The Doom and Gloom of Scarcity
TCS: Tech Central Station – Fill ‘er Up with Oils Sands!
It was a tenet of the late great economist Julian Simon that we’ll never run out of any commodity. That’s because before we do the increasing scarcity of that resource will drive up the price and force us to adopt alternatives. For example, as firewood grew scarce people turned to coal, and as the whale oil supply dwindled ’twas petroleum that saved the whales.
Now we’re told we’re running out of petroleum. The “proof” is the high prices at the pump. In fact, oil cost about 50% more per barrel in 1979-80 than now when adjusted for inflation. Yet it’s also true that industrializing nations like China and India are making serious demands on the world’s ability to provide oil and are driving prices up. So is this the beginning of the end?
Read on for the answer.
Filed under: Politics