If the resources are finite then how are economies growing?

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If the resources are finite then how are economies growing?

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Anonymous 0 Comments

Most resources are finite but we have yet to extract nearly all resources. And while we extract new resources the resources already extracted is still being used to grow the economy decades after they have been extracted. Say for example that your grandfather built a house using timber he fell from his own forest. That house is likely still standing today and providing home for people. It only requires some upkeep. This means that all that labor and woods he extracted back then is still providing value to the economy today. Meanwhile you can go into the same forest today and extract lumber from the trees your grandfather planted and build yourself another house. Even though you and your grandfather extracted the same resources, both in labor and lumber you are now twice as much worth as he because you have two houses. The economy have grown.

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