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In the absence of a law structuring the sale, money is the best proxy we have for importance. The law, in a system of democratic governance, is a big asterisk
by droopyEyelids 7y ago
In the absence of a law structuring the sale, money is the best proxy we have for importance.
The law, in a system of democratic governance, is a big asterisk to that sentence! It's important too. But aside from that, price signaling is our most 'objective' way to determine importance.
- dwohnitmok 7y ago> In the absence of a law structuring the sale, money is the best proxy we have for importance. I strongly disagree under these circumstances. Prices are one benchmark of importance/value and are often useful as such. But Goodhart's Law comes here in full force. In particular I would argue that when unusual things happen, the usual benchmarks and proxies we have deserve extra scrutiny, since often any discrepancy between a measure and what is being measured is magnified in abnormal times. And right now times are quite abnormal. Now is exactly when traditional benchmarks of value should be re-evaluated to see if they are still useful under present circumstances.
- adrianN 7y agoYou can have a democratic system of government and still ration goods during a crisis. Democracy and economic policy are orthogonal things.