Are We Running Out of Resources?

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Prof. Steve Horwitz addresses the common belief that the world is running out of natural resources. Instead, there are economic reasons why we will never run out of many resources. In a free market system, prices signal scarcity. So as a resource becomes more scarce, it becomes more expensive, which incentivizes people to use less of it and develop new alternatives, or to find new reserves of that resource that were previously unknown or unprofitable. We have seen throughout history that the human mind's ability to innovate, coupled with a free market economic system, is an unlimited resource that can overcome the limitations we perceive with natural resources.

Category:

Education

Tags:

• natural resources
• oil
• peak oil
• ultimate resource
• prices
• knowledge
• incentives
• copper
• fiber-optic
• economics
• conservation
• scarcity
• resources
• innovation
• learn
• liberty
• video
• freedom
• myth
• learn liberty

[Stolkmen]

I can agree with what you are saying, but new places to get resources are expensive not only in cost of money but cost of living. Frakking is a main concern because it could destroy the water we drink and use everyday. If it continues the water will be contaminated. So, in fact, if we want to keep our Earth in tact, oil should run out and we should find a new solution to the oil. Solar and Wind power seems promising as well as other pursuits.

[Chronosaur]

@sniperontheroof123 Solar? Coal? What's that got to do with what I said?

This guy's clearly got a job to do, and that job is to persuade you to think in a certain way, using dodgy arguments.

[nhl555]

Well as the world population continues to increase, there is a limit to the total resources. While Dr. Horwitz is correct in that substitutes and the market are powerful tools, the fact of the matter is the the Earth contains a finite quantity of resources. This is not a massive problem now, but if China an other countries with massive populations continue to further industrialize, I think you might find a bigger problem just over the horizon.

[sniperontheroof123]

@Dutchguy74 They attack large stores for using eminent domain, and attack chain stores for playing state governments off of each other for favorable tax treatment.

[sniperontheroof123]

@Chronosaur Huh? Actual evidence that solar is cheaper than coal? I'm all in favor of dropping subsidies (to both) and then just seeing what happens.

[Dutchguy74]

Amazing how these economist that are put on by theses "liberty channels: always have something to say that legitimizes big corporations especially the most profitable ones, like energy and military industry, no matter what the topic, climate change, foreign policy, economics, natural resources, social policy, the environment, you name it,these folks will always have a story that is apologetic for big business. "

[Chronosaur]

@sniperontheroof123 ...both of which are lazy attempts to avoid looking at the actual evidence, no?

[crazypants88]

@creig2kd I have no problem with seeking alternative energy sources.

I just have a problem with people asserting we're running out resources when we're not.

[sniperontheroof123]

@creig2kd And if you draw an analogy with the copper prices example you'd see that solar energy/renewables can become dominant simply through market forces, when burning oil simply doesn't make economic sense anymore because the price of oil is too high.

[sniperontheroof123]

@Chronosaur It's just the flipside of the claim "we were wrong in the past, but let's ignore that because this time it's different!"