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Markets Work. Let Them! (Vol. 100)

No government can improve on the market system

Market economy, just what does that mean?

There are 2 basic types of economic systems: Command and Demand

Command systems are ruled from the top. Government owns the means of production and determines what gets produced and who gets it. They ‘command ‘ the economy.

Demand systems are ruled by consumers. Property is privately owned and privately owned businesses produce what the consumers ‘demand’. That is a market economy, where people are free to buy or sell as they please in the marketplace.

Prices signal to businesses that a product is in demand, or not. Businesses must make a profit or go out of business and price determines that. And the price is set by the market , the interaction of millions of buyers and sellers in the market where goods and services are freely exchanged. Remember your Supply and Demand curves?

That is all well and good and understood by most of us. UNTIL, the government decides to step in ‘for the greater good’. Yea, right. And I have a bridge in Brooklyn I would like to sell you.

The Feds in DC keep fooling around with the markets trying to push some agenda we don't want. For example, those brilliant minds think Electric Vehicles are the answer to our prayers for a clean environment. So they set energy policy to make gas and oil expensive so the comparison to EV’s is better. We pay the price for stupid policy. Expensive energy then ripples through the whole economy.

And guess what, EV’s do almost nothing for the environment. See Facts, No Spin #1, Electric Vehicles. And they are expensive and they are using my tax money to subsidize rich folks buying them. I didn’t vote for that. Now they are trying to make us buy them. They are very nice high tech vehicles, but I don't want one, not yet anyway. And the current technology is going to change because it isn’t workable, en masse.

Here is a novel idea: let the market decide. If you want one, buy it, if you don't want one, don't buy it. Maybe buy one when the technology works and they are less expensive.

Another pet peeve is ethanol - terrible on all counts. Dirty, corrosive, expensive. But they make me use it in the gasoline I buy. I wonder who benefits from that, it isn't us consumers. I guess it is their crony friends who grow corn or produce ethanol. We pay, they benefit. See Facts, No Spin # 48, The Ethanal Caper.


Markets work and if left alone they get the results consumers demand. Those folks in DC aren't so smart after all, the market is much smarter!



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