4 ms·
The first paragraph is only true if you believe the supply is fixed (ie the elasticity on the extensive margin is zero). This is often a good way to teach econo
by ls612 3y ago
The first paragraph is only true if you believe the supply is fixed (ie the elasticity on the extensive margin is zero). This is often a good way to teach economics because much of the math remains the same in a production environment but when you apply it in an environment it isn’t designed for it leads to fallacies like this one. Free markets and capitalism work precisely because it isn’t a zero sum game like this.
And your last two paragraphs are nonsensical, you are comparing the right to eat at a top end restaurant with the right to not have your kids kidnapped it’s downright laughable that you’d see such a moral equivalence.