posted on Jul, 8 2015 @ 01:46 PM
originally posted by: greencmp
a reply to: onequestion
You are asking the right questions though, I imagine you won't like my explanation.
Competition is simply the absence of oppression to loosely quote Bastiat. Competition is what keeps prices down and the lack of it is what keeps
prices up. Demand by people is what causes increased cost and eventually supply, lack of it results in diminished cost and supply. Supply grows when
prices rise and shrinks when prices fall.
These facts cannot be legislated out of existence.
Simplistically yes. If EVERYONE plays by the rules yes. We know that this does not happen. This simplistic market driven economics suffers from the
same flaw as the idealistic communist approach and that is that humans do not play by the rules (market economy) nor do they all collectively behave
for the good of all (communist). We know there are greedy, selfish , ignorant people who distort the situation.
In a supply-demand economy you can increase your wealth (greed) by creating a false shortage. There are many ways of doing this. Buy the competition
and have a monopoly, then control the supply. Have deals with the competition to achieve the same. Stir into this mix the fact that human labour is
treated as a resource and thus priced and thus if there is an imbalance then cheap labour will be used in preference to the higher cost
You also have the problem of the raw materials. There is a limit to the amount of raw materials and you have two basic methods of extraction :
1. Consume everything as fast as the demand requires, take the money and profits and sit back afterwards.
2. Limit consumption to ensure supply for all generations which limits profits and ironically increases prices.
Needless to say we follow method 1 and have to
since number 2 requires legislation and government intervention (which people complain
The solution! Well you have to split the economy in two. One side is the essentials : food, water, energy, health etc. On the other side is the non
essentials : TV's, Cars, luxury clothes, fine wine etc
You control the supply of essentials so that everyone gets a fair and necessary share. You lift all legislation and controls on the non essentials.
Why? Well if anyone providing TV's was to capture the market and distort supply we can all not buy and nobody will suffer. It is not in in the
interest of any supplier to distort the market in non essential goods. With essential goods the situation is different. Being held hostage to
distorted market economics when you are thirsty, hungry or sick only fuels discontent and eventual social breakdown. Noticed recently !!!!
Oh and the old mantra that private/competition is best is utter BS. Good management is what works on both public and private and ideology usually
plays a part in the bad management of one over the other. Make the public utilities/ essential suppliers cooperatives since every worker is a
consumer then this is bound to result in a healthy business. Make self interest work for all....jaw dropper.