Econ 101
Energy Milestone: Gas Rig Share Falls Below 30%
What's depicted in the graph is an example of the way the behavior of individuals and firms is affected by prices in a market economy. Multiply this example by the hundreds of thousands of such adjustments occurring every hour of every day, and you can begin to get some sense of the vast complexity and exquisite adaptability of a capitalist economy -- the most productive generator of wealth and higher standards of living there's ever been, by far.
At the same time, you also begin to get a sense of the insurmountable problem with central planning: It can't begin to handle the sheer volume and variety of information that constantly flows through the price system -- with no guiding authority at all, just individual actors pursuing their own interests as efficiently as they know how and as their competitors force them to do. By comparison, central planning is deaf, dumb, and blind.
Byron
What's depicted in the graph is an example of the way the behavior of individuals and firms is affected by prices in a market economy. Multiply this example by the hundreds of thousands of such adjustments occurring every hour of every day, and you can begin to get some sense of the vast complexity and exquisite adaptability of a capitalist economy -- the most productive generator of wealth and higher standards of living there's ever been, by far.
At the same time, you also begin to get a sense of the insurmountable problem with central planning: It can't begin to handle the sheer volume and variety of information that constantly flows through the price system -- with no guiding authority at all, just individual actors pursuing their own interests as efficiently as they know how and as their competitors force them to do. By comparison, central planning is deaf, dumb, and blind.
Byron
posted by Byron | Saturday, June 02, 2012
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