Are we running out of resources?

Are we running out of resources?  This question was asked on the Linkedin forum “The Economnic Outlook”.  Following is my answer.

Your asking this question indicates there may be a problem.

Probably we are not running out of resources but it could well be that we have used up a lot of the easily available resources which could be just as serious.  We are already seeing rising prices and lower standards of living for many people.

The using up of easily accessible resources is complicated by the fact that price is equal to the marginal cost of producing the last unit.  This  means that as resources become more expensive to extract the price of the cheaper to extract resources which are still left also goes up.

This in turn leads to a transfer of purchasing power from consumers to the owners of the cheaper resources.

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