• peoplebeproblems@midwest.social
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    4 months ago

    And I suspect you might even suggest the only real aspect of economics boils down to supply vs demand regardless of what the thing in supply or demand is?

    • Banana@sh.itjust.works
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      4 months ago

      Definitely not. The rules behind supply and demand hinge on some extremely flimsy assumptions, namely:

      • that people always act in their own best interest (they fucking don’t)
      • that people can actually choose not to buy the product

      For things like food, housing, medicine, etc. People don’t get the luxury of voting with their wallets, and this is why the free market cannot allocate resources effectively.

      Just because I went to school for economics does not mean I am a free market capitalist. I’m definitely not.

      • peoplebeproblems@midwest.social
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        4 months ago

        Ah ok, I see the flaw in my thinking.

        Things that are always in demand don’t drive a price solely based on supply, and since people don’t act in their own best interest the actual demand of something can’t be a useful way to determine the value of a thing.

        So that sort of says to me that with a truly free market economy, it would be just as impossible to model future prices because of the inherent unpredictability of humans.