There has been an ongoing debate between economists and ecologists for the past 30 years about
whether or not the world is running out of resources. (This is a renewal of a centuries-old debate
that began with Malthus.) Many ecologists have argued that resources are limited and that eco-
nomic growth and unchecked population increases are draining these resources (a barrel of oil
consumed today means one less barrel available tomorrow) and polluting the environment. Lead-
ing economists have pointed out that the cry about limited resources is a false alarm. Technologi-
cal innovation, human progress, and conservation have meant that the supply of resources has
more than kept pace with population growth and can do so indefinitely. Living standards around
the globe are higher today than at any time in the past.
One example of this debate was a bet made in 1981 between Paul Ehrlich, a well-known
scientist, and Julian Simon, an eminent economist.^1 Simon challenged ecologists to pick any
resources they wished and any future date. He then made a simple bet: The prices of the chosen
resources would be lower at the future date than they were at the present time. With the help
of economists and other scientists, Ehrlich selected five resources (copper, chrome, nickel, tin,
and tungsten) for which he predicted increasing scarcity over the next decade. He hypothetically283
CHAPTER 7 Perfect Competition
CHAPTER 7 Perfect Competition
Everything is worth what its purchaser will pay for it.
ANONYMOUSBetting
the Planet(^1) This account is based on John Tierney, “Betting the Planet,” The New York Times Magazine
(December 2, 1990), p. 52.
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