Why Do We Exchange?

If we each have a boxed lunch with the same sandwich, chips, a pickle, and a cookie, why would we consider trading items? Perhaps I prefer chips and you prefer cookies. Maybe I’ll give you my cookie for your chips. Now both of us are happier with our lunches. This is one example of how exchange can make people better off even without increasing the total amount of wealth. Exchange helps correct mistakes in allocation and it makes everyone involved happier. Professor Michael C. Munger offers a few examples of how exchange can make people happier whether people have the same preferences or different preferences, the same stuff to start with or different stuff. The ability to make people better off by simple exchange may seem like magic, Munger says, but it’s just markets.

Markets are this amazing organic machine that sorts out what best fits where, how much do of what we need, how much each thing should cost and any other unknown we may have on an individual level. 

This is because a market doesn’t need leadership or guidance or any form of planning or even creation or assembly of the market. It only requires participation. So long as there are enough parties that are willing to participate in exchange, the market will filter through all the information and coordinate the rest of the details. It sounds like magic, but it’s not. It’s logic. 

This phenomenon is one of my favorite things to introduce to people who are knew to economics or free market theory. It totally blows their mind at first, almost to the point that they don’t believe it or even deny it. 

Markets!

priceofliberty:

byulibertarian:

enemyofthestatist:

I’m just really surprised by the number of libertarians who are pro-mandatory labeling for GMOs.

Aren’t you guys supposed to be against government intervention?

Agreed. I always thought this was odd as well. 

Wait, there are libertarians who are pro-mandatory labeling?

What about a society (of libertarians), let’s say there are 400 members living there. A new person moves into town, he is the 401st member of the neighborhood. As is his right, he opens on HIS property a brand new store. What if the other 400 libertarian neighbors (plus the new member) all got together and vigorously debated the GMO labeling issue. In the end 399 people believe that their community should have some sort of labeling standard, and the new member of the community, plus some guy he managed to convince, say that its goes against his private right to sell as he chooses.

What happens next?

What happens next is that we let the producers do what they want and let the consumers choose what they want. 

Freedom of choice is a two-sides coin. 

The most important single central fact about a free market is that no exchange takes place unless both parties benefit. — Milton Friedman (via learnliberty)

(via thefreelioness)

jeannelefevre:

sugashane:

msgeeky:


sugashane:


NASA is wasting our tax dollars to tell us that they don’t have enough of our tax dollars. Perhaps the next time they are in space, they can discover the natural element called IRONY. 
I have an even better proposal, NASA, what if we eliminated that half a penny you take from our stolen dollar and we allow private industry to invest in you or to build competing models.
Oh yea, we have. 
Space X is replacing NASA as the space vehicle that will travel between Earth and the ISS (International Space Station). Started on private investment and will soon be publically traded. http://en.wikipedia.org/wiki/SpaceX
I love NASA and everything that NASA has done, but their insistence that without NASA there would be no space program is an out right lie that I refuse to support. 


Come on people…. it’s space. We have an endless amount of space to explore and we aren’t!


We have a finite amount of space here on Earth that still has tons of issues. Leave space exploration for the private firms. Let them find, terraform and import all the resources we need. 

Okay you know what
no this is a ton of shit
without NASA there really would not be a fucking space program THEY LITERALLY ARE OUR SPACE PROGRAM
SpaceX is cool and I’m really excited about what it could do but it CANNOT MATCH WHAT NASA HAS ACCOMPLISHED AND ON SUCH A MEAGER BUDGET TOO
PLUS SPACEX IS ONLY FOR LAUNCHING VEHICLES INTO SPACE
YOU’RE FORGETTING THAT PART WHERE WE
YOU KNOW
BUILD TELESCOPES THAT PEER FARTHER INTO THE UNIVERSE THAN WE HAVE ANY CHANCE OF PERSONALLY BEING TO IN THE REMOTE FUTURE
SpaceX is great and I can’t wait to see what it can do but the fact remains that it is a commercial endeavor with commercial interests whereas NASA is a scientific endeavor with no interest in profit
SpaceX cannot at this moment match what NASA is capable of, or at least would be capable of, if not for our government’s idiotic belief that spending more than 90% of the world’s nation’s gross domestic product on bigger weapons.

No need to yell, we’re all adults here. 
I never said NASA adds nothing of value to society. In fact, the exact opposite is what I believe to be true. NASA has done more for this country and the world than all other government programs/departments combined. 
All you have to do is click my #Space #Science and #NASA tags to see that I’m a giant geek and I’m actually fond of the work NASA has done. 
The intent of the original post was to point out the ridiculousness of a government agency using (read: WASTING) tax dollars to lobby and try and convince tax payers to give them more tax dollars. 
As for the private > public, I still stand by that and will always stand by that. If NASA was never funded, a private company would have come along and started their own space program to try and profit on space. And even if space wasn’t directly profitable, a non-profit or a collective of curious and rich group of scientist and private citizens would have emerged.
It’s not like NASA has some sort of monopoly on space exploration. Russia has been there and done that. 
As for NASA spending > Military spending… You know that NASA receives a lot of money via our military budget? NASA was funded due to a military intelligence race with the USSR. If it weren’t for military spending and an arms race with Russia, we’d never have a real reason to fund NASA. We would have probably just stuck with a communications and satellite agency. 
Just give it a decade or two and see what marvels a private, low-regulation space race will produce. Only then can we compare the accomplishments of different approaches of business. 
- Sha

jeannelefevre:

sugashane:

msgeeky:

sugashane:

NASA is wasting our tax dollars to tell us that they don’t have enough of our tax dollars. Perhaps the next time they are in space, they can discover the natural element called IRONY. 

I have an even better proposal, NASA, what if we eliminated that half a penny you take from our stolen dollar and we allow private industry to invest in you or to build competing models.

Oh yea, we have. 

Space X is replacing NASA as the space vehicle that will travel between Earth and the ISS (International Space Station). Started on private investment and will soon be publically traded. http://en.wikipedia.org/wiki/SpaceX

I love NASA and everything that NASA has done, but their insistence that without NASA there would be no space program is an out right lie that I refuse to support. 

Come on people…. it’s space. We have an endless amount of space to explore and we aren’t!

We have a finite amount of space here on Earth that still has tons of issues. Leave space exploration for the private firms. Let them find, terraform and import all the resources we need. 

Okay you know what

no this is a ton of shit

without NASA there really would not be a fucking space program THEY LITERALLY ARE OUR SPACE PROGRAM

SpaceX is cool and I’m really excited about what it could do but it CANNOT MATCH WHAT NASA HAS ACCOMPLISHED AND ON SUCH A MEAGER BUDGET TOO

PLUS SPACEX IS ONLY FOR LAUNCHING VEHICLES INTO SPACE

YOU’RE FORGETTING THAT PART WHERE WE

YOU KNOW

BUILD TELESCOPES THAT PEER FARTHER INTO THE UNIVERSE THAN WE HAVE ANY CHANCE OF PERSONALLY BEING TO IN THE REMOTE FUTURE

SpaceX is great and I can’t wait to see what it can do but the fact remains that it is a commercial endeavor with commercial interests whereas NASA is a scientific endeavor with no interest in profit

SpaceX cannot at this moment match what NASA is capable of, or at least would be capable of, if not for our government’s idiotic belief that spending more than 90% of the world’s nation’s gross domestic product on bigger weapons.

No need to yell, we’re all adults here. 

I never said NASA adds nothing of value to society. In fact, the exact opposite is what I believe to be true. NASA has done more for this country and the world than all other government programs/departments combined. 

All you have to do is click my #Space #Science and #NASA tags to see that I’m a giant geek and I’m actually fond of the work NASA has done. 

The intent of the original post was to point out the ridiculousness of a government agency using (read: WASTING) tax dollars to lobby and try and convince tax payers to give them more tax dollars. 

As for the private > public, I still stand by that and will always stand by that. If NASA was never funded, a private company would have come along and started their own space program to try and profit on space. And even if space wasn’t directly profitable, a non-profit or a collective of curious and rich group of scientist and private citizens would have emerged.

It’s not like NASA has some sort of monopoly on space exploration. Russia has been there and done that. 

As for NASA spending > Military spending… You know that NASA receives a lot of money via our military budget? NASA was funded due to a military intelligence race with the USSR. If it weren’t for military spending and an arms race with Russia, we’d never have a real reason to fund NASA. We would have probably just stuck with a communications and satellite agency. 

Just give it a decade or two and see what marvels a private, low-regulation space race will produce. Only then can we compare the accomplishments of different approaches of business. 

- Sha

(via danganrandpaul)

moralanarchism:

Praxeology - Episode 23 - Monopoly


Praxgirl explains why the concept of monopolies are incompatible with the free market, and actually the result of non-market (government) forces.

The Prax-team is back!

Go learn stuff!

Is there traffic congestion? Ban all cars! Water shortage? Drink less water! Postal deficit? Cut mail deliveries to one a day! Crime in urban areas? Impose curfews! No private supplier could long stay in business if he thus reacted to the wishes of customers. But when government is the supplier, instead of being guided by what the customer wants, it directs him to do with less or do without. While the motto of private enterprise is ‘the customer is always right,’ the slogan of government is ‘the public be damned!’

Murray Rothbard. (via libertarians)

One of my favorite quotes. 

(via libertarians)

hateforthestate:

statistsgonnastate:

Talk dirty economics to me.

mmm… nothings sexier than a little business cycle talk… 

Stop stimulating my monetary policy, you’re giving me a gold standard. 

antigovernmentextremist:

Why Is There Corn in Your Coke?

(via anarcho-alowisney)

laliberty:

I, Pencil: The Movie

How the market, not central planning, drives industry. 

moralanarchism:

Hurricane Sandy and Gas Lines


Dr. Robert P. Murphy explains that it was the government, not Hurricane Sandy, that caused gas lines in New York and New Jersey. For more see:
http://consultingbyrpm.com/blog/2012/11/econ-101-works-price-controls-cause-g…