Episode Overview

This Naval podcast episode, "To a Caveman Very Few Things Are Resources," dives into the notion of resource scarcity, the evolution of what society considers to be a "resource," and common misconceptions about global consumption and waste. Naval critically examines popular narratives about waste in business and scarcity of resources, showing that our understanding of resources is deeply tied to human knowledge and technological progress.

Key Discussion Points & Insights

Critique of Public Perception on Business Waste

• Naval responds to media stories (like the one about Amazon destroying excess products):

  • The public often misunderstands how businesses like Amazon manage supply and demand.
  • It's impossible for any company to perfectly predict demand ("perfect knowledge").
  • Slight overproduction is a logical outcome in business to avoid shortages.

  "What would they prefer? Would they prefer Amazon to have the impossible, namely, perfect knowledge of precisely how many products need to be made... Or would they prefer that Amazon made insufficient products so the people who wanted to purchase them weren't actually able to get hold of them?"
  — Speaker A [00:15]

  • Overproduction is the norm rather than wasteful or negligent behavior.

The "Too Many Shoes" Argument & Arbitrary Limits

• Naval recounts a conversation with a venture capitalist lamenting capitalism's "overproduction" (specifically sneakers):

  • Questions who decides when "enough" products exist.
  • Highlights that product innovation and diversity continuously serve unmet or new consumer needs.

  "When did you know that there were too many shoes? What's the point in history where we decide there's too many shoes?"
  — Naval [00:50]

  • The notion of "enough" is inherently subjective and often rooted in present-day parochialism.

The Fallacy of Finite Resources

• Naval critiques the dominant narrative of planetary resource finitude:

  • Challenges why we define boundaries around Earth as if they're natural limits for resources.
  • Points out that expansion beyond Earth is feasible—resources exist in the solar system, galaxy, even the universe.

  "Why draw the boundary around the Earth? We could go to the solar system, we could go to the galaxy, we could go to the universe, go to the multiverse. There’s a lot of resources out there, if you know how to harness them."
  — Naval [01:50]

• He questions the very definition of 'resource':

  • What qualifies as a "resource" is dictated by human knowledge and technological ability.
  • Historically, many now-valuable materials (iron, coal, uranium) were once useless.

  "To a caveman, very few things are resources. Just a few edible plants and a few edible animals, and that's it."
  — Naval [02:33]

  • Human progress hinges on converting the previously useless into resources via knowledge.

Knowledge as the Infinite Resource

• Naval argues that limitations in resources are fundamentally limitations in knowledge:

  • The "finite resources" worldview assumes we've reached the end of knowledge creation.
  • As long as knowledge can be generated, formerly "finite" resources can multiply.

  "This finite resource model of the world implicitly assumes finite knowledge. ... But knowledge is the thing that we can always create more of."
  — Naval [03:12]

  • Conservatism in resource usage is rooted in a static understanding of human activity, rather than an appreciation of continual innovation.

Notable Quotes & Memorable Moments

• On the impossibility of perfect demand predictions:

  "Amazon of course does is make slightly more than what they need. That's what happens in any business."
  — Speaker A [00:37]

• On technological progress redefining resources:

  "So there was a time when coal wasn't a resource, iron wasn't a resource... Uranium has gone from being completely worthless to being an incredible resource."
  — Naval [02:41]

• On the philosophical flaw in conservation arguments:

  "This finite resource model of the world implicitly assumes finite knowledge. It says, knowledge creation has come to an end. ... But knowledge is the thing that we can always create more of."
  — Naval [03:12]

Timestamps for Important Segments

• 00:00–00:37 — Discussion on Amazon and business ‘waste’; critique of public/media understanding.
• 00:45–01:29 — Parochialism in attitudes towards product abundance (“too many shoes” argument).
• 01:30–02:33 — Examination of resource boundaries; critique of “finite earth” thinking.
• 02:33–02:55 — Historical evolution of resources—as dictated by knowledge and technology.
• 02:55–end — Knowledge as infinite; the dangers of assuming fixed resource sets.

Conclusion

In this thought-provoking episode, Naval challenges common assumptions about scarcity, value, and sustainability. He argues that resources are not fixed by the physical world but are instead created and expanded through knowledge. The conversation urges listeners to reconsider narratives around waste and overconsumption, recognizing that human ingenuity is the true wellspring of abundance.