Prices and running out of resources

When one takes an unconventional position it is comforting to find somebody who takes a similar stand.  Here’s an article by someone who is also concerned that we are running out of resources.

I like the following paragraph because it show that resource prices declined during a period of growth and then started to increase when growth slowed.  I think it  supports my claim that to have economic growth marginal cost has to be falling.  When marginal costs start rising new resource discoveries only slow the rate of decline.

The price index of 33 important commodities declined by 70% over the 100 years up to 2002 — an enormous help to industrialized countries in getting rich. Only one commodity, oil, had been flat until 1972 and then, with the advent of the Organization of the Petroleum Exporting Countries, it began to rise. But since 2002, prices of almost all the other commodities, plus oil, tripled in six years; all without a world war and without much comment. Even if prices fell tomorrow by 20% they would still on average have doubled in 10 years, the equivalent of a 7% annual rise.

This writer also points out there are threats to our food supply from climate change and the depletion of two non-renewable fertilizers – phosphorus (phosphate) and potassium (potash).   Agriculture is so important we need to be aware of what is happening on the farm or rather the factory farms.

 

 

If you liked this post your are invited to comment, press the like button and/or click  one of the share buttons. If you disagree you are invited to say why in a comment.  While I like the idea of sharing this platform, my personality is such that I don’t reply to many comments.

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