The Pickering Post
Friday, 22nd March 2019

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ARE THE LEFT RIGHT PART 4

Come on Down, the Price is Right

Harry Richardson

Harry Richardson is a long-time student of Islam and author of best seller, "the Story Of Mohammed - Islam Unveiled', http://thestoryofmohammed.blogspot.com.au

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Continued from part 3

Got to love special interest groups. They are constantly telling us that prices are wrong. One week, the price of petrol is too high, its holding back the economy. Next week the price of milk is too low, its driving farmers out of business.

Capitalism can’t be trusted they tell us. Capitalists are gouging us to make excess profits. We need the man with the gun (Government) to step in and set the price correctly.

So, what is the right price and how do we find out?

In a right wing, capitalist society, prices are set by the market. That’s because in a capitalist society, everyone has their property rights protected.

If you want someone’s property, you have to bargain for it. What that means is that you need to offer that person something of value. If you want a cabbage, try offering the farmer a cauliflower, or a litre of milk.

If you don’t have anything else, you can offer your labour. Maybe you can wash their car, mow their lawn, or pick cabbages for them.



In modern societies, people specialise. Cabbage farmers usually only produce cabbages. That means that the farmer will end up with far more cabbages than he needs.

The farmer is happy about this because he knows he can trade his surplus cabbages for other things.

The question is, how does he determine the price?

Let’s say the cabbage farmer wants some cauliflowers. To get the cauliflowers, he needs to trade some cabbages for them.

He naturally wants the most cauliflower he can get for his cabbages. Like all people – and all animals – he is greedy.

Of course, the cauliflower farmer wants the most cabbages for his cauliflowers too. He is also greedy.

So, with both sides wanting the best deal, they have to negotiate to somewhere in the middle that will suit them both.


 The price must be one where both of them feel that they have gained something from the trade. The cabbage farmer has hundreds of cabbages which aren’t particularly useful to him.

He goes to the market with his cabbages and comes back with milk, cauliflower, bread, butter and so forth.

These things are far more useful than just cabbages, so he has gained from the transaction. The cauliflower farmer and the dairy farmer have gained too.

But what determines the final price of a cabbage. Well, the cabbage farmer is as greedy as the rest of us. He wants the highest price he can get. Likewise, all sane people will ask the highest price they can get when they sell their house or their labour.

Margaret Thatcher told us that “Greed is good.” She was wrong of course. Greed isn’t good. It is just that Capitalism uses our greed to drive production and efficiency – which are good.



What keeps a lid on the prices cabbage farmers can charge, is competition. We won’t be able to sell our house for a million dollars if the next-door neighbour is selling an identical house for half that amount.

A petrol station owner can’t sell gas at two bucks a litre when you can buy it down the road for a dollar.

Prices then, in a capitalist society tend to be fairly stable due to competition and are regulated by supply and demand - providing producers do not collude to create a monopoly. In a Capitalist society this is highly illegal and is governed by Anti-Trust laws.

Occasionally however, a price may suddenly skyrocket. This is invariably caused by an imbalance in the supply and demand. Perhaps there has been an outbreak of the lesser spotted cabbage weevil.

Maybe, a TV cooking program has previewed a fabulous new cabbage recipe and cabbage has become super fashionable.

Whatever the reason, prices jump and cabbage buyers will be keen to see lower prices – but how do we bring those prices down? Well, the short answer is, that we don’t need to.


Fuel prices are generally stable – until the man with the gun decides to jack them right up.


What Adam Smith called “the invisible hand of the market” will take over and miraculously fix the problem for us.

How this works is simple but devastatingly effective.

The first thing that happens when cabbage prices rise, is that less people will buy cabbages. They will buy brussels sprouts or broccoli instead.

Those who do buy cabbage, will buy smaller portions. They may buy just a half, or a quarter of a cabbage instead of a whole one. If prices skyrocket, people may just buy very small portions to use as a garnish.



Cabbage can become a luxury, rather like lobster or caviar. This has the effect of reducing demand for cabbages which reduces or caps prices. It is important to note however, that despite reduced supply, cabbage is still available at a higher price. If you really need it, fresh cabbage is still there for you.

The other amazing thing that high prices do, is to bring new suppliers into the market. Local farmers will see high cabbage prices at market and immediately make plans to plant more cabbages.

Businessmen will look to distant places with surplus cheap cabbages and truck them in to the local area to profit from the difference in price. This increased supply will of course put rapid, downward pressure on cabbage prices.



So, ironically, the cure for high prices in a Capitalist society – is high prices.

When the opposite happens, the same forces kick in. Low prices cause people to eat larger portions of cabbage (to a point) and to find new uses for cabbage, such as feeding them to cows or chickens to produce beef or eggs.

It also causes farmers to give up on growing cabbages and start growing more expensive and profitable foods which are in shorter supply.

This process balances supply and demand perfectly through the mechanism of price which acts like a voluntary rationing system. It may seem harsh on consumers in times of shortage, and harsh on producers in times of surplus.

Yet the incredible upshot of this is that in a Capitalist society, the shops are always full of cabbages, cucumbers, potatoes and anything else you might want to eat. All you have to do to procure some of these goods; is to roll up your sleeves and produce something of value that you can exchange for them.



And if that sounds like a bad deal – just wait till you hear the alternative.





Comments

Here's Levin and an accurate description of mainstream media: https://www.youtube.com/watch?v=CXC31FYetIw

NEW ARTICLE ... NEW ARTICLE ...

Flysa... I was inspired by your prose and thought I should give it a go. How's this?

Shorten is planning a stunt
He really does have some front
He thinks he’s cool
Many think he’s a tool
And the rest of think he’s a c--t

I did so implore “Oh, dear Paul
Please don’t let this great forum fall
Ban Granny post-haste
For I am now braced
For words that will see my withdrawal”

New pose tup.

Said Abbott I was a real dope,
Saying the Paris accord had no hope,
My past was in error,
Cee o two is the terror,
And in that I agree with the Pope.

Then Scomo decreed just like Caesar,
While Shorten let go a breezer,
If Milo will pray,
At the mosque every day,
Then he will be granted a visa.

Here`s a great great break down of why certain Dems are going full bore after Trumpy......... Jerry Naddler and Robert Mueller in particular................................If you`re on the RIGHT, Then listen and enjoy....................

https://www.youtube.com/watch?v=5BGmE8pqIGM

ABC reports the Humpback Whale population is doubling every 7 years. But wait for it global warming has the species under threat of extinction. They just never miss an opportunity to tell everyone that the planet is doomed. I don't know how all the sad miserable greenies manage to face another day, seeing how bad things are.

Julie Bishop will claim for herself everything that worked out, thanks to her, of course. But, oh my, any time it didn't, it's somebody else's fault. Namely, one or more of her male colleagues. And then it's straight to the Gender Community Chest for a Get Out of Jail Free card.

"Ms Bishop joined former Liberal MP and now independent Julia Banks, Labor MP Linda Burney, and Greens senator Sarah Hanson-Young, for the Leading While Female panel discussion as part of All About Women."

... in her true element there.

USA Democrat " How many gun related deaths would have to occur for you as a gun owner to change your stance and give up your gun?"

USA Republican " How many rapes would have to occur before you agree to get your dick cut off?"

From Bolt's,

"Julie Bishop has been humiliated in the preselection for her replacement in her seat of Curtin. She backed Erin Watson-Lynn, who once called herself a "non-Liberal voter". She urged preselectors to choose a Leftist like herself. She attacked Senator Mathias Cormann, who backed conservative Celia Hammond. Result: Watson-Lynn 1, Hammond 51."

Excellent result.

"A Sydney lawyer and former anti-drugs campaigner has been disqualified from the profession after being found guilty of drug supply charges.

Ugo Parente, was convicted of three counts of supplying prohibited drugs and sentenced to four years jail in 2016 after a traffic stop found 100 MDMA tablets and cash in his vehicle. A later search of his house found more drugs.

Parente, had been a criminal lawyer at Marsdens Law Group in Liverpool after being admitted in 2006."

... criminal lawyer, indeed.

Coming here lately feels like I'm raking over the coals looking for a few embers of what was once a beacon!........is that the agenda Harry......let it die a slow death?

An interesting take on who's pulling AOC's strings.. The pyscho is a puppet just like Hussein...https://youtu.be/1h5iv6sECGU

Today's Sunday Tele reported that Glad is promising that schools in NSW will be open from 7am to 6 pm to help parents with child-minding. Don't any adults in this country give a damn about the poor kids anymore?

If the economy requires both parents be in the paid workforce and to outsource the rearing of their babies and young children to to strangers, then there's something wrong with the economy. It hasn't helped that young people of both sexes are relentlessly brainwashed by cultural marxism's most useful idiots ever - feminists - to believe that men and women are interchangeable. They're not. In any sane society they are complementary.

It's heartening that social media are trying to censor the big thumbs down to the new movie featuring a female Captain Marvel. Reality hurts.

The Nurse may be on the ward but the lunatics are still at large. I pop in from time to time but too many anti semites, trouble makers and idiots on the loose for my liking. The articles here deserve better. I used to check in every day about 6 times day. I now come in and leave because there are so many inane posts from the serial offenders that the heart has gone out of the comment section. Unpopular or controversial posts are one thing. But leaving the filth of Hyslop is inexplicable. I don 't get it.

I knew it was a bad move and I was going to regret it but I went and brought KFC for dinner tonight. Well god fuck me dead it was absolutely fucking disgusting. I am at a loss finding words to describe just how shit it was. Even one of Hitler's starving Jews wouldn't go back. How the fuck can it still be in business?

'Pretty disturbing': AGL pulls toxic waste product off the market

The NSW environment watchdog has launched an investigation into revelations a coal waste product sold by AGL to "various markets" has tested positive for elevated levels of toxic substances including chromium, cadmium and copper.

It comes as environmentalists and unions expressed "alarm" at the energy giant's announcement on Thursday that it would indefinitely suspend sales of the coal ash from its Bayswater and Liddell power stations in the Hunter Valley as a precaution.
Coal ash is the residue that remains after coal is burned to generate electricity.

The waste product is either disposed of at on-site dams or sold and reused, mainly as road base or in concrete products.

"The EPA considers this to be a serious matter and has launched a full investigation," an EPA spokesperson said.