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> A stocks worth is determined by supply and demand That's a tautology. It's like saying the price is the price.

• IncRnd 4y ago
  > That's a tautology. It's like saying the price is the price. That's silly. Your quote was incomplete and selective.
• mejutoco 4y ago
  This was a novel idea, at some point. For the stock it is a tautology, but for generally determining the worth it is a deep idea. It requires buying into a point of view of this model and, like all models, it is a (useful) approximation. If one accepts that the worth of something is the price that supply and demand establish, there is no room for workers being underpaid (or overpaid), according to this model. They are paid exactly what the market determines (so what they are worth). Of course this is extremely simplistic, but you get the idea. Funny, however, how this often touted as self-evident does not stop people from saying x profession earns too much, while the same time advocating for the market as the ultimate solution to all our problems.
  • ummonk 4y ago
    Ehh, we have pretty good policy levers to alter the supply of labor for a given profession.
    • mejutoco 4y ago
      We can have policy levers for anything. What I am saying is that under the market model supply and demand determine the worth of something. Under that logic, nothing can be overvalued or undervalued. Of course that model is too simplistic.
  • geysersam 4y ago
    That's not what I meant. The price is whatever the market pays. That's the definition, nobody disagrees. The value is a different question. As you point out. In our time, claiming those are the same (or even that they are meaningfully related) borders on fanaticism.