In contrast to the doomsday scenarios that predict we will soon run out of various natural resources, George Reisman has pointed out that the entire planet is a big ball of chemicals that, with the right technology, can be used to meet human wants. “…for all practical purposes, [natural resources] are infinite.”
This ain’t just theory folks. An article from Spiegel documents the work of geologist Peter Herzig who believes it may now be economically feasible to mine “black smokers”: chimneys on the ocean floor that shoot out copper, manganese, nickel and gold.
“The black material contains almost everything our industrial society craves,” says the scientist. Copper for the electronics industry, nickel and zinc used in steel mills, indium for flat-screen displays — even gold for national skyrocketing reserves.
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May the material progress of man never cease!
People do not realize that gas, in a free market, does not suddenly run out.
Gas does not suddenly, in a free market run out. Prices today reflect “expectations†of the available supply and demand for goods and services “today and tomorrowâ€. If, for instance, the expectation is that oil supply will decrease or will be less than demand in ten years time, it will influence oil prices today. Prices today will go up. People will have the incentive to conserve (demand will decrease) and to develop new alternatives. Actually, we are probably conserving too much, because of OPEC and Governments taxations are keeping prices higher than they otherwise would be. “That oil soon runs out†is a political slogan that keeps coming up to keep politicians busy. This political slogan sounds true and will, therefore, “in the political market†sell. Only true markets can handle this sort of complex things. Compared to markets, Governments are too simple minded and primitive, because of the fact; they lack the essential tools that are needed to solve these kind of “problemsâ€. They primitively, for example, regulate car manufacturers (and in the end consumers) to produce cars which improve gas mileage and impose upon people speed limits, without knowing if these actions are good or bad. Only markets can tell if conservations are good or bad, because market prices gives people the necessary signals of supply and demand, and people can therefore compare these prices to their own values if they are profitable or not to realize. The essential tools that are needed (which Governments are always lacking) are, as mentioned, “market forces and the market price mechanismâ€. Without these mechanisms nothing can be done. For example, a scientist will not reach the truth in trying to calculate physical available quantities and compare that to what he expects physical demand will be. It is silly, it is static and mechanistic. Every individual and every business around the whole world, with all the different knowledge, all the time, and in all possible situations, and which are directly influenced of higher prices, will conserve and try out alternatives. Even people and businesses that are not directly influenced of higher oil prices, also, have incentives to find out alternatives. These things happen all the time with all goods, services, capital and raw materials, and it run smoothly without us even noticing it. If Governments were going to replace the markets, we would probably end up with no available goods and services at all! In a sense, this would solve the “conservation problem†(joke). To make an example of this lack of knowledge and the belief that you can ignore markets, look at the so called “Club of Romeâ€, a group that made fools of themselves in the 70s with their book
“Limits to growth†http://www.answers.com/the+club+of+rome?gwp=11&ver=2.0.0.453&method=3
If they were right, we would probably barely, even, live today!
Björn Lundahl
Göteborg Sweden
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