EconomicReason

The Swiss just found out that there is an “electric power gap” looming after 2012. On the one hand, electric power demand is expected to grow further, while on the other hand, electric power supply is expected to drop sharply due to the Swiss nuclear power stations reaching their age limit and long-term supply agreements with France running out.

A gap must obviously be closed, otherwise it wouldn’t be called a gap. It is suggested to close that gap by building either new nuclear power plants or new gas fired power plants. Both alternatives would obviously benefit the Swiss energy industry, which has brought up the notion of the “gap” recently and is orchestrating the public discussion.

Actually, the situation is even worse than that. Switzerland does not only face a power gap, it is already now suffering from serious shortages in domestic oil, gas and coal production; furthermore, it has a huge banana gap, an enormous coffee gap and a chronic peanut gap. Apart from that, it also faces serious production deficits in SUVs and iPods.

Miraculously, there is no shortage of oil, nor gas, nor coal in Switzerland; bananas, coffee and peanuts are plentiful, the roads are crowded with black shiny SUVs and iPods are very popular among young people. Shouldn’t Switzerland drill for gas and oil, grow bananas, coffee and peanuts locally, and subsidize the domestic production of SUVs and iPods, to close these gaps and ensure an uninterrupted supply of all these essential items?

The secret of prosperity is the division of labour: everyone produces what he or she can best. If Switzerland wants to build new power plants, or grow its own peanuts and bananas, Switzerland is of course free to do so. However, it will not enhance Swiss prosperity. The power gap is certainly not a problem for Switzerland’s well-being. However, the discussion about that power gap reveals some worrisome indications of an underlying brain gap that could seriously harm Swiss prosperity going forward.