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I used to fear that humans are in a Malthusian death spiral, but I have become convinced otherwise.

For nearly two centuries, the Malthusians have been predicting catastrophe due to the high resource consumption brought about by industrialization. Instead, the opposite keeps happening, and the apocalypse keeps getting postponed. Why?

Economists like Julian Simon argue that when people respect each other’s property and have the freedom to exchange goods and services, a spontaneous order emerges. Prices driven by supply and demand allow resources to be allocated without direction from a central authority.

This may seem like a recipe to decimate planet earth, yet we hardly seem to run out of natural resources. That’s because market forces promote innovation and adaptation, which humans are quite good at doing. Human innovation and wealth creation lead to paradoxical phenomena like the environmental Kuznets curve and the steady decline in climate related deaths over the past century.

Low time preference, environmental conservation, and innovation are enhanced with private property and economic freedom. The Soviet Union’s atrocious environmental record is evidence of what happens without them.

As a species we are unique in our ability to understand the concept of property and to innovate. It seems counterintuitive, but when left free to achieve our own self interests while respecting the property rights of others, we can continue to prosper and preserve our planet.

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