So what happens when Walmart prices a good higher then consumers are willing to pay? Who bears the cost of this error? What happens when government allocates more resources on a project then they should, who bears the cost of that error? How is it you don’t understand the functional/mechanical differences between the two alternatives.
When walmart places a bad price they pay the consequences and bear the cost, when they find a good price, they gain the rewards. This gain, benefit(profit) tells walmart that they should continue performing this action.
Government on the other hand does not have this feedback mechanism. There is no immediate way to tell whether they are doing good, or bad. They have no idea when the arbitrary price(tax) they make is too high, or too low for example. This is why I stated earlier that a government can only correctly calculate when it’s done by accident. As they are oblivious to consumer response and feedback. They have no mechanism to measure citizen’s satisfaction rating, where walmart on the other hand does.
What good would what be?
This is the most confused thing I have read in a while.
Lets say Hypothetically speaking we are neighbors. Lets assume for obvious reasons that I refuse to submit into your servitude as a personal slave. Am I somehow compelling you to sow and harvest your own crops? Am I compelling you, against your will to do your own work? Simply because I refuse to sow and harvest your crops for you. How on earth am I compelling you simply because I refuse to be your slave?
You must be deeply confused. Whos gun is placed at whos head. Think about it…
Like?
Explain yourself.
So you are effectively denying the functionality of the price mechanism? You don’t think it serves a purpose and that Austrian’s are just speaking jibberish w hen they mention pricing and calculation?
- How many scarce resources should be allocated (Whats in supply)
- Whom should recieve the product of these resources? (Demand, whos willign to pay the most based on their ordinal subjective preferences)
- Please clarify. are you saying that prices cannot shed light into these two factors(Supply/demand)?
- Production effeciency and innovation?
- So you don’t think competition spurs efficiency and innovation?