Postdoctoral

Atlas likes to poke fun at the Federal Reserve from time to time because it employs so many PhDs yet doesn’t have complete mastery over how the economy behaves.  One only needs to think about the “transitory” period of inflation as an example of their limited power.  You may recall that Jerome Powell, Chair of the Federal Open Market Committee, used the term for months, all while inflation’s rate of change kept moving higher before peaking in June 2022.

While we’re on the topic of PhDs, let’s look at a couple more thanks to copper.  This element plays a pivotal role in electrical wiring worldwide due to its excellent balance of conductivity, cost relative to other metals like gold and silver, and physical properties like flexibility and resistance to corrosion.  The moniker "Dr. Copper" is used often in economic contexts to refer to copper's ability to predict global economic trends, owing to its widespread use in various industries.  As economies expand and contract, so does the demand for copper, making its price a relatively reliable indicator of economic health.  It could now be on its way to earning another doctorate, one in the environmental sciences.

There is an ongoing effort to decarbonize the globe.  While the knock-on effects of such an endeavor are worth considering and debating, they remain beyond the scope of this note.  Copper is now being used in parts of the energy infrastructure which were not as prevalent just a decade or two ago.  Take solar panels, wind turbines, and electric vehicles; they are all thought to be integral to reducing carbon emissions and use a lot of copper.  As the world moves toward cleaner energy sources, copper will play a vital role.  And if nuclear power mounts a comeback in the U.S., it is certain to be found there as well.

Copper is no longer just a building block of traditional infrastructure, but it is likely to play an even larger role in the everchanging future of energy.  It should continue to reflect the health of the economy, but its postdoctoral work could be what it is most known for by future generations.