[quote]gladiatorsteer wrote:
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.
[/quote]
It is simply a place where people do business. That requires a constant flow of information though. No marketplace- no information.
They control how to invest their money, what capital is created. They might be wrong though and lose money. They only control their own actions.
Yes, they actually control the market by constantly voting with their money. Very democratic process, in your rather broad definition of democratic.
ONLY if they concern themselves with the needs of the people can they make a profit. Since when can Coca Cola make you buy their soft drinks?
Coca Cola cannot destroy its customers, its consumers can easily destroy them.
Who has the power in this relationship?
You are concentrating on a few rogue corporations who really do hire mercenaries and establish a “banana republic” (Chiquita, aka United Fruit Company) and forget that 90-99 corporations are small to middle sized outfits who are at the mercy of their customers.
They only exist if theyserve and serve well.
The customer is king.
Reality decides how scarce capital is. There are only so many machines, computers, buildings, etc…
Diamonds are a case of an international cartel that controls a natural resource.
As I said, one of the few cases were a market fails, but who the fuck needs diamonds?
That is why nobody cares. There is no shortage of industrial diamonds.
Again the contradiction Human needs vs profit.
It does not work this way.
If you by chance happen to develop a product human people want so much they are willing to pay for, you make a profit. If they REALLY want it, you make a huge profit.
Profit is the tool that makes sure what people want, how much they want it and that that demand is satisfied asap.
The good thing is, we do not need a wise and benevolent ruler for this, just a moderately clever and ambitious guy with a calculator.
[quote]
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[/quote]
The thing is, the more complex life gets, the more people want someone and be it big government to look out for them.
Unfortunately the more complex life gets, the less a central planning station is able to do that.
Ultimately you need to break down decision making into ever smaller units, and they individual is the smallest decision making unit available.
You have 300 million US citizens and all of them have a unique order in their head how much they would pay for any existing product and they constantly give feedback to the market, even on products they do not even know they use.
Seen on a globalscale this is the largest live, on-line, economic information system ever, with constant real time fee back loops.
This might not be magic,but you better have an alternative in place before you try a different system.