Comments on: Economics in a rational world. http://stephenmonrad.com/blog/economicsidea/economics-in-a-rational-world/ The blog is about alternative economics and the book I am writing about my economic ideas. Mon, 12 Apr 2010 04:35:30 -0700 http://wordpress.org/?v=2.8.6 hourly 1 By: Mark Proffitt http://stephenmonrad.com/blog/economicsidea/economics-in-a-rational-world/comment-page-1/#comment-3983 Mark Proffitt Mon, 12 Apr 2010 04:35:30 +0000 http://stephenmonrad.com/blog/?p=580#comment-3983 The instability you are describing is the result of an artificial condition of scarcity. If everyone only has just what they need then there will be panics. If people can store excess for later use then they can ride out the temporary shortage, this is what equalizes the fluctuation. Excess capacity is a requirement of any living system. This requirement comes from the basics laws of thermodynamics. If the differences were to be equalized all motion, and thus life, would stop. So any living system must have the ability to collect and store excess for later use. Furthermore, not everyone has the same levels of desire for pie. In fact those levels of desire change for a person from moment to moment and situation. You motivations for pie is gone after you have eaten. And you are happy to pay $4 for a piece of pie at a restaurant when you are having a night out even though you could buy an entire pie for $4 at the super market. The instability you are describing is the result of an artificial condition of scarcity. If everyone only has just what they need then there will be panics. If people can store excess for later use then they can ride out the temporary shortage, this is what equalizes the fluctuation.

Excess capacity is a requirement of any living system. This requirement comes from the basics laws of thermodynamics. If the differences were to be equalized all motion, and thus life, would stop. So any living system must have the ability to collect and store excess for later use.

Furthermore, not everyone has the same levels of desire for pie. In fact those levels of desire change for a person from moment to moment and situation. You motivations for pie is gone after you have eaten. And you are happy to pay $4 for a piece of pie at a restaurant when you are having a night out even though you could buy an entire pie for $4 at the super market.

]]> By: Unexpected market instability!!! http://stephenmonrad.com/blog/economicsidea/economics-in-a-rational-world/comment-page-1/#comment-3071 Unexpected market instability!!! Fri, 27 Nov 2009 01:54:33 +0000 http://stephenmonrad.com/blog/?p=580#comment-3071 [...] I have been describing a very simple Apple Pie world starting with this post. [...] [...] I have been describing a very simple Apple Pie world starting with this post. [...]

]]> By: Decisions in a simple world. http://stephenmonrad.com/blog/economicsidea/economics-in-a-rational-world/comment-page-1/#comment-3065 Decisions in a simple world. Thu, 26 Nov 2009 01:54:59 +0000 http://stephenmonrad.com/blog/?p=580#comment-3065 [...] is a follow up post to my last post on economics in a simple [...] [...] is a follow up post to my last post on economics in a simple [...]

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