![Bitcoin Accepted Here [by freeborn]](https://i0.wp.com/farm6.static.flickr.com/5315/5897030158_49659b54ef_m.jpg "Bitcoin Accepted Here [by freeborn]")
Bitcoin Accepted Here [by freeborn] (Photo credit: Adam Crowe)
Archive for the ‘Econ. 101’ category
Bitcoin = The Unstoppable Ingenuity Of Individuals
July 30, 2013Specialization And Trade Create Wealth
July 24, 2013In our previous post I briefly touched on specialization and trade. Civilization advances through specialization and trade not just from the stand point of creating more wealth, but also from the stand point of creating a more peaceful world because of the cooperate involved in trade. This short video from LearnLiberty.org, featuring Art Carden, is a very good explanation of these concepts.
Specialization and trade utilize scarce resources, time, labor, and capital as efficiently as possible. Labor, time, capital, and resources are freed up, because of specialization and trade, and can now be used for other activities that couldn’t have been attempted before these scarce resources were freed up. These new activities may prove to be productive or they may not. The good news is that in a free market they will be allowed to succeed or fail depending on their ability to produce more value than the cost of the production.
For a more in-depth analysis of this subject read, People Can Just Get Along, by Robert P. Murphy, at mises.org.
Does Government Create Productive Jobs?
June 10, 2013In order for our economy to operate at it’s optimum level, the arbitrary interventions by Government have to stop. Government can’t create productive jobs, they can only create make work jobs. These jobs are consuming our most scarce resource, labor. Let the market decide what labor is the most productive, don’t allow the Government to make decisions that are yours alone to make. Government doesn’t have enough knowledge to make the right decision on what the consumer wants.
Watch this short video by Steve Horwitz at Learnliberty.org. as he talks about productive and non productive jobs.
Walter E. Williams, Voluntary vs Involuntary Exchange, or Seduction vs. Rape.
May 8, 2013Walter E. Williams explains, as only he can, the difference between voluntary and involuntary relationships and exchanges. Voluntary exchanges are positive sum games where both parties in the exchange benefit, otherwise the exchange wouldn’t take place. Involuntary exchanges are zero sum games where force is used to benefit one side at the expense of the other.
Related article, Walter E. Williams Talks About The Role Of Profits And Losses, at austrianaddict.com.
Related article, Compassion Versus Reality, by Walter E. Williams, at creators.com.
Consumption Depletes What Has Been Produced And Saved.
April 26, 2013CONSUMPTION, PRODUCTION, SAVING
Repetition is the best way to learn something. So lets take another look at consumption, production, and savings. When you consume you destroy, deplete, dissipate, devour, decrease, reduce, exhaust, use up, the supply of. When you produce you create, cause, provide, make, generate, bring forth, the supply of. When you save you accumulate, accrue, invest, reserve, compile, amass, build up the supply of. Production is the creation of wealth which can either be saved and invested for future production, or depleted or destroyed by present consumption.
PRODUCTION PROCESS
We become wealthier when we produce goods at a rate above what we consume. (more…)
Politician’s “Affordable” Ideas, Must Obey Economic Forces.
April 22, 2013
(Photo credit: Wikipedia)
AFFORDABLE ENERGY?
Market forces are more powerful than the hoped for results of central planners. The most recent example of this is the boom in oil and natural gas production, created by hydraulic fracturing [ fracking],which is taking place on private land in spite of Government policies. Our politicians shut down some Government lands to oil exploration, and made the process of getting permits for exploration on remaining lands more time-consuming [costlier]. They used their power, and our tax dollars, to promote and invest in, “green energy”. Green energy was going to create new jobs and lead (more…)
Spontaneous Order = Free Market Economy.
April 12, 2013
Spontaneous Order (Photo credit: KAZVorpal)
SPONTANEOUS ORDER CREATES COMPLEXITY.
For us to understand how free market capitalism works, we have to understand the concept of spontaneous order. In this video below titled, “The Lawless Streets of Hanoi, Vietnam”, the man filming the video doesn’t even understand what he is watching. He says,”There’s no traffic lights to be found and everybody pretty much does what they want……It’s mad chaos.” He’s used to seeing traffic centrally planned by signs, signals, or traffic cops, and because of this bias toward centrally planned order, he is incapable of seeing the complex order that is created by individuals voluntarily cooperating. (more…)
Electric Car Sales Crash Into Economic Reality.
April 2, 2013
Who Killed the Electric Car? (Photo credit: Wikipedia)
THE REALITY OF THE CONSUMER.
Electric car sales prove once again that consumer decisions in the market trump the President’s, and Government’s, attempt to force their utopian desires on people. Just because a person with power decrees that certain thing’s should be produced, doesn’t mean that they’ll be magically sold once they enter the market. Many an entrepreneur’s great ideas have turned to failure because, in the market, the consumer has veto power over every brilliant idea, and the “special” brilliance of Government planners is no different.
THE REALITY OF PRICES AND COSTS.
There are three ways that Government can guarantee that electric cars will be purchased. (more…)
Why Socialism Won’t Work? Human Nature.
March 28, 2013
From each according to his ability, to each according to his need (Photo credit: Wikipedia)
Socialism is defined as Government control of the means of production, instead of private ownership, (property rights). Socialism goes against human nature as you can read about in this article, “Does Socialism Work? A Classroom Experiment”, by Dan Mitchell at danielmitchell@wordpress.com. Human beings are self-interested and will work harder for their own benefit than they’ll work for the benefit of others. The human nature of a child born in today’s world hasn’t changed, it is the same as a child born in prehistoric times. A child has to be taught to share, selfishness is natural to him, and even when he becomes a civilized member of society, self-interest is still his default position. In the article mentioned above, (more…)
AUSTRIAN ECONOMICS ADDICT 