Professor Bernard's picture

Our Scarcity

By Bernard

The consumers will accept to pay more for one good according to their needs when that good is scarce.  Collectively, this attitude will provoque changes on the market and the economy will change accordingly.  Some producers will decide to produce these goods and some consumers will decide to change their behavior and will buy something else.  Scarcity will always be relative to the needs.

Some people, since Malthus, repeat that our population is too large for the ressources that we can use.  And they promote the zero growth policies.  in 1970, the Club of Rome published a report "The Limits To Growth" which was saying the same thing:  the population is growing faster then the available ressources. What did happen since 1970?  The world population is still growing and the wealth on average is better than at that time.  For sure thatthere are some problems, some scarcity, but it is relative.  We have less scarcity now than at that time, even for more prople living on wearth.

During the Desert Storm, the first Irak war, oil prices increased even if the world production had increased during these months in spite of the fact that almost half the world reserves of oil were out of trade.

The history shows that some ressources are scarce and maybe will not be available in the future, like the American buffaloes.  In the future, we may have to go on the moon to get some minerals.  And later, maybe on Mars or Jupiter;  there are so many stars in our galaxy and so many galaxies in the universe.

20110607