UNRAVELING THE MYSTIQUE OF MARKETS
Too many of our citizens fail to grasp the essentials of a free society: for example, they expect to go to work each day, to be paid ‘top dollar;’ others expect to receive that ‘top dollar’ via a government stipend for doing nothing at all. Yet it is clear that is not how a “free society” functions; one is paid based upon his “output,” i.e. his physical and/or intellectual performance. Frederic Bastiat (1802-1850) brought those basic ideas to the table, calling them Economic Harmonies: they blend an individual’s wants with his willingness to exert effort to achieve them, and the degree of satisfaction he can expect to receive.
These principles cannot be separated, or one regarded of less importance than another.
Success in economic ventures undertaken is measured by the degree of satisfaction achieved by the producers of various products and their consumers, i.e, their physical and intellectual well-being. That satisfaction cannot be achieved by idleness, a trait productive of poverty. One can readily see the alignment of objectives for capitalists, employers and workers: while the former seek a return for their capital in new and uncertain ventures, the employer seeks profitability for creating or marketing his products, while the worker looks to a salary upon which his well-being rests.
Each government effort to intercede in those ventures with controls and mandates distorts that final balance of effort known to provide a sufficient supply to meet consumer demand; it increases costs, causing final selling prices to rise, reducing demand and forcing price reductions below that of profitability in order to sell what becomes excessive supply.
Yet, that essential interconnectedness of those stages of production seems to have been severed today, by a political movement determined to create division between those economic elements through the advancement of a social and economic philosophy diametrically opposed….the destruction of that free market the capitalist, producer and worker jointly serve: Government becomes the medium for that collapse.
An element of political destructiveness for that balance can be observed with the “Occupy Wall Street” demonstrations on the streets of New York and in other cities, as an economically uneducated and misguided element of our nation demonstrates for descent into the system of “redistributing” private assets demanded by a modern communist society: Government then joins with the financial elite to control world markets…..monopoly and dictatorship are the result, not freedom and democracy.
These sit-ins represent a “crisis strategy,” a method of communication suggesting the existence of a form of “victimology” imbedded in free markets. Continuing with such an effort will certainly destroy our economy, by causing ever greater dependency upon the failed political processes of government. One can see just such a collapse within the European Union, particularly Greece and Italy, where the morality of individual freedom has succumbed to an immorality imbedded in rigid State structures.