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Re:Technology Is Deflationary and This Shouldn't Be Controve... by rhelz on Sunday October 29, 2023 @01:35PM (#38060799)
In any free market, at equilibrium, all prices for any good decreases to the absolute minimum required to produce that good. There is no profit--it is all competed away.

If you want profit, you can't be in a free market at equilibrium. You can either attack the "free" part (create an aristocracy or oligarchy) or the "equilibrium" part by introducing disruptive innovations, which will lower the cost of producing something, allowing you to extract some profit.

But eventually, a free market will return to equilibrium, by lowering all the prices to reflect the reduced costs of production, and profits will be competed away again.

All innovation is therefore deflationary, and happens in the context of a market which is not in equilibrium, i.e. is unstable, and therefore will crash from time to time.

Surviving these crashes is easier if you are an aristocrat or oligarch, so....we get what we have today, a mixed market, free enough to allow for innovation, but which most of the profits go to oligarchs.

Re:Technology Is Deflationary and This Shouldn't Be Controve... by josephcsible on Sunday October 29, 2023 @08:06PM (#38064152)
Minor nitpick: there won't be economic profit but there will be accounting profit.
Re:Technology Is Deflationary and This Shouldn't Be Controve... by rhelz on Monday October 30, 2023 @02:27PM (#38073596)
Can you clarify? Seems like if a company is making accounting profit, that would ipso facto, in a free market, represent an opportunity for another company to come in, under bid them, and take some of that profit for themselves....and so on until there's none left to take.
Re:Technology Is Deflationary and This Shouldn't Be Controve... by josephcsible on Monday October 30, 2023 @11:58PM (#38080107)
There are implicit costs that aren't included when calculating accounting profit. See also https://en.wikipedia.org/wiki/Profit_(economics) and https://en.wikipedia.org/wiki/Implicit_cost