Monday, July 9, 2007
One problem is the way you look at the market. You treat it as if it is this utopian place with everything being decided with persuasion and discussion and choice. But, if the market worked the way you imagined it does, it wouldn't work at all. In reality, the market gets things done by constraining people, by forcing them to innovate and cost cut (for businesses) or work (for individuals) or perish. It coordinates activity via what we would call a bribe if it was done by an individual. Nobody chooses the price of an item, or gets to choose whether there product would be sucessful, nor is anything decided by a roundtable discussion. If all businesses could really choose what the price of an item was, or how much of X could be produced profitably, or how much they get paid for and what ("well, regardless of your argument that a doctor ought to be paid a lot and an XBOX player nothing, I voluntarily choose that I'm a pro XBOX player and a millionaire") was then market societies would be unmitigated disasters. The market works, when it does work, BY REMOVING THESE CHOICES, BY TAKING AWAY AN INDIVIDUAL'S RIGHT TO DECIDE. The market is a way for people to control the behavior of other human beings, and that is why it is a good thing, as this aspect of the market allows us to be better off than we would be without a market because it coordinates our behavior: it gets us to do socially beneficial things that we wouldn't do IF WE HAD THE CHOICE. Don't produce, don't make much money. Don't make what consumers want, go out of business. Waste, and lose market share and profitability. What is and isn't acceptable in the market is decided by power (namely, that of dollars) just as what is and isn't accceptable in a state is decided by power (namely, that of votes).
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