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Re: Economists on ecology (Re: GOODBY MIKE!)



Markets account for not only current levels of supply and demand, but 
also for future levels.  Anticipated prices (resulting from supply and 
demand relationships in the future) cause producers and consumers to 
defer production/consumption decisions.

For example, if there is an anticipated shortage of natural gas in the 
future, at current price levels, it is known that prices will be bid up 
to again clear the market (supply = demand).  Suppliers of natural gas 
will hold product off the market to obtain those elevated prices in the 
future.  

Making extrapolations based upon current known supplies, prices, usage 
rates, technology etc. and then assuming that the market can't respond 
over time to changes is bad economics.  

This is exactly what led Thomas Malthus to predict that the human 
population would be reduced to cannibalism as a result of overpopulation 
and the burden on the natural resources.  He failed to account for 
markets, future technology and a myriad of other factors.  Obviously he 
was wrong, but a century later environmentalists are still promoting the 
'sky is falling' theory using the same false methodology,



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