Discuss the following statement: "If society decides to use its resources fully and efficiently (that is to produce on the PPF), then future generations will be worse off because they will not be able to use these resources." If this assertion is true, full employment of resources may not be a good thing. Comment on the validity of this assertion.

The validity of this assertion depends on the usage of these resources.

Explanation:

The answer to this question lies on how the available resources are spent. In a situation where resources are spent on the production of goods that have short lifespan of about 3 years with little or no capital production, it becomes a problem for future generations.

On the other hand, if a society uses the resources it has for the production of capital goods and for the sake of research purposes, future generations would benefit and be better off because economic growth would be faster.