Why do some people claim that the end to economic growth is over or very near? One popular explanation goes this way. Economic growth requires the use of natural resources. On a limited planet, resources are limited. Therefore, when we have used up all our natural resources, economic growth will come to an end. QED.
That explanation belongs in primary school children’s books with illustrations that include smiley faces, but is not suitable for children past their 10th year.
Though quite popular among many biologists (Paul Ehrlich), politicians (Al Gore), gurus (Sadhguru Jaggi), engineers (pick your favorite), and other assorted crazies, that explanation is wrong. The idiotic notions underlying the false explanation were laid to rest by Julian Simon and others many decades ago. But few people have the patience, the capacity or the desire to read Simon. Continue reading