Re:Economists who defend disaster profiteers are wrong
by jbay on Tuesday April 14, 2020 @06:31PM
(#22872286)
You sound very certain about this. Where does that certainty come from?
Re:Economists who defend disaster profiteers are wrong
by Consultant32452 on Wednesday April 15, 2020 @12:52AM
(#22874640)
If you have an interest in learning the core concepts of economics I can't speak highly enough about "Basic Economics" by Thomas Sowell. It provides a really great understanding of economics using history and lots of real world examples to explain the concepts in plain English. It's non-technical enough that the audio book is an excellent fit.
https://www.amazon.com/Basic-Economics-Fifth-Common-Economy/...
Re:Economists who defend disaster profiteers are wrong
by gruez on Tuesday April 14, 2020 @10:39PM
(#22873903)
This is pretty mainstream economics.
Re:Economists who defend disaster profiteers are wrong
by jbay on Wednesday April 15, 2020 @01:38AM
(#22874877)
The grandparent's label of "central planning" seems to encompass almost any possible policy that deviates from a completely free market. I don't think any mainstream economics, other than caricatures, supports the idea that any possible economic policy that isn't a completely free market doesn't work.
Re:Economists who defend disaster profiteers are wrong
by Consultant32452 on Wednesday April 15, 2020 @04:22PM
(#22882573)
You are making false claims about what I said. I intentionally used language like "better/worse" or "more/less efficient." Of course central planning will "work" in the sense that you will see that someone commanded some masks to be sent to a hospital, the hospital used them, and some lives were saved. However, a basic understanding of economics informs us that pricing is a more efficient tool at getting masks where they are most needed, and is likely to save even more lives. Pricing simply works "better."
Pricing spreads the capability of resource allocation around. In the central planning model the poor desperate person is reliant on a tiny group of central planners to allocate them some resources, and the central planners may not see that particular poor/desperate group. With the pricing model, anyone with the means can allocate resources where they see a need. In both scenarios the poor are reliant on someone else to allocate them resources. In the pricing model, the poor person has a better chance of being seen by at least someone with the means to make it happen.