What Does "Scarcity" Really Mean?

Benjamin Cox |


Benjamin speaks about scarcity in the natural resources markets. First, he distinguishes between natural scarcity and artificial scarcity; the former being of the god-created variety, whereas the latter is the result by human consumption. Benjamin uses nickel as an example to illustrate, and speaks about the ways that its metallurgy, specifically with nickel laterite mines, causes artificial scarcity. With reference to the nickel situation in Indonesia, he sees what they are doing as fair business and, since they have no coking coal, the situation will resolve itself.

 

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