The PRC Forum - Julian Simon (1of6)

Summary

In this transcript, economist Julian Simon discusses the remarkable increase in life expectancy and living standards over the past 200 years, particularly in richer countries. He challenges the notion of resource scarcity, arguing that as we use more natural resources, we actually have more available. Simon explains that higher demand leads to innovation, making resources more accessible and cheaper. He emphasizes the importance of population growth, asserting that more people create both the demand and the solutions for better living standards.

Takeaways

• 🌟 Life expectancy has dramatically increased in the past 200 years, especially in the richest countries, where it has risen from under 30 to over 70 years.
• 📈 The increase in life expectancy is not limited to rich countries; even poorer countries have seen a significant rise of 15-20 years in the last 30-40 years post-World War II.
• 📉 Contrary to common belief, the use of natural resources has not led to scarcity; instead, they have become more available over time.
• 💰 The price of natural resources, including food, has been decreasing throughout human history, making them more affordable.
• ⏳ The process of resource availability involves initial shortages leading to price increases, which in turn drive innovation and new supply methods.
• 💡 Innovation and problem-solving are driven by the need to meet increased demand, often resulting in better solutions than before the problem arose.
• 🧠 Population growth is essential for economic and technological progress, as it provides both the demand and the intellectual capacity to create solutions.
• 🌱 If the human population had remained small, as it was thousands of years ago, we would lack many modern conveniences and medical advancements.
• 🌱 The speaker argues that we need more people, not fewer, to continue driving demand and innovation, which are key to improving living standards.
• 🌐 The script challenges Malthusian thinking, suggesting that more people and resource usage lead to increased availability and better living conditions.

Q & A

What significant change in human history has Julian Simon observed in the past 200 years?

Julian Simon has observed a significant increase in life expectancy, particularly in the richest countries, from under 30 years to well over 70, as one of the most important and exciting events in human history.

According to Simon, what has been the trend of natural resources' availability as human population and usage have increased?

Contrary to common belief, Simon argues that natural resources have become more available, not scarcer, as their prices have been going down throughout human history.

How does Simon explain the decrease in the price of natural resources over time?

Simon explains that as the demand for natural resources increases, it creates opportunities for innovation, leading to more efficient extraction, cheaper refining processes, or the discovery of substitutes, which in turn lowers the price.

What role does Simon believe problems play in the advancement of human society?

Simon posits that problems are essential for societal advancement as they stimulate challenges that lead to new solutions and an increasing standard of living.

Why does Simon argue that we need more people according to the transcript?

Simon argues that we need more people because they create demand by using more resources and also provide the brains to create ideas and solutions to meet those demands.

What is Simon's stance on the relationship between population growth and technological advancement?

Simon believes that population growth is crucial for technological advancement because it increases the number of minds available to generate new ideas and solutions.

How does Simon's perspective on resource availability challenge the Malthusian view?

Simon's perspective challenges the Malthusian view by asserting that as we use more natural resources, we find ways to make them more available, rather than depleting them, thus contradicting the idea of inevitable resource scarcity.

What example does Simon use to illustrate the decrease in the cost of acquiring natural resources?

Simon uses the example of copper, stating that it now takes a fraction of the human time to earn enough to buy a ton of copper compared to 200 years ago.

What thought experiment does Simon propose to demonstrate the importance of population growth?

Simon proposes a thought experiment where if the Earth's population had remained at 1 million or 10 million, we might not have advanced technologies like electricity, television, air-conditioning, or penicillin.

What does Simon imply about the necessity of problems for societal progress?

Simon implies that problems are necessary for societal progress because they drive innovation and the development of new solutions, ultimately leaving us better off than before the problem arose.