Markets generate nominal or current prices of commodities, and those prices are the best proxies we have for understanding resource availability at any given time.
To understand long-term trends in the availability of resources, which is what both Simon and Ehrlich were interested in, one must start by adjusting the nominal prices of commodities for inflation.
These zones are demarcated by lines, which reflect the magnitude of the change in the time-price of commodities relative to population growth or PEP. We call this progression from scarcity to greater abundance the Simon Abundance Framework.
Should the time-price of our basket of commodities fall at a somewhat slower rate than the NLE determines in the future, the economy will revert to accelerating abundance.
Simon foresaw greater resource abundance and predicted that cheaper commodities would translate into higher living standards.
To see what has been happening to world commodity prices, we looked at the World Bank's commodity price data and the IMF primary commodity prices going back to 1980.
https://www.cato.org/publications/policy-analysis/simon-abundance-index-new-way-measure-availability-resources
To understand long-term trends in the availability of resources, which is what both Simon and Ehrlich were interested in, one must start by adjusting the nominal prices of commodities for inflation.
These zones are demarcated by lines, which reflect the magnitude of the change in the time-price of commodities relative to population growth or PEP. We call this progression from scarcity to greater abundance the Simon Abundance Framework.
Should the time-price of our basket of commodities fall at a somewhat slower rate than the NLE determines in the future, the economy will revert to accelerating abundance.
Simon foresaw greater resource abundance and predicted that cheaper commodities would translate into higher living standards.
To see what has been happening to world commodity prices, we looked at the World Bank's commodity price data and the IMF primary commodity prices going back to 1980.
https://www.cato.org/publications/policy-analysis/simon-abundance-index-new-way-measure-availability-resources
No comments:
Post a Comment