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Too often, too many useful idiots are overawed by hired explicators of closed system notions, such as the so-called law of supply and demand. That law would apply IF people, businesses, and nations truly operated within closed systems, so that each change would always produce a conserved effect. However, economic traders do NOT intelligibly operate within closed systems. See Economic Theory / Supply and Demand, by Gerhard Adam.
Too often, too many useful idiots are overawed by hired explicators of closed system notions, such as the so-called law of supply and demand. That law would apply IF people, businesses, and nations truly operated within closed systems, so that each change would always produce a conserved effect. However, economic traders do NOT intelligibly operate within closed systems. See Economic Theory / Supply and Demand, by Gerhard Adam.
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Rather, the system is always subject to being grossly changed and manipulated by people, businesses, and nations that consciously choose to exploit the system, to create artificial, psychological expectations and pressures, followed up with artificial relief valves for exploiting the faith, trust, and credit of naive, good-faith believers. The system is NOT exclusively material or economical. Rather, the interfunctioning of perspectives of qualitative consciousness is at least on a par with, perhaps even superior to, the byproduce of substantively quantitative interactions. It is by convincing dupes that the so-called law of supply and demand necessarily implicates that we should promote free trade that exploiters are fond of pressurizing bubbles and then manipulating and releasing escape valves at times opportune for maximizing contrived profits.
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Suppose a closed system with a finite number of extra houses for sale. If the sellers got together to run a pattern of increasing the sales prices, the appearance of inflating value may well spur speculators. In that case, it would not be the limited supply that was driving the increased demand, but psychological, monopolistic, crony manipulation. Equilibrium is not based only on quantitative pricing, but also on qualitiative value, which is based partly on skilled manipulations of subjective perceptions.
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In a time of conglomerate ownership of mass-mesmerizing media, the notion that buyers and sellers usually operate objectively, free from psychological manipulation by rampant gang-style trading corporatists, is quaint. For an individual freely to offer his wares in a crony market, without starting or joining his own gang, is to volunteer to be cannibalized. A deer surrounded by jackals is not engaging in free trade. For a representative republic to open wide its borders and trade to emissaries of despotism is to volunteer to be internally infested by traitors and to have its free-thinking middle class consumed and wasted.
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The demand side is not independent. It acquires wherewithal from the supply side. What happens when American labor doesn't produce products, yet continues to buy them, by borrowing? If a home nation exports its industry and well paying jobs, it will not produce supplies enough to enable its people to continue to finance and purchase at sustainable levels, even if more products are priced lower on account of having been produced by foreign labor. This is because the economic-evolutionary system is not entirely bit-based or closed. Rather, trading groups and nations tend to compete to have their laborers and groups benefit at the relative expense of their trading victims. Corporate moving of labor costs outside the system opens the system and skews the rules, so the law of supply and demand no longer holds for individuals duped to trust in it. Rather, manipulaters and hedgers create and exploit bubbles, greased by coaching victim nations to keep the faith and elect political proponents of "free trade." The concept of a marketplace based on supply and demand becomes less helpful to individual, good-faith dealers the more the system is not closed. The system tends then to be open to abuse by crony jackals prone to tell deer that free trade is always the best policy!
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A system that stubbornly tries to rationalize economics based purely on objective competition, that fails to establish checks against pack-cronyism, will eventually sacrifice itself to false-altruistic, totalitarian mindsets.
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It appears some of Romney's money men are deep in this GM-China Motors fiasco. We seem to be alternating between crony socialism and crony corporatism. Once America is hollowed out by crony cannibals, what will be left to defend?
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2 comments:
Aside from statism and corporatism, I suspect there abides a ground for the conservation of liberty. Populations easily lose that ground, either by tipping towards totalitarian statism or towards borderless, crony corporatism. Liberty will not be preserved by alternatively joining with state federalists versus disloyal corportists. Not when corrupt corporatists have acquired dominant control over most institutions of social significance. Preserving liberty requires its own awakening movement, and that is not happening. Instead, we are continuing to be pushed and pulled by jokers and clowns. How do I know? Because the blogosphere consists mainly in name calling, accompanied by cherry-picked pretenses of reasoning. Where is there a viable movement, funded or not, that seeks to ascertain, illuminate, or establish that which is needed to define or conserve liberty? Look at what's become of our banking, media, academia, and our institutions of law, medicine, science, and enterprise. Because there is no such movement, the predominant direction remains the same: masses overawed by means of persuasion tightenened by contending packs of hierarchical elites, operating under banners of statism or corporatism, each conniving for advantage by engaging in hollow, snow-job promises and name-calling ridicule. Where is there an elite thinker or audience that is not in effect serving either crony statists or crony corporatists? Is the solution to statism really as simple as freeing corporatism, with no thought given to how to check crony corporatism that is a-loyal to all nations?
From A.T. -- Re: "Could it be that the moral relativism engendered by the doctrine of multiculturalism so beloved by our media and academic class has robbed us of the ability to recognize right from wrong"
Well, we have always been challenged in recognizing right from wrong. Now, multiculturalism has become a way of celebrating that inability. Indeed, many people now advocate that there is no such thing as right or wrong --- even as they advocate the annihilating contradiction that we "should" honor people of every persuasion. There obviously abides moral purposefulness, but we have ventured so far into deep woods that we have lost sight. Of course we are electing people with no functioning moral compass! We are also celebrating and promoting them and only them! Relying on short-sighted wannas and lacking any intelligible moral compass, many people come to make a virtue of short-term selfishness, won by joining gangs, cults, and corporates of choice. Gangs tend to promote the most internally loyal and externally ruthless. Good people are ridiculed, not promoted. This moral blindness seems now to permeate nearly every institution. Read Predator Nation.
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