In article <
CNadnRVHm6aGJTnS...@giganews.com>,
Have you read Malthus? What do you think he predicted?
> and we did it by improving our
> technology and its applications.
I don't think that is the reason that Malthus' prediction turned out to
be mistaken--he allowed for increasing productivity.
> Do you believe we can go on doing
> this indefinitely?
The model used for Limits to Growth was fundamentally wrong--I don't
think that, when it came out, I knew any economists who took it
seriously. It left out rational feedbacks.
Simple example, that I happen to remember. In their model, if the price
of food went up, farmers produced more but depleted the soil in the
process, so future output went down. But if farmers expect prices to
stay high, it's in their interest to both produce more in the present
and in the future, hence to take good care of the soil.
And we have some evidence on the matter. Food prices in Japan have been
high for a long time, Japan has a very high productivity per acre--and
it keeps having it.
You might as well try to predict the behavior of an automobile with a
model which includes everything except the driver actually looking out
the windshield and adjusting what he does accordingly.
Note also that some of the predictions, including both the ones I
mentioned, were made with great confidence. If someone tells you he is
sure something is going to happen and it doesn't, that gives you good
reason to distrust his judgement--hence other things he tells you.
Conventional end of the world cults have the same out you are
offering--they just got the parameters wrong, so the world is going to
end in another three years instead of yesterday. Do you believe them?
> I think reasonable expectation is, *we can't* go on indefinitely as
> we are doing now.
We can be confident that we won't, since technological change means that
what we do keeps changing.
> I think rather, the more powerful the resources we
> employ to put-off an eventual crash, the larger and more hurtful the
> crash will be when it comes. Faster, too, once it starts.
You are assuming your conclusion--the eventual crash.
> And that that point will come, seems expectable. Because, those
> people we assign to overall government and reckoning, only are there
> for a few years and their ambition is not to do what is best for a
> longterm future, but rather, to quickly extract as much as possible
> for themelves and then retire, never mind that future out there.
A correct description of political decision making but not of market
decision making. If I own land and am considering planting slow growing
but valuable hardwoods, it's in my interest to allow for effects beyond
my lifetime--because in twenty years I can sell the land, with partly
grown trees on it, at a price reflecting the fact that it is now 20
years closer to harvest. Long run planning requires secure property
rights, which we can and to some degree do have on the private market
but not the political market.
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