The Hillsdale College Online Courses Podcast Understanding Capitalism: Technology and Resources
9 snips
Jun 4, 2025 Charles N. Steele, professor and lecturer on political economy, presents Lesson 6 on how technology and entrepreneurship transform materials into resources. He discusses knowledge as the engine of endless innovation. Short stories range from pelletized iron and fracking to fiber optics replacing copper. Markets, property rights, and price signals guide conservation and resource expansion.
AI Snips
Chapters
Transcript
Episode notes
Technology Is Knowledge That Creates Resources
- Technology is knowledge that expands what materials count as resources.
- Charles N. Steele explains technology includes organization, contracting, and human relations, not just engineering, so new knowledge turns previously useless materials into usable resources.
Pelletization Rescued Mesabi Iron Ore
- Pelletization turned low-grade Mesabi iron ore into a viable resource during and after WWII.
- Republic Steel predicted exhaustion, but the new pelletization process doubled blast furnace effectiveness and increased usable reserves.
Using Resources Creates Incentives To Expand Them
- Greater use of a resource spurs innovation that makes it effectively more available.
- Julian Simon's view: rising scarcity raises prices and profit incentives, prompting cost-saving discoveries like thinner copper wire then fiber optics and cellular tech.