Tuesday, 8 March 2011

We are not running out of oil or other energy resources

We have been reading about peak oil for decades now - and new scare stories -like this one - are published almost daily.  But should we believe these scaremongers, who often also happent o be believers in the man-made global warming religion? Of course not. There is no need to believe that we are running out of natural resources any time soon:

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.

Professor Horwitz´s home page.

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