Discussion about this post

User's avatar
jacob silverman's avatar

Did you say "Efficient markets"?? I wrote what I think about it.

- the theory of Efficient markets is not supported. This is a wrong idea. Nothing of the sort occurs. If you say this kind of stuff, you are making inaccurate statements of fact. The costs of production nor the persons ever behave efficiently, evening out all disparities. Economic production is not really economical. Inequalities do not even themselves out because of price fluctuations. If there was such a natural efficiency, you could show it --- on a chart or graph. It might show up in an equation of set of equations or a system of mathematics or something like that. And they find these equation. They produce these graphs and charts but that does not mean it is valid. They say there is a set of dynamic, mechanical forces, so by analogy, if there is a valve and you take the pressure down, it has a result. There might be several quantititative factors that create specific outcome, if increased or decreased, just as one would increase or decrease the flow or air pressure, or steam. Due to these mechanical changes, certain changes in the real world would occur. They claim that changes in demand and supply create a change in price of some given item of trade, a commercial product. It could also be supply of some item, or level of employment, and so on. These recognized as "economic" measures, things ruled by economics. They cannot measure labor in the household; they can only measure it in the paid or "commercial" sector (but this must include government a well, or anyone who uses money to compensate/reward others for their time.) All of those kinds of jobs such as priest, senator, college instructor, or businessman are included in this "economics" designation.

The basic economic question is, simply, "how are these contributions measured and rewarded?" That it has to do with some kind of price-driven human purchase decisions is a general theory. That does not mean that it is driven by the levels of certain types of supply factors, including supply of human labor. But if they cannot say that all these things follow the same general principles, then the theory does not hold. This is a very far-reaching theory saying specific things about how economic decisions, behaviors, actions, movement, etc. occur. They are not necessarily right about what the are saying. If must be seriously thought about, evaluated.

For example these persons say that a product becomes avilable when there is "demand" for it. But where does "demand" come from? Does it just show up one day? And then it falls, supposedly, into a certain sort of quantitative variability? It is all a pretty little fantasyland but we are free to believe in it or not.

Expand full comment

No posts