The former chief economist at Tullett Prebon, whose theories have also earned him the nickname “Dr Doom”, has published a book called Life After Growth that certainly lives up to his nicknames.
In a nutshell, Morgan believes that as energy becomes more expensive to extract the western world will have to spend more to meet its energy needs and less on everything else.
Whereas 10 years ago we were spending three to four per cent of our global gross domestic product on energy, this will rise to over 12 per cent by 2020 and so on.
“Anything that is energy intensive is going to rise much faster than income. I am looking at a 50 per cent increase over and above inflation in the next eight years,” he told The Capitalist.
Anyone who is not terrified yet should pick up his book.