The Ultimate Resource

Abstract

Arguing that the ultimate resource is the human spirit, Julian Simon has led a vigorous challenge to conventional beliefs about scarcity of energy and natural resources, pollution of the environment, the effects of immigration, and the perils of overpopulation. This new volume is updated and provides theory for the observed trends: population growth and increased income put pressure on supplies of resources. This increases prices, which provides opportunities and incentive for innovation. Eventually the innovative responses are so successful that prices end up below what they were before the shortage occurred. The book also tackles timely issues such as the supposed rate of species extinction, the vanishing farmland crisis, and the wastefulness of coercive recycling. In Simon's view, the key factor in natural and world economic growth is our capacity for the creation of new ideas and contributions to knowledge. The more people alive who can be trained to help solve the problems that confront us, the faster we can remove obstacles, and the greater the economic inheritance we shall bequeath to our descendants. In conjunction with the size of the educated population, the key constraint on human progress is the nature of the economic-political system: talented people need economic freedom and security to bring their talents to fruition.