The goal of the market economy is to get goods and services to the people who value them most. People get a notion that there are certain economic rights - but these right's can't exist separate from duties and obligations.
Advantages of the Price System
Markets organize themselves; prices force people to economize. Without the price system, there is no way to know anyone else's needs because there are no signals. If you price water, and its price rises, it incentivizes people to produce more water (develop new technologies). Rationing occurs through individual choice.
Healthcare
Kidneys: by banning the sale of kidneys. the profit opportunity is actually higher on the black market. Zero sum world when we talk about kidneys. When you're not selling kidneys, the marginal value of a kidney is much higher.
Transactions
Money changes the nature of the transaction as opposed to bartering. Bartering is really inefficient because of all the transaction costs you must endure (i.e. finding someone to trade with, dividing up your good). Money solves the double consequence of wants problem: suppose we didn't have money, over time, money emerges. Prices emerge to allocate goods - we use price sot assign a monetary value to goods because it lowers the transaction cost of engaging in market activity.
Rizzo
-Daniel Gaona
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