capitalism

Out of context: Reply #30

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  • drgss0

    There is a famous economist, Joseph Stiglitz, who studied why in some countries the free market regulates itself more or less ok, but in other countries doesn't regulate anything at all.

    He proved through mathematical models that a free market can not regulate itself if the players have unequal information, that is, when some knows more than others. A free market economy can work only on one crucial condition, that there is 100% full transparency of information about the transactions and all of its participants.

    But that's only a mathematical assumption, which doesn't meet reality, in the same way the definition of "perfect competition" assumes an infinite number of participants which are all equal in size.

    Scam products are an example. Sort of like when someone can sell the stupidest garbage possible through a skillful advertising ,given that people are not well-educated, and haven't learned from childhood that capitalists eat shit, and that advertisers are the most heinous of all low-life animals that are ought to be killed.


    Foot detox pads, which change color because of a chemical reaction with your feet, not because theres something actually being detoxed. In a free market where prices are formed by supply and demand, assuming 100% transparent information both ways, the price of foot detox pads should be zero.

    Why do these products exist? If you're going to say this is because of government regulation, you're a clinical idiot.

    • he's talking about ""imperfect information" as an element of "market failure"lowimpakt
    • or informational asymmetry - http://en.wikipedia.…lowimpakt
    • yeahdrgss
    • In most countries, accessing crucial info and advantage points is what makes the successful entrepreneur.Corvo2
    • Excellent points drgssukit
    • DIE, FOOT DETOX PADS, DIE!janne76

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