Monday, May 05, 2008
Don't panic
We might all learn something here...
I found this at Canada's National Post website:
"The trouble with doom-and-gloom predictions -- whether they be about oil shortages, food scarcity, water wars or population explosions --is that most are based on the linear extrapolation of short-term trends. If, say, rice prices rise, alarmists assume they will keep rising indefinitely at the same rate -- and then produce scary-looking graphs that show trend lines veering up into the wild-eyed blue yonder.
But history shows that human adaptation invariably intervenes --especially in parts of the world that have the benefit of a market economy. Scarcity drives innovations that pull the world back from the brink. Consumers take high prices as their cue to consume less; producers take the same cue to produce more. A new equilibrium is reached, just as college microeconomics textbooks would predict."
