Supply, Demand and Plan Coordination

From David L. Prychitko over at The Austrian Economist blog.

Money Quote: "As the negotiated terms of trade -- relative prices -- change, so, too, do the plans of buyers and sellers. Market clearing is of course a case whereby Qd=Qs. But the textbooks rarely, if ever, make the additional interpretation that the current market is fully coordinated among buyers and sellers, that their plans mesh; the textbooks focus on quantities alone. Floors and ceilings, on the other hand, unintentionally create systemic plan discoordination. The supply and demand approach provides a simple explanation of how the institutions of private property rights and free market pricing solve the coordination problem."

It's all about Free Markets and Private Property Rights! Anyone who thinks that "the free markets" and or "capitalism" failed with the latest crash is smoking something. We are not, and have not, been operating in a free market system for eons, if ever, in this country. Not to mention that nowadays its not "Capitalism" we're practicing, it's "Corporatism". Legislation and regulations are all about lobbyist and political donors. Who gives what to whom, or who knows who. Good thing Obama has banned all lobbyist from serving in his administration. Psyche! That promise lasted about 25 seconds. Just like all the promises to televise the health care bill debates live on CSPAN.

Count the times he said it would happen

For further study:


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