What you are advocating is dangerous and would lead to anarchy and war and death. People would be hurt. For example, if a few people got control of the water supply and they could charge whatever they wanted and turn off or turn on the water when they wanted to. In fact, something like this happened when Enron got control of the electric supply and the electricity was turned off at many schools at different times thus disrupting the educational process.
Further without governmental controls on who works in the factories, we could have a return to children working 80 or 90 hours per week.
The United States has had two types of government; today’s socialist government and yesterday’s small government of 1776 which was based on economic freedom and political freedom.
Economics is the allocation of scarce resources to meet insatiable wants. Economics is a social science like sociology and psychology. Economics studies one facet of human behavior, economic behavior. Economics does not give us the answer to all human behavior, however. Surely the terrorists on September 11, 2001 were not motivated by economic behavior!
Scarcity is the key word in the definition of economics. If there were unlimited resources, there would be no economics.
There is no such thing as a free lunch. Someone always pays for “free lunches.” Economics is interesting because economics reads like a detective novel. “Who done it?” Who benefits and who pays?
Adam Smith’s genius was that he recognized the value of voluntary
exchanges. Voluntary exchanges produce a win-win situation. Both
buyers and sellers benefit. The price that they agree upon is the
market price, or the equilibrium price. Adam Smith said that a seller,
seeking only his interests, and through no conscious effort, is led by
an invisible hand to seek the public good.
Milton Friedman postulated his own invisible hand theory. He states
that an individual, seeking only the public good through government
regulation, and through no conscious effort is lead by an invisible hand
to seek the good of the individual. Milton Friedman, in his book, Free to
Choose, states that he has seen the government do little good.
Thomas Jefferson, in his first inaugural address, stated that the role
of government was an umpire, not a participant. Thomas Jefferson’s
political theories and Adam Smith’s economic theories go hand-in-hand.
The market economy means power to the people! Which goods are produced, how they are produced, and whom should get them are determined by you and me.
We vote with our dollars.
Is the market economy fair? Economists cannot define “fair” or “needs.” Give away new cars, and suddenly everyone “needs” a new car!
Incentives matter. Benefits have to exceed costs. Even a thief makes that economic decision.
Employers are constrained by scarce resources just like everyone else. The only way that an employer can get more resources is to bid the resources away from someone else. That is why the supply curve has a positive slope. A manufacturer will only produce more if he can get a higher price.