the price system is bad for economic productivity and jobs

[Boshembechle]

An economy COULD produce more if it wanted to, but it won't because of the free market's mechanism of finding the correct price.



The above illustration shows that a quantity of 50 COULD be produced (which means more productivity and more jobs), but it won't because of the price.

[Petar]

An economy COULD produce more if it wanted to, but it won't because of the free market's mechanism of finding the correct price.



The above illustration shows that a quantity of 50 COULD be produced (which means more productivity and more jobs), but it won't because of the price.

Are you aware that we don't currently operate in a free-market?

[Petar]

And yes, a slave always could produce more...

[Boshembechle]

And yes, a slave always could produce more...

Who said anything about slavery?

[CaptUSA]

Ok, this convinces me. This is someone's sock puppet just having fun. Nobody is really this stupid.

[Petar]

Who said anything about slavery?

Either you are free to set the price of your own labor/goods or you are not...

[Petar]

And why do you refuse to recognize that we don't currently live in a free-market?

[PaulConventionWV]

Now THAT is stupid.

[Boshembechle]

Ok, this convinces me. This is someone's sock puppet just having fun. Nobody is really this stupid.

How so? Is it true or is it not true that the price determines how much is produced? Our economy could easily produce more cars, clothing, etc but will not because of price. It makes no sense. Why not use ALL of your resources you have available?

[CaptUSA]

How so? Is it true or is it not true that the price determines how much is produced? Our economy could easily produce more cars, clothing, etc but will not because of price. It makes no sense. Why not use ALL of your resources you have available?

Funny. Is this fun for you? Pretending to be an idiot? Andy Kaufman would be proud.

[Henry Rogue]

Great, the world can produce 20 Trillion cars and 13 tires.

[NorthCarolinaLiberty]

Tonight, there is at least one unemployed, self-centered, really, really, lazy ass who demands that somebody give him a job.

[Cleaner44]

An economy COULD produce more if it wanted to, but it won't because of the free market's mechanism of finding the correct price.



The above illustration shows that a quantity of 50 COULD be produced (which means more productivity and more jobs), but it won't because of the price.

How so? Is it true or is it not true that the price determines how much is produced? Our economy could easily produce more cars, clothing, etc but will not because of price. It makes no sense. Why not use ALL of your resources you have available?

You should sue the economy for being such a dick. Tell that bastard to start producing more like a good communist economy would. There is a reason that all of the greatest economies in the world are communist and this stupid free market economy we are stuck with is an $#@! for keeping people from having jobs.

You know what I really hate about our economy? It's how the economy doesn't care about the poor. I mean if you look at the communist nations in the world, they don't have poor people. But here in America our economy just doesn't seem to give a $#@! about the poor.

Please sue the economy and end this injustice now! Don't turn your back on the poor. Only you can prevent poverty.

[oyarde]

Great, the world can produce 20 Trillion cars and 13 tires.

I have about four or five tires in case of that

[osan]

An economy COULD produce more if it wanted to, but it won't because of the free market's mechanism of finding the correct price.



The above illustration shows that a quantity of 50 COULD be produced (which means more productivity and more jobs), but it won't because of the price.

Your understanding of economics sucks really badly, I am sorry to inform you. If you knew how wildly wrong you are, you would wear a paper bag over your head both publicly and privately for the next 5 years.

[P3ter_Griffin]

[brandon]

yall posting in a fire11 thread?

[acptulsa]

And here's my unlabeled X shaped graph proving your unlabeled X shaped graph is all wrong:

X

[ctiger2]

Ben Bernanke trolling RPF's. lol

[Boshembechle]

Yes you are, for consumers determine the price

[euphemia]

I would rather make intelligent and prudent choices about how I spend what I earn than expect everyone else to work harder so I can have more stuff.

[Boshembechle]

I would rather make intelligent and prudent choices about how I spend what I earn than expect everyone else to work harder so I can have more stuff.

You would expect them to work harder, and they would expect you to work harder. Seems like a fine system that ensures mutual destruction of scarcity.

[oyarde]

You would expect them to work harder, and they would expect you to work harder. Seems like a fine system that ensures mutual destruction of scarcity.

I work hard every day . I care not if others work at all so long as they get nothing from my labor , as it should be .Ticks .

[oyarde]

yall posting in a fire11 thread?

Nah , they would ban him and encourage more commies instead .

[euphemia]

You would expect them to work harder, and they would expect you to work harder. Seems like a fine system that ensures mutual destruction of scarcity.

Exactly. People work harder to produce more stuff so you can work harder to earn it.

[P3ter_Griffin]

Yes you are, for consumers determine the price

I agree that for an exchange to take place the consumer must be willing and able to pay the asking price. If we assume we're dealing with a rational consumer this is setting the upper bounds of pricing. The individual offering the product is the sole determinate of the lower bounds. Supply and demand or equilibrium pricing is a business's pricing mechanism. Just as cost of production theory of value could be a business's pricing mechanism. As arbitrarily setting prices could be. Free markets have no pricing mechanism. They are markets free of force. The rest is left to the individual actors.

[anaconda]

An economy COULD produce more if it wanted to, but it won't because of the free market's mechanism of finding the correct price.



The above illustration shows that a quantity of 50 COULD be produced (which means more productivity and more jobs), but it won't because of the price.

What your graph shows you is that consumers are only willing to buy 50 units if the price is 1, and producers are only willing to produce 50 units if the price is 5. So neither will do either, and those resources will be fortunately directed elsewhere. Social welfare is opitmized at the clearing price of 3 and an output of 30. This maximizes consumer surplus and producer surplus and social welfare. Any beginning principles text in micro will cover this in the first few chapters.

[Boshembechle]

What your graph shows you is that consumers are only willing to buy 50 units if the price is 1, and producers are only willing to produce 50 units if the price is 5. So neither will do either, and those resources will be fortunately directed elsewhere. Social welfare is opitmized at the clearing price of 3 and an output of 30. This maximizes consumer surplus and producer surplus and social welfare. Any beginning principles text in micro will cover this in the first few chapters.

Exactly. The price system makes it uneconomical for actors in a market to produce at a level that creates abundance. If the price was 0, and the firm was owned by an entity that didn't have to deal with costs, there would be much more production. (enough to solve the scarcity issue)

[euphemia]

Who doesn't have to deal with costs? Raw materials, technology, and labor cost something.

[Boshembechle]

Who doesn't have to deal with costs? Raw materials, technology, and labor cost something.

Only in free markets