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> In my mind a "market systems" implicitly includes prices which means there would then be profit and loss. Why does a price necessarily include a profit or a
by ianleeclark 7y ago
> In my mind a "market systems" implicitly includes prices which means there would then be profit and loss.
Why does a price necessarily include a profit or a loss? This is a self-referential belief: my price includes a profit or loss because a prior price includes a profit or loss which would earlier ... etc, etc.
- macspoofing 7y ago>Why does a price necessarily include a profit or a loss It includes a profit or a loss because you need to eat and provide for yourself. If you're making chairs but the cost of materials is larger than what you sell those chairs for, how are you going to provide for your family? If you want to save up for a house or a car, or family vacation, how are you going to do that if you don't sell your chairs with a surplus (i.e. a profit)? A market-based system necessarily implies a profit motive.
- ianleeclark 7y ago> If you're making chairs but the cost of materials is larger than what you sell those chairs for, how are you going to provide for your family? This is the "self-referential" thing I was referring to. You're entering into this thought experiment with a pre-defined conception of how an economic mode of production must operate. You're presupposing the profit motive.
- macspoofing 7y agoFeel free to suggest an alternative. The one that comes to mind is Communism (and its many flavours), and we've seen what a humanitarian and economic disaster that turns out to be.
- ianleeclark 7y agoPolitical economy is a wide field with something for everyone. Consider it a choose your own adventure.
- macspoofing 7y agoRight. So no actual alternative.