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Unformatted text preview: resources? Throughout economic history, the price ratio between manufactured goods and natural resources has been increasing: natural resources have been getting cheaper (more abundant) relative to manufactured products and to human demand. If we were running out of natural resources, their prices would be sharply increasing. This occasionally does happen, as with oil, but the usual pattern is in the other direction. In fact, one way of describing the plight of the former European colonies that gained their independence after World War II is that during colonialism they had been geared to primary productionnatural resources and agricultural productsand if they kept it up theyd get more and more impoverished. The chief issue confronting these countries is what steps theyd take to stop being primary producers exclusively; we call this economic development....
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- Summer '08