[quote]orion wrote:
gladiatorsteer wrote:
orion wrote:
gladiatorsteer wrote:
what is socialism? socialism is where the means of production are owned by the government provided that the government is directly controlled by the people.
i dont see why it would be impossible for the people to decide where to invest and what to produce. all they would have to do is look at what people need.
They cannot because of the lack of market signals. They are flying completely blind.
You are talking about independently prizing hundreds of millions of goods and services that are constantly shifting aginst each other.
The market can do that, but no mortal being can.
are you saying that the market is some sort of magical entity? is it not put into work andcontrolled by mortal men?
what kind of market signals are you talking about?
Yes I am saying market is a magical entity and I am dead serious about it.
I am talking about market prizes and profit.
if someone privately owns the means of production he can give you a prize. You know if that natural resource, machine, land or service can be part of your product because you can calculate your products prize based on these prizes.
Then you produce and see if people want it enough to pay your prize plus a little profit.
So in essence you are starting an experiment to see if your special mix of scarce resources is wanted/needed by the customers or not.
If they want it enough, you make a profit. If the profit is high there is obviously a high demand, a lot of money can be made so you are going to pour money in that product until the profit is roughly the same as that of competing ways of investing your money.
So, prizes help to allocate scarce resources, profits help to allocate scarce capital.
The market can only work its magic though if millions of little capitalists, and that includes workers too, try to get as much for their property/work as possible and are on the other hand restrained in their demands by competition.
That way all those prizes are continuously “made”, influenced by ever changing relative scarcity and ever changing demand and all those prizes influence all other prizes.
This is something a central planning organization is not capable of.
You only get a good approximation of economic reality if everyone works together, looking out for their own good and so maximising public welfare. [/quote]
i have to say i disagree with you. i dont believe the market is a magical entitity. i think of the market simply as a space where people can do business.
you said that investors decide what to invest in because of the probabilty that it will create a profit. investors are humans so humans control the market.
consumers influence the market by deciding what products they buy. consumers are humans so humans control the market.
however there is an unfair advantage in that all the capital and all the power lies with the great capitalists. so they realize they dont have to concern themselves with the needs of the people but rather what creates the greatest profit.
and besides who decides how scarce capital is? why arent the people allowed to have access to this information? im sure you have heard of the fabricated scarcity of diamonds.
what i am saying is eliminate the idea of profit. istead of using the probabilty of profit as an indicator why not use human needs.
i understand your argument but i see a flaw in it and it does not convince me. the flaw being that the market works as some sort of magical entity