Monday, March 19, 2012

Book Summary: Abundance - The Future Is Better Than You Think - By Peter Dimandis and Steven Kotler


Abraham Maslow defined the basic human hierarchy of needs as food, water and air and from there you move up to the top of the pyramid which is self-actualization. Image a world of clean abundant energy, clean abundant water, wellness instead of sick care, abundant food supply and medical treatment for all. Now imagine these things as self-sustaining systems and not charity.
Why is this important to me?
The major problems today are clean energy, clean water, health care, the environment and population growth which is why this book is important. Every year 11 million children around the world die from infectious diseases and other causes. Most of these could have been avoided with clean water. This statistic is horrible. The U.S. has spent over $1 Trillion dollars on wars to fight terrorism. The world water problem could have been solved for much less. People need to have a realistic perspective. Humans tend to think logically and linearly. Technological change happens exponentially. This is good news for us because all of these problems are solvable.

Abundance is an excellent book that not only defines the problems but highlights technology innovation that is happening right now that will solve these problems. This book is broken down into six major parts but for the sake of time, I will profile a few key points as well as focus on the What, Why and How.
1. The Facts - Fact One: Currently humanity uses 30% more of our planet's natural resources than we can replace. Fact Two: If everyone on this planet wanted to live with the lifestyle of the average European, we would need three planets' worth of resources to pull it off. Fact Three: If everyone on this planet wished to live like an average North American, then we'd need five planets to pull it off. Abundance shows that we can solve these problems. When seen through the lens of technology, few resources are truly scarce; they're mainly inaccessible. Yet the threat of scarcity still dominates the world view. The reason for this is because humans think logically and linearly while technological progression is exponential.
2. The Goal - Imagine a world of 9 billion people with clean water, nutritious food, affordable housing, personalized education, top-tier medical care, and nonpolluting, ubiquitous energy. Building this better world is humanity's grandest challenge.
Let's look at the how portion with examples from Abundance.
1. Energy Possibilities - Energy has many components that need work. One is the production of clean energy, two is the transmission of that energy and three is the storage of the energy. What this means is that solar energy produced in San Diego (95% sunny days) could be stored and transmitted to rainy areas like Seattle. Smart grid technologies are needed as well. We are making progress. Corn produces 18 gallons per acre per year and palm oil about 625 gallons per acre per year. Modified algae (pond scum) will produce 10,000 gallons per acre per year. The technical progress with modified algae is moving fast. If this goal is hit and Miles per gallon improve with the cars then we could eliminate our dependence on foreign oil with 17% of the land mass of Nevada producing modified algae. Clean abundant energy is the source of fixing the rest of the problems outlined in this summary. These tasks create jobs which fuels economic growth. This is not a charitable problem. Charities may invest money but that is the way it needs to be looked at - as an investment not a gift.
2. Water Possibilities - Dean Kamen created Slingshot. This is a water purification system that runs with a sterling engine. This setup is so effective that it costs.002 cents per liter. The system running in India can run on cow dung to power the purifier. Today the cost per liter is.30 cents. Building the Slingshot commercially could reduce the price down to $2,500 each. The water problem is a big problem because 97% of the world's water is salt water. Basically fresh water consists of less than 1% of the total water supply. Another huge issue is 70% of the world's water is used in agriculture while 50% of the food is thrown away. There are enormous opportunities in clean water generation locally eliminating the need to transport it. Smart Grid technologies are in huge demand because it makes sense to simply use what is needed without the delivery waste.
Abundance is a great book that will get you thinking about solving these major problems we face as a species. Right now the world economy is sputtering and on the brink of a major shift. The ultimate goal of most humans is to have a job to sustain and better their lives. Jim Clifton wrote about this in his book the Coming Jobs War. These technologies and problems offer opportunities and business growth for people who have the foresight to take advantage of it.
I hope you have found this short summary useful. The key to any new idea is to work it into your daily routine until it becomes habit. Habits form in as little as 21 days. One thing you can take away from this book is problems equal opportunity through the right lens. Viewing the world through the right lens is critical to our success. To hone this skill, focus on root cause problems and looking for solutions.
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