not speculation.  This wasn’t artificially low interest rates creating an asset bubble.  Working Americans bought homes and cars.  And furnishings.  Businesses produced these to meet that demand.  They had growing sales.  And growing profits.  Which increased their stock prices.  Investors wanted to own their stocks because these companies were making money.  And with the world modernizing these stock prices weren’t going anywhere but up in the foreseeable future.  Unless something changed the business environment.  Well, something did.

Despite the roaring economy Calvin Coolidge did not run for a second term.  Which was a pity.  For his successor, Herbert Hoover, was a Republican in name only.  He was a big time progressive.  Who wanted to use the power of government to make the world perfect.  A devout believer in the benevolence of Big Government.  He added about 2,000 bureaucrats to the Department of Commerce.  FDR at one time admired him (before he ran against him for president).  Coolidge despised him.  Under Hoover the federal government intruded into the private sector.  His economics were Keynesian.  He, too, worshipped at the altar of demand.  He believed high wages were the key to prosperity.  For people with more money buy more.  And all that buying created demand for businesses to meet.  Even during a recession he believed wages should not fall.  Despite the fact that’s what recessions do on the back side of the business cycle.  Lower prices and wages.  And lay off people.

By the Twenties American farmers were mechanizing their farms.  Allowing them to grow more food than ever before.  Agriculture prices fell.  At first this wasn’t a problem as there were export markets for their bumper crops.  Thanks to a war-devastated Europe.  But eventually the European soldiers returned to the farm.  And the Europeans didn’t need the American food anymore.  Even places tariffs on U.S. imports to their countries to help their farmers get back on their feet.  Add in a bad winter that killed livestock.  Some bad insect infestation in the summer.  Add all this together and you had the beginning of the great farm crisis.  Debt defaults.  Bank failures.  And the contraction of the money supply.  Which the Federal Reserve (the Fed) did not step in to compensate for by expanding the money supply.  Which was sort of their purpose for being in existence.  As there was less money to borrow business could longer borrow to continue their growth.  Because of the time factor in the stages of production to expand production required borrowing money.  To make matters worse the Fed was actually pulling more money out of circulation.  Because they looked at the rising stock prices and concluded that speculators were borrowing money to invest in the stock market.  Thus inflating stock prices.  But it wasn’t speculators running up those prices.  It was an economic boom that was running up those stock prices.  Until the government put a stop to that, at least.

Bad Government Policy didn’t Create the Roaring Twenties but Bad Government Policy ended Them

The Smoot-Hawley Tariff was close to becoming law in the fall of 1929.  It was moving through committees on its way to becoming law.  This tariff would raise the tax on all imports by about 30%.  The idea was to protect domestic supplies and manufacturers.  But even in 1929 it was a global economy.  A lot of imports entered the stages of production.  Which meant costs would be increasing throughout the stages of productions.  Greatly increasing the input costs of all those businesses enjoying those high stock prices.  Which would raise their prices (to cover those higher input costs).  Reducing their sales.  And slashing their profits.  Add this to the contracting money supply and it painted a very bleak picture for business.

With demand sure to fall due to a massive new tariff that was about to become law businesses cut back.  To get rid of what was about to become excess capacity.  For they were smart.  And understood what affected their businesses.  And you know who else were smart?  Investors.  Who looked at this tariff and saw a locomotive engineer about to slam on the brakes.  And if Congress passed this into law after 1928 Coolidge wasn’t going to be there to veto the law.  So they all came to the same conclusions.  The bull market was coming to an end.  And they wanted to sell their stock to lock in their stock gains.  Which caused the great sell-off of 1929.  And the stock market crash.  Starting the Great Depression.

People still debate the cause of the Great Depression.  A popular argument is that greedy investors caused it by speculating in the stock market.  Or that greedy businesses out-produced demand.  But the economics of the Roaring Twenties don’t support this.  This wasn’t people buying big houses because interest rates were low.  This was the electrification of America.  Cars.  Telephones.  Radio.  Movies.  Air travel.  This was broad and real economic growth.  Bad government policy didn’t create it.  But bad government policy ended them.  And it was the expectations of even worse government policies that yanked the rug out from underneath the economy.  By causing a business contraction and stock market sell-off.  Much like Obamacare is doing to businesses today.  Scaring the bejesus out of them.  For they have no idea what their future costs will be under Obamacare.  So they are doing their best to prepare for it.  By not expanding their businesses.  By not hiring anyone.  And sitting on their cash.  To prepare for the worst.  Much like businesses did in 1928.  Which explains why the Great Recession lingers on.

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Flint Tools, Levers, Wheels, Animal Power, Water Power, Wind Power, Steam Power, Electrical Power, Nuclear Power and Solar Power

Posted by PITHOCRATES - February 22nd, 2012

Technology 101

Man harnessed the Energy in Moving Water with a Water Wheel

When prehistoric man first chipped a piece of flint to make a sharp edge he learned something.  It made work easier.  And his life better.  This tool concentrated his energy into that sharp edge.  Increasing the amount of energy he could put to work.  Allowing him to skin an animal quickly and efficiently like never before.  Making better hides to protect him from the elements.  Yes, he said, this tool is good.  But in a somewhat less sophisticated manner of speech.

From that moment forward it has been man’s singular desire to improve on this first tool.  To find ways to concentrate energy and put it to work.  Levers allowed him to move heavier things.  Wheels allowed him to move heavier loads.  The block and tackle allowed him to lift or pull heavier weights.  Harnessing animals allowed him to do all of these things even better.  And we would use animal power for millennia.  Even today they still provide the primary source of power for some less developed countries.

But animals have their limitations.  They’re big, they eat, drink, pee and poop.  Which doesn’t make them an ideal source of power to turn a mill wheel.  A big wheel that grinds grain into flour.  It’s heavy.  But it doesn’t have to spin fast.  Just for long periods of time.  Then man had another moment like he did when he chipped a piece of flint.  He noticed in his environment that things moved.  The wind.  And the water in a river.  The wind could blow fast or slow.  Or not at all.  But the water flow was steady.  And reliable.  So man harnessed the energy in the moving water with a water wheel.  And connected it to his mill wheel via some belts and pulleys.  And where there was no water available he harnessed the less reliable wind.

The Steam Engine eliminated the Major Drawbacks of Water Power and Wind Power 

The water flowed day and night.  You didn’t have to feed it or clean up after it.  And a strong current had a lot of concentrated energy.  Which could do a lot of work.  Far more than a sharpened piece of flint.  Which was ideal for our first factories.  The water wheel shaft became a main drive shaft that drove other machines via belts and pulleys.  The main drive shaft ran the length of the factory.  Workers could operate machinery underneath it by engaging it to the main drive shaft through a belt and pulley.  Take a trip to the past and visit a working apple mill powered by a water wheel.  It’s fascinating.  And you’ll be able to enjoy some fresh donuts and hot cider.  During the harvest, of course.

While we built factories along rivers we used that other less reliable source of energy to cross oceans.  Wind power.  It wasn’t very reliable.  And it wasn’t very concentrated.  But it was the only way you could cross an ocean.  Which made it the best way to cross an ocean.  Sailors used everything on a sailing ship from the deck up to catch the wind and put it to work.  Masts, rigging and sails.  Which were costly.  Required a large crew.  And took up a lot of space and added a lot of weight.  Space and weight that displaced revenue-earning cargo.

The steam engine eliminated the major drawbacks of water power and wind power.  By replacing the water wheel with a steam engine we could build factories anywhere.  Not just on rivers.  And the steam engine let ships cross the oceans whenever they wanted to.  Even when the wind didn’t blow.  And more space was available for revenue-earning cargo.  When these ships reached land we transferred their cargoes to trains.  Pulled by steam locomotives.  That could carry this revenue-earning cargo across continents.   This was a huge step forward.  Boiling water by burning coal to make steam.  A highly concentrated energy source.  A little of it went a long way.  And did more work for us than ever.  Far more than a water wheel.  It increased the amount of work we could do so much that it kicked off the Industrial Revolution.

With Nuclear Power our Quest to find more Concentrated Forms of Energy came to an End 

We replaced coal with oil in our ships and locomotives.  Because it was easier to transport.  Store.  And didn’t need people to shovel it into a boiler.  Oil burners were more efficient.  We even used it to generate a new source of power.  Electrical power.  We used it to boil water at electrical generating plants to spin turbines that turned electrical generators.  We could run pipelines to feed these plants.  Making the electricity they generated even more efficient.  And reliable.  Soon diesel engines replaced the oil burners in ships and trains.  Allowed trucks and buses to run where the trains didn’t.  And gasoline allowed people to go anywhere the trains and buses didn’t go.

The modern economy ran on petroleum.  And electricity.  We even returned to the water wheel to generate electricity.  By building dams to build huge reservoirs of water at elevations.  Creating huge headwater forces.  Concentrating more energy in water.  Which we funneled down to the lower elevation.  Making it flow through high-speed water turbines connected to electrical generators.  That spun far faster than their water wheel ancestors.  Producing huge amounts of reliable electrical power.  We even came up with a more reliable means to create electrical power.  With an even more concentrated fuel.  Fissile material gave us nuclear power.  During the oil shocks of the Seventies the Japanese made a policy change to expand their use of nuclear power.  To insulate them from future oil supply shocks.  Which it did.  While in America the movie The China Syndrome came out around the time of the incident at Three Mile Island.  And killed nuclear power in America.  (But as a consolation prize we disproved the idea of Keynesian stimulus.  When the government created massive inflation with Keynesian policy.  Printing money.  Which raised prices without providing any new economic activity.  Causing instead high inflation and high unemployment.  What we call stagflation.  The Japanese got a big Keynesian lesson about a decade later.  When their massive asset bubble began to deflate giving them their Lost Decade.)

And with nuclear power that quest to find more ways to make better and more efficient use of concentrated energy from that first day we used a flint tool came to an end.  Global warming alarmists are killing sensible sources of energy that have given us the modern world.  Even animal rights activists are fighting against one of the cleanest sources of power we’ve ever used.  Water power.  Because damming rivers harms ecosystems in the rivers we dam.  Instead political pressures have turned the hands of time backwards by using less concentrated and less efficient sources of energy.  Wind power.  And solar power.  Requiring far greater infrastructure installations to capture far less amounts of energy from these sources.  Power plants using wind power and solar power will require acres of land for windmills and solar panels.  And it will take many of these power plants to produce what a single power plant using coal, oil, natural gas or fissile material can generate.  Making power more costly than it ever has been.  Despite wind and sunshine being free.  And when the great civilizations become bankrupt chasing bankrupt energy policies we will return to a simpler world.  A world where we don’t make and use power.  Or machinery.  Much like our flint-tool using ancestors.  Albeit with a more sophisticated way of expressing ourselves.

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FDR, Wage Ceiling, Arsenal of Democracy, Benefits, Big Three, Japanese Competition, Legacy Costs, Business Cycle and Bailouts

Posted by PITHOCRATES - February 14th, 2012

History 101

After the Arsenal of Democracy defeated Hitler the Wage Ceiling was Gone but Generous Benefits were here to Stay

FDR caused the automotive industry crisis of 2008-2010.  With his progressive/liberal New Deal policies.  He placed a ceiling on employee wages during the Great Depression.  The idea was to keep workers’ wages low so employers would hire more workers.  It didn’t work.  And there was an unintended consequence.  As there always is when government interferes with market forces.  The wage ceiling prevented employers from attracting the best workers by offering higher wages.  Forcing employers to think of other ways to attract the best workers.  And they found it.  Benefits.

Adolf Hitler ended the Great Depression.  His bloodlust cut the chains on American industry as they tooled up to defeat him.  The Arsenal of Democracy.  America’s factories hummed 24/7 making tanks, trucks, ships, airplanes, artillery, ammunition, etc.  The Americans out-produced the Axis.  Giving the Allies marching towards Germany everything they needed to wage modern war.  While in the end the Nazis were using horses for transport power.  This wartime production created so many jobs that they even hired women to work in their factories.  Bringing an end to the Great Depression finally after 12 years of FDR.

The Arsenal of Democracy defeated Hitler.  U.S. servicemen came home.  And the women left the factories and returned home to raise families.  With much of the world’s factories in ruins the U.S. economy continued to hum.  Only they were now making things other than the implements of war.  The auto makers returned to making cars and trucks.  The ceiling on wages was gone.  But those benefits were still there.  Greatly increasing labor costs.  But what did they care?  The American auto manufacturers had a captive audience.  If anyone wanted to buy a car or truck there was only one place to buy it.  From them.  No matter the cost.  So they just passed on those high wages and expensive benefit packages on to the consumer.  Times were good.  The Fifties were happy times.  Good jobs.  Good pay.  Free benefits.  Nice life in the suburbs.  All paid for by expensive vehicle prices.

The Big Three could not Sell Cars when there was Competition because of their Legacy Costs

But it wouldn’t last.  Because it couldn’t last.  For those factories destroyed in the war were up and running again.  And someone noticed those high prices on American cars.  The Japanese.  Who rebuilt their factories.  Which were now humming, too.  And they thought why not enter the automotive industry?  And this changed the business model for the Big Three (GM, Ford and Chrysler) as they knew it.  The Big Three had competition for the first time.  Their captive audience was gone.  For the consumer had a choice.  They could demand better value for their money.  And chose not to buy the ‘rust buckets’ they were selling in the Seventies.  Cars that rusted away after a few snowy winters.  Or a few years near the ocean coast.

The new Japanese competition started about 30 years after U.S. workers began to enjoy all those benefits.  So the U.S. car companies paid their union auto workers more and gave them far more benefits than their Japanese competition.  And those early U.S. workers were now retiring.  Giving a great advantage to the Japanese.  Because those generous benefits provided those U.S. retirees very comfortable pensions.  And all the health care they could use.  All paid for by the Big Three.  Via the price of their cars and trucks.

Well, you can see where this led to.  The Big Three could not sell cars when there was competition.  Because of these legacy costs.  Higher union wages.  Generous pension and health care benefits that workers and retirees did not contribute to.  (By the time GM and Chrysler faced bankruptcy in 2010 there were more retirees than active union workers).  The United Automobile Workers (UAW) jobs bank program where unemployed workers (laid off due to declining sales) collected 95% of their pay and benefits.  (You can find many quotes on line from a Detroit News article stating some 12,000 UAW workers were collecting pay and benefits in 2005 but not working.)  The Japanese had none of these costs.  And could easily build a higher quality vehicle for less.  Which they did.  And consumers bought them.  The Big Three conceded car sales to the Japanese (and the Europeans and South Koreans) and focused on the profitable SUV and truck markets.  To pay these high legacy costs.  Until the gas prices soared to $4/gallon.  And then the Subprime Mortgage Crises kicked off the Great Recession.  Leading to the ‘bankruptcy’ of GM and Chrysler.  And their government bailouts.

The U.S. Automotive Government Bailout cut Wage and Benefits once Set in Stone

The Big Three struggled because they operated outside normal market forces.  Thanks at first to a captive audience.  Then later to friends in government (tariffs on imports, import quotas, union-favorable legislation, etc.).  All of this just delayed the day of reckoning, though.  And making it ever more painful when it came.

During economic downturns (when supply and prices fall) their cost structure did not change.  As it should have.  Because that’s what the business cycle does.  It resets prices and supply to match demand.  With recessions.  Painful but necessary.  Just how painful depends on how fast ‘sticky’ wages can adjust down to new market levels.  And herein lies the problem that plagued the Big Three.  Their wages weren’t sticky.  They were set in stone.  So when the market set the new prices for cars and trucks it was below the cost of the Big Three.  Unable to decrease their labor (wage and benefit) costs, profits turned into losses.  Pension funds went underfunded.  And cash stockpiles disappeared.  Leading the Big Three to the brink of bankruptcy.  And begging for a government bailout.

Well, the bailout came.  The government stepped in.  Gave the union pension fund majority control of the bailed out companies.  Screwing the bondholders (and contract law) in the process.  And created a two-tier labor structure.  They grandfathered older employees at the unsustainable wage and benefit packages.  And hired new employees at wage and benefit packages that the market would bear.  Comparable to their Asian and European transplant auto plants in the right-to-work states in the southern U.S. states.  And put the market back in control of the U.S. auto industry.  For awhile, at least.

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The Horse, Waterwheel, Steam Engine, Electricity, DC and AC Power, Power Transmission and Electric Motors

Posted by PITHOCRATES - December 21st, 2011

Technology 101

A Waterwheel, Shaft, Pulleys and Belts made Power Transmission Complex

The history of man is the story of man controlling and shaping our environment.  Prehistoric man did little to change his environment.  But he started the process.  By making tools for the first time.  Over time we made better tools.  Taking us into the Bronze Age.  Where we did greater things.  The Sumerians and the Egyptians led their civilization in mass farming.  Created some of the first food surpluses in history.  In time came the Iron Age.  Better tools.  And better plows.  Fewer people could do more.  Especially when we attached an iron plow to one horsepower.  Or better yet, when horses were teamed together to produce 2 horsepower.  3 horsepower.  Even 4 horsepower.  The more power man harnessed the more work he was able to do.

This was the key to controlling and shaping our environment.  Converting energy into power.  A horse’s physiology can produce energy.  By feeding, watering and resting a horse we can convert that energy into power.  And with that power we can do greater work than we can do with our own physiology.  Working with horse-power has been the standard for millennia.  Especially for motive power.  Moving things.  Like dragging a plow.  But man has harnessed other energy.  Such as moving water.  Using a waterwheel.  Go into an old working cider mill in the fall and you’ll see how man made power from water by turning a wheel and a series of belts and pulleys.  The waterwheel turned a main shaft that ran the length of the work area.  On the shaft were pulleys.  Around these pulleys were belts that could be engaged to transfer power to a work station.  Where it would turn another pulley attached to a shaft.  Depending on the nature of the work task the rotational motion of the main shaft could be increased or decreased with gears.  We could change it from rotational to reciprocating motion.  We could even change the axis of rotation with another type of gearing.

This was a great step forward in advancing civilization.  But the waterwheel, shaft, pulleys and belts made power transmission complex.  And somewhat limited by the energy available in the moving water.  A great step forward was the steam engine.  A large external combustion engine.  Where an external firebox heated water to steam.  And then that steam pushed a piston in a cylinder.  The energy in expanding steam was far greater than in moving water.  It produced far more power.  And could do far more work.  We could do so much work with the steam engine that it kicked off the Industrial Revolution.

Nikola Tesla created an Electrical Revolution using AC Power

The steam engine also gave us more freedom.  We could now build a factory anywhere we wanted to.  And did.  We could do something else with it, too.  We could put it on tracks.  And use it to pull heavy loads across the country.  The steam locomotive interconnected the factories to the raw materials they consumed.  And to the cities that bought their finished goods.  At a rate no amount of teamed horses could equal.  Yes, the iron horse ended man’s special relationship with the horse.  Even on the farm.  Where steam engines powered our first tractors.  Giving man the ability to do more work than ever.  And grow more food than ever.  Creating greater food surpluses than the Sumerians and Egyptians could ever grow.  No matter how much of their fertile river banks they cultivated.  Or how much land they irrigated.

Steam engines were incredibly powerful.  But they were big.  And very complex.  They were ideal for the farm and the factory.  The steam locomotive and the steamship.  But one thing they were not good at was transmitting power over distances.  A limitation the waterwheel shared.  To transmit power from a steam engine required a complicated series of belts and pulleys.  Or multiple steam engines.  A great advance in technology changed all that.  Something Benjamin Franklin experimented with.  Something Thomas Edison did, too.  Even gave us one of the greatest inventions of all time that used this new technology.  The light bulb.  Powered by, of course, electricity.

Electricity.  That thing we can’t see, touch or smell.  And it moves mysteriously through wires and does work.  Edison did much to advance this technology.  Created electrical generators.  And lit our cities with his electric light bulb.  Electrical power lines crisscrossed our early cities.  And there were a lot of them.  Far more than we see today.  Why?  Because Edison’s power was direct current.  DC.  Which had some serious drawbacks when it came to power transmission.  For one it didn’t travel very far before losing much of its power. So electrical loads couldn’t be far from a generator.  And you needed a generator for each voltage you used.  That adds up to a lot of generators.  Great if you’re in the business of selling electrical generators.  Which Edison was.  But it made DC power costly.  And complex.  Which explained that maze of power lines crisscrossing our cities.  A set of wires for each voltage.  Something you didn’t need with alternating current.  AC.  And a young engineer working for George Westinghouse was about to give Thomas Edison a run for his money.  By creating an electrical revolution using that AC power.  And that’s just what Nikola Tesla did.

Transformers Stepped-up Voltages for Power Transmission and Stepped-down Voltages for Electrical Motors

An alternating current went back and forth through a wire.  It did not have to return to the electrical generator after leaving it.  Unlike a direct current ultimately had to.  Think of a reciprocating engine.  Like on a steam locomotive.  This back and forth motion doesn’t do anything but go back and forth.  Not very useful on a train.  But when we convert it to rotational motion, why, that’s a whole other story.  Because rotational motion on a train is very useful.  Just as AC current in transmission lines turned out to be very useful.

There are two electrical formulas that explain a lot of these developments.  First, electrical power (P) is equal to the voltage (V) multiplied by the current (I).  Expressed mathematically, P = V x I.  Second, current (I) is equal to the voltage (V) divided by the electrical resistance (R).  Mathematically, I = V/R.  That’s the math.  Here it is in words.  The greater the voltage and current the greater the power.  And the more work you can do.  However, we transmit current on copper wires.  And copper is expensive.  So to increase current we need to lower the resistance of that expensive copper wire.  But there’s only one way to do that.  By using very thick and expensive wires.  See where we’re going here?  Increasing current is a costly way to increase power.  Because of all that copper.  It’s just not economical.  So what about increasing voltage instead?  Turns out that’s very economical.  Because you can transmit great power with small currents if you step up the voltage.  And Nikola Tesla’s AC power allowed just that.  By using transformers.  Which, unfortunately for Edison, don’t work with DC power.

This is why Nikola Tesla’s AC power put Thomas Edison’s DC power out of business.  By stepping up voltages a power plant could send power long distances.  And then that high voltage could be stepped down to a variety of voltages and connected to factories (and homes).  Electric power could do one more very important thing.  It could power new electric motors.  And convert this AC power into rotational motion.  These electric motors came in all different sizes and voltages to suit the task at hand.  So instead of a waterwheel or a steam engine driving a main shaft through a factory we simply connected factories to the electric grid.  Then they used step-down transformers within the factory where needed for the various work tasks.  Connecting to electric motors on a variety of machines.  Where a worker could turn them on or off with the flick of a switch.  Without endangering him or herself by engaging or disengaging belts from a main drive shaft.  Instead the worker could spend all of his or her time on the task at hand.  Increasing productivity like never before.

Free Market Capitalism gave us Electric Power, the Electric Motor and the Roaring Twenties

What electric power and the electric motor did was reduce the size and complexity of energy conversion to useable power.  Steam engines were massive, complex and dangerous.  Exploding boilers killed many a worker.  And innocent bystander.  Electric power was simpler and safer to use.  And it was more efficient.  Horses were stronger than man.  But increasing horsepower required a lot of big horses that we also had to feed and care for.  Electric motors are smaller and don’t need to be fed.  Or be cleaned up after, for that matter.

Today a 40 pound electric motor can do the work of one 1,500 pound draft horse.  Electric power and the electric motor allow us to do work no amount of teamed horses can do.  And it’s safer and simpler than using a steam engine.  Which is why the Roaring Twenties roared.  It was in the 1920s that this technology began to power American industry.  Giving us the power to control and shape our environment like never before.  Vaulting America to the number one economic power of the world.  Thanks to free market capitalism.  And a few great minds along the way.

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Aristocracy, the Old World, the New World and the American Civil War

Posted by PITHOCRATES - December 6th, 2011

History 101

General Robert E. Lee represented the Old World, General Ulysses S. Grant represented the New World

General Robert E. Lee represented the Old World.  The last of a long line of wealthy landowners.  The finest of inherited wealth.  With a lineage that went back to George Washington.  The Father of our Country.  On his wife’s side.  Through the Custis ancestry.  Lee fought to continue the old ways.  Magnificent landholdings.  Grand mansions.  Servants.  Balls.  Gentlemen.  And ladies.  None who worked.  But who enjoyed the very best of lives.  Because of a very good last name.  And Lee wanted to pass this life on to his heirs.

General Ulysses S. Grant represented the New World.  His father was middle class.  A tanner.  And Grant worked in his father’s shop.  But hated the blood.  And the horrific odors.  He left and went to West Point.  Saw combat in the Mexican War.  After the war he served in some lonely posts.  Away from his family.  And started to drink.  He missed his family so much that he eventually left the Army.  Tried and failed in some business ventures.  And ended up a clerk back at his father’s tannery.  Working for his younger brother.  To support his family.

Grant and Lee actually met once in the Mexican War.  When Lee visited Grant’s unit.  Lee remembered the visit.  But he didn’t remember Grant.  For Grant was a rather plain soldier.  When war came between the states the North offered Lee command of all Union forces.  But Lee could not draw his sword against Virginia.  His beloved country/state.  So he resigned his commission and joined the Confederate Army.  Grant raised a regiment so he could rejoin the army.  Lee won many victories against the Army of the Potomac.  Grant advanced Union forces to a series of victories in the West.  His successes earned him command of all Union forces.  And he travelled east.  To ride with General George Meade and the Army of the Potomac.  As it pursued General Lee’s Army of the Northern Virginia.

The Planter Elite had Poor White Southerners who did not Own Any Slaves Fight to Maintain the Institution of Slavery

Until Grant took over Lee had many successes besting the Army of the Potomac.  In Virginia it became routine.  After the Union suffered yet another defeat the Army would turn and head back north.  Not so with Grant.  When he came to that fork in the road, he turned south.  To try and outflank Lee.  And face him in battle again.  And again.  Until Appomattox Courthouse.  Where Lee found himself outmanned.  And surrounded.  Lee and Grant met to discuss terms of surrender.  Lee arrived first.  Expecting to be taken prisoner and possibly hung for treason, he arrived resplendent in his finest uniform.  Grant arrived later.  Muddied.  And wearing a private’s jacket.

Grant offered very generous terms.  Which had a very positive effect on Lee.  And his men.  There would be an end to the war.  And there would be no guerilla war.  Instead, Lee would do everything within his power to help bring the South back into the Union.  With Lee being more important than the president of the Confederacy, this mattered.  The people respected Lee.  And if he said the war was over the war was over.  It was time to be good citizens of the United States again.

The South fought valiantly.  For what turned out to be a dying cause.  Old World aristocracy.  Based on the institution of slavery.  Which is why the cause failed.  But before we get to that consider who fought for the confederates.  Like in the Old World, the majority of the people in the South were those who worked the land.  Black slaves.  Unlike feudalism, though, these black slaves did not fill the ranks of the armies led by their landowners.  So those responsible for war, the Planter Elite, did not risk their ‘property’ during the war.  Instead, they had poor white southerners who did not own any slaves fight to maintain the institution of slavery.  Who they lied to.  By saying the war was about states’ rights.  Or that it was to repel the Northern aggressors who wanted to change the Southern way of life.  But that’s not why the Planter Elite seceded from the Union.  It was to maintain their way of life.  An Old World-style of aristocracy.  Perhaps the greatest lie in all U.S. history.  Considering the Planter Elite killed some 618,000 trying to maintain that way of life.  Which was 2% of the total population.  Today 2% of our approximate 312 million population would be 6.2 million dead.  Just to give you an idea of how big killing 2% of your population is.

The American Civil War was the Final Battle between the Old World and the New World in the United States

So why did the South lose?  Because the world changed.  There was now a middle class.  Creating and innovating.  Expanding the Industrial Revolution to the New World.  In the northern states.  Where factories hummed with efficiency.  And produced a modern economy.  Whereas the South stayed primarily an agricultural economy.  Based on King Cotton.  With the majority of their population being slaves working in the fields.

The northern population swelled as immigrants filled their factories.  Railroads crisscrossed the North.  Steam-powered ships plied the rivers and coastal waters.  There was economic activity everywhere.  And free laborers earning wages everywhere.  And spending their wages.  Taking part in economic exchanges.  The North became advanced.  Efficient.  And wealthy.  Whereas the only wealth in the South was on the plantations.  Confined to the landed aristocracy.  And King Cotton.  When war broke out there was no way that the economic powerhouse that was the North would not prevail.  Especially when their factories could make rifles and cannon.  And ships to bottle up Southern harbors.  Making all that cotton in the South worthless.  And irrelevant.  As the British just turned to India to feed their textile industry.

The American Civil War was the final battle between the New World and the Old World in the United States.  Between the middle class of Ulysses S. Grant and the aristocracy of Robert E. Lee.  Between free market capitalism and the landed aristocracy.  And capitalism won.  Because it was the better system.  To produce wealth.  And to improve the quality of life.  For those free laborers who participated.   Allowing anyone to have a  better life.  Unlike the peasants, serfs and slaves of the Old World.

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