Resources● Randomness is governed by ● Biodiversity is very important for survival of species, ex: bees polinating● BIodiversity offers antibiotics - almost all human antibiotics are based off of antibiotics onthe microbial level ● Specialization occurs usually within stable environments, allows niches to be formed● Leads to beauty● There have been 5 stages of mass extinction.● Humans will bring on climate change for 6th mass extinction.Types of Resources● Human resources - for economies● Produced Assets - hammers, nails, tools to make life more pleasant● Natural Resources - oil, coal, heavy metals, things provided by environment○ Exhaustible Resources - geologic endowment○ Renewable Resources - wind energy, water○ Intangible Resources - things that aren’t given economic value○ Economic categories - proven reserves = resources we know that are available, (harder to extract is more expensive to reach, so lower in value), ○ Ex: now currently 300 earthquakes in Oklahoma due to fracking. -the process ofdrilling and injecting fluid into the ground at a high pressure in order to fracture shale rocks to release natural gas inside. There are more than 500,000 active natural gas wells in the US.○ Known resources (located but not mapped)○ Undiscovered○ Recoverable-Accessible by current technology, but not likely to be economic■ Cost more to extract than it is worth to you○ NonrecoverableCurrent Resource Management● Adam Smith’s “Wealth of nations” justifies approach to use of national resources● Competition between individuals leads to improved efficiencies of system● Proven to be most efficient economic system until now● BUT Kiefer believes Adam Smith’s time is reaching near end, because our resources arebecoming limited.● Smith’s free market system is based on:○ Throw-away economy○ Emphasis on continuous growth “we need to keep growing,” ie. China is growing 10% and US only 2% ○ Dependence upon non-renewable resources.○ Ecological Externalities○ Globalization○ Single parameter decision-making process. Economists telling politicians how to maximize wealth - short term perspective.● “Within a free market, efforts by every individual trying to maximize his/her wealth will lead to optimal “utility” of resources and unending growth of the market.● Robert Malthus (not popular vote), Geometric increase in population whose needs depend on finite resource cannot be maintained; scarcity is inevitable, need for planning.● Exemptionalism = those who believe human ingenuity can overcome anything.● Anthropogenic Flow of Materials○ Raw materials . energy in extraction & manufaturing○ New products - energy in recycling, aging○ Old Products● Exploitation of Renewable Resource = Introduction of new youth into population must equal loss of adults in the population.Long Range Planning vs. Short Term Profitability● Government help with resource management● Ex: currently government offers tax-breaks for those using solar panels, renewable energies● Ex: Super-Pacs allow corporations to be viewed/treated as citizens, donate unlimited finances to US election candidates in trade for benefits once elected.● > so Government should be independent, but isn’t.What percentage of people have access to…?● **check these stats.Throw-away economy● Using non-renewable resources for something you’re holding in hand for short period of time.“Externalities”● View of System ignoring externalities vs. View of System including externalities● **economists should include externalities in their evaluation of system efficiencies.Tragedy of the Commons● Tragedy of a truly free market - in which everyone maximizing what they want, eventuallyresources will be depleted.● Catch: private ownership provides motivation through competition and goal profits, but it can also be driven by short term profit and lead to unsustainable management● Government ownership can lead to inefficiencies because of absence of competition andlack of profit, but it can be driven by goal of sustainabilityComic = even if climate change isn’t real, practicing sustainability will lead to better living, healthy children, clean water, etc.● Continual bad practices will lead to bad quality of energy from coal, oil, etc.● If we go to sustainable, green economy, there will be many more jobs● Ex: Holland allocates of jobs to resource management - has one of highest standards ⅓of living. Wanna see future of a green world? See Holland. What about happiness Mr. Adam Smith?1. Close relationships2. If you feel that you are contributing in something larger than yourself, if you feel that you are productive individual within a larger context,3. Spiritual fulfillment (religion, music, cinema, drama, nature), something that gives you broader perspective than the immediate needs of your life**THERE WILL BE QUESTION ON EXAM OF THE SLIDES ABOUT COOPERATION**● Quote, mathematically proven examples, have 5 rules**ALSO READ POEM, THERE WILL BE QUESTION ON EXAM FROM POEM at beginning of