Paul Krugman’s “Finite World”

Don Boudreaux:

It’s not true that vigorous economic growth necessarily makes resources more scarce. In fact, history shows that, because of human ingenuity, the opposite is not only possible but prevalent.

Ingenuity, that human trait central planners ignore. I would also point out that politicians of all stripes around the world are causing shortages of commodities such as oil. OPEC still exists, governments control more than 90% of the petroleum in the world and their restrictive policies cause inefficient processing of the stuff.

An economic recession is a response to high prices, which reduces quantity demanded for various commodities.

Mark Perry has comments also.

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