In order for us to have cooperation on a massive scale-cooperation on a scale of millions or tens of millions-we need some sort of signal that tells us whats going on in the economy. It turns out we get that signal in market societies and its in the form of prices. Were all making all these private decisions and it modifies prices a little bit and then we respond appropriately. We dont know whats causing scarcity. We dont know what other peoples desires are or demands are, we can just see that the price of strawberries is cheap over here and its expensive over here and that tells me everything I need to know as a consumer about what to do. The problem with socialism on a mass scale is that they dont have a substitute for prices.
Posted on: Mon, 03 Nov 2014 01:48:28 +0000
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