Is Peak Oil theory correct?

As has been previously mentioned, "peak oil" is just a theory. There people who believe it to be false. Read this New York Times opinion piece by Michael Lynch and answer the following question:

• What are the main arguments that Lynch uses to discredit proponents of peak oil?

Then read this article by Nate Hagens over at The Oil Drum which rebuts the Lynch article.

• According to Hagens, how is Lynch mistaken? What proof does Hagens offer that peak oil is real?
• Who do you think is more convincing? Explain.
  

Critical Reading of Economics Polemic

Many politicians and media commentators use economics arguments to justify their own point of view. Yet many of them do not have a clear understanding of economic principles. If you have a sound understanding of economics you will be able to critically analyse and pull apart faulty arguments.

For this session, you will need to read the article"The Oil War-driven Recession We Had To Have by commentator Bob Ellis. Remember this article is an opinion piece and uses polemical arguments. There may be serious flaws in his reasoning.

Consider the following questions:
1. What is causing inflation (according to the author)?
2. Why is oil so expensive according to the author?
3. Why do you think oil is becoming so expensive?
4. Ellis suggests that the Reserve Bank of Australia should follow the lead of the US Federal Reserve by slashing interest rates. Do you agree? Why (or why not)? How is the situation in Australia different from the United States?
5. What's wrong with the statement, "You don't fight inflation by putting prices up. You fight it by bringing prices down. Start with interest rates and see how you go. How hard is it to get your brain around this?"

Discuss these questions in small groups and amongst the class.