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No, actually. The fact people won't pay for X is exactly how you know that people don't want X. So a prolonged, less than cost of production, price for somethin
by LatteLazy 3y ago
No, actually. The fact people won't pay for X is exactly how you know that people don't want X. So a prolonged, less than cost of production, price for something DOES mean you should stop making it. That's sort of the whole point of prices...
This sometimes forces us to confront hard truths (people want perfume and hamburgers and NFTs, not ever larger amounts of steel). But that's actually the big strength of capitalism: people get what they want not what people think they SHOULD want...
- mistrial9 3y ago> won't pay for X is exactly how you know that people don't want X this is not true in many cases -- a commodification of ordinary (and valuable) things drives a price down, with motivated agents seeking "bargains" or plunder. Secondly, kindness is mistaken for weakness. Abundance with a gift economy and manners is replaced with rent seeking with punishment for offenders, and constant constraints imposed to increase price. The market is not making the most public goods, it is making the most effective jails and most addictive products as a natural result of profit maximization and command-and-control exchanges.
- ceejayoz 3y ago> The fact people won't pay for X is exactly how you know that people don't want X. "makes just $1000 a year" just means people are paying roughly the cost of production, unless you meant it to be revenue instead of profit. There are plenty of things people won't pay for that they still want/need. I couldn't pay for a heart transplant without insurance, even if I'd die without.