Bernd
07/18/2019 (Thu) 13:59:12
No.28076
del
>>28074>If there is less goods on the market than needed some people won't satisfy their needs because they can't no matter how high the prices will go.In the short term high prices stimulate production. In the long term our present state of abundance can be achieved, an impossibility in a planned economy.
>those who buy it because they really don't need it Well, with low prices production will decrease. Consumers have decreasing marginal gains and may not buy the bread at all. But if they want to buy more bread and there is bread then that's a success. That they don't consume it in a way we find proper is our judgement.
>How any of these two solves the problem of shortage and surplus?For one thing, they don't
create the new problems of shortages and surplus introduced by price setting. Impose price controls on a normal market economy and you'll find shortages caused by a problem with that measure itself. This is well documented and understood, it happened with meat and dairy in Germany and it's happening right now in Venezuela with farmers not selling goods because legal prices are too low. It happens in market economies with price controls and planned economies are no better. They won't work just fine. In this regard playing within "capitalism's ruleset" is the wisest thing to do.