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it's fairly depressing to me how no one seems to grasp the concept of price. money isn't magical, it's a way of accounting for different people's preferences W
by nazgulnarsil 17y ago
it's fairly depressing to me how no one seems to grasp the concept of price. money isn't magical, it's a way of accounting for different people's preferences WRT the resources they have available to them. trying to fix a price by decree is a fundamentally stupid notion.
- jacoblyles 17y agoOn the other hand, college is an industry, like healthcare, where demand is highly inelastic due to incentives involving third-party payments. It is also an industry, like healthcare, where price inflation has far outstripped inflation in general. Is there an example of an industry where government-created demand accounts for a major portion of consumer spending and there is not rampant price inflation? I am open to the possibility that there could be other causal factors here, but the a priori logic is pretty compelling.
- nazgulnarsil 17y agoI'm sort of confused by your use of the term "on the other hand". I'm in complete agreement with Schiff (and economists in general) when talking about the effects of price distortions from tax/subsidy (two sides of the same coin).
- earl 17y agoBaumol's disease is a major component -- education is currently measured in hours, so professors tend not to become more productive over time while the rest of society tends to.