@Nature's Infinite WELLth And Rose's son

You should look at some of his older speeches - he is very much like his father in those

I noticed this as well.

Books are usually just one sentence stretched into 300+ pages.

@@SovereignStatesman brilliant quote lol writing that down

David ain't dead yet, he has time to surpass :P Good luck David that's like dunking over Michael Jordan.

@@kylewatson5133 True, it's not impossible that David would surpass his father in the subject but it highly improbable. Milton was one of a kind. :)

@@Atanu Milton was a minarchist, David is an anarchist so he already surpassed his father in having a moral philosophy.

​@Elias Håkansson Okay well they both at least considered anarchy, but David took it a step further and chose it.

Haha my man

Lol

phd in google studies

Economics is a science just as serious as physics.

@@libertarianschizo8566 'Serious' sure. But not the same.

Well you probably like anarchy better since David is an anarchist and Milton was a minarchist.

There is a lot more to it than this lmao. Did you even watch the video?

That's the PR narrative they tell you. Now look at the facts. What does an economy do in war time? Free markets on steroids? No of course not, they go to massive central planning. How did the US beat the Soviets in the space race? By doing what they did but better, a massive state project called the Apollo project. Manhattan project the same. How did the US compete with Europe just after it was established? Massive state interference and central planning. Same goes for most capitalist economies. Also innovation: contrary what most think they mostly come from the state sector (a lot of DARPA) before some enterprise commercializes it. The market is mostly good at acquiring information about the right price but in today's debt base economy that's also highly obscured. Oh and the difference between socialism and capitalism isn't necessarily whether the economy is centrally planned or not.

Can judges lose their jobs for their decisions? Do they have a point system that ranks their successes and failures? Is there a threshold in that system that makes them lose their job, or even go to jail, or get some economic punishment for their scores going low or being reduced? If not, it's not a very useful thing to say that "their reputation was damaged" because it has no consequence in their livelihoods whatsoever

No, that would be at a cost to me to help you. 😉

We can't calculate it because we don't have the information needed to solve it. The point is that the market solves it through prices. Prices, if they aren't manipulated by governments, monopolies, etc, will allocate resources efficiently. Free markets allocate resources efficiently.

@@Tyler-hf4uc Ok. But if we don't know how the market calculate prices how do we know that they "allocate resources efficiently"?

@@jorgemachado5317 markets allocate efficiently because they work like this: imagine that there is some good that is available for 5 people (and suppose 5 of this good are ready to be bought). They all value this good differently. Suppose the price of this good is $2. And everyone values it more than $2. What happens? Everybody buys it. The person selling this realizes, “wow, I don't know why, but people really like this product!" So he raises the price to $5 per item. Now some people buy it, but others don't. That means, say, he has 2 of the item leftover. For the sake of the argument, suppose he would be better off if he lowers the price slightly, sells out, and makes more money. Now he sells it at $4.50. it sells out, he's made better off and presumably the people are made better off because now they have something that they value. This is a situation where markets have cleared and everyone has been made better off. Let's take that exact scenario but let's have 100 people. The other 95 only value that good at under $2 (whereas our original people still value it between $2-4.50). So they never buy it because the price is greater than their expected value. Markets have still worked efficiently because the people that valued the good the most have received it!

​@@Tyler-hf4uc I think you missed my point completely. I don't disagree that people pay the price they think worth paying to buy a product. That's not my question. My question is how could we know the price is setted correctly by the market if we don't really know how to calculate those prices. I haven't any doubt people will act according to their interest. My problem is that to say that the market has allocated the resources correctly means that we know what resources should be allocated. Otherwise all we can say is that the market has allocated the resources. If it's well allocated or not we can't possibly know. Otherwise we would calculate ourself. Do you see what i mean?

@@jorgemachado5317 I know exactly what you mean and that's what I'm telling you. The fact that consumers and suppliers are maximizing their expected benefits IS HOW we know that resources are being allocated efficiently. We don't have the knowledge to solve the systems of mathematical equations, but we do know that at market equilibrium, everyone is maximizing their expected benefit (in the absence of monopolies, regulations, govt intervention, etc)

IQ man. and genetics play a big role. his father had... a Nobel prize

He did not get smart. The very first breath he took was as a (exceptional) smart individual much like his father. It’s mostly genetic.

fish oil

He's a physicist.

What?

@@pergrinepi3130 lawd=laws

@@johnathanvale8634 yeah I'm just don't get what you're saying

@@pergrinepi3130 price theory=facts Theory arent facts Price theory needs to be called price princple

@@johnathanvale8634 you do the scientific definition of theory isn't the same as the everyday defentiton it doesn't mean its not a fact

Lol I really do love them too.

jesus the ultimate jew

I like David, but I don’t care about the group of people he belongs to because I’m not a collectivist. Loving an ethnicity seems just as silly as hating one.

Free markets always know best. Not all markets because different interventions from the government exist.

@@bane3991 It's a bit like saying a perfect super conductor conduct perfectly. That's nice an all, but it cannot exist.

@rolyars What do you mean? Like what flaws do you see in the free market for example?

@@bane3991 well it's not trivial. First you need to define what you mean by flaw and what kind of outcome you desire. But generally the things ascribed to a free market like best efficiency and innovation cannot be supported empirically. There are all kinds of abstract reasons why that is, which you can investigate with abstract theories like game theory. I think one problem a system like a market has is that always regresses to cronyism without any oversight.

@Kinickylj None of those examples defunct Marx's Law of Value. Obviously markets determine prices. But why is a Computer 50-100 times more expensive than a Pizza? The oil field example is explained by Ricardo's Theory of Differential Rent. The law of value applies to the aggregate of all commodities in a market. It does not apply to individual commodities, so a diamond found deep underground is worth just as much as a diamond found in a field. But imagine if all diamond fields were depleted and the only way to find diamonds was to dig deep underground. Would the market value of diamonds remain the same? Pearl hunters dive anywhere from 12 to 40 meters to find pearl producing mollusks. Pearls go for around $300-1500 each. If pearls just washed up onto the beach, do you think they would still be worth $300-1500 each? The Law of Value determines the center around which prices gravitate. Value is an Emergent property of all commodities in a market. It is not a property of the individual units of commodities. If you are familiar with Physics, you know that Temperature is a measurable property of a collection of gas. But temperature tells you nothing about the behavior of individual gas molecules. The temperature of a gas system is homogeneous, even though the kinetic energy of the individual molecules are heterogeneous. Some molecules have high kinetic energy, while others have low kinetic energy.

@@codyedwards5827 ok you are a little confused and allow me to clear things up a little bit. First of all, Karl Marx's law of value is defined as a resource allocation principle. It was not a theory of commodity pricing as many Marxists assume it is. The law of value simply put is the social necessary labor to produce a commodity. Secondly, you are confusing the real issue at hand. The reason why the labor theory of value is ignored by economists is because it implies production costs as being the only cost that is responsible for exchange value and assumes utility. What Carl Menger and Bohm-bawerk's writings did was show that there is another cost which is now called opportunity cost of the marginal utility of the commodity with respect to the marginal utility of other commodities. Marx did not analyze marginal utility he was analyzing TOTAL utility. Diamonds are intrinsically less useful than water, but the amount of water that needs to be supplied to each individual exceeds the marginal ammount of diamonds that each individual "needs". Therefore it's marginal exchange value is higher than water. Furthermore, what Bohm-bawerk did was describe the consumption rate of the good as a factor of its marginal utility value. In this sense value is defined as price. Since apples are consumed immediately and diamonds are not consumed immediately there is a longer satisfaction of "needs" given by the diamond. The repurchasing rate of an apple is higher than a diamond therefore labor will direct itself more in the area of producing food. In other words a commodity with a higher rate of repurchase is cheaper than those that have a lower rate of purchase. Also the marginalist revolution took into account the intensity of labor rather than just total social necessary labor. Again Marx confused total social necessary labor time with marginal labor. If it takes 1,000 workers to produces 100,000 apples in a year and 100 workers to produce 100,000lbs of lumber in a year .... what is the marginal utility of labor between the two? Well it definitely is larger than the apple producers and the rate at which people by lumber is slower in so far as apples and other crops are concerned. The population size of labor varies within different sectors and capital accumulation varies also. So in fact the intensity of labor in very cheap priced commodities is higher than very expensive commodities by marginal ammounts. Total labor time disregards marginal labor units and the consumption rate of the commodity. Finally, what Bohm-bawerk showed was that Marx's labor theory of value did not take into account intertemporal exchange rates of labor and capital. That means, capitalists have accumulated past labor time and savings in order to reserve land and capital to advance it to their workers at an interest rate. Past labor advanced to present laborers is more valuable and rated at a premium because future satisfactions are cheaper dollar for dollar than present satisfactions. If I say I will give you an apple for remuneration today or a week from now certainly you will take remuneration for today's work in present time. But if I promise I will pay you with 10 apples a week from now you may delay gratification for a larger portion of future satisfactions. If it takes the capitalist 5 years to accumulate savings, land, and capital he in effect advances the means of production and removes the waiting time from the workers in exchange for future goods and they exchange their present labor for the remuneration of present goods. If the capitalist didn't accumulate land, savings, and capital the laborers would have to wait 5 years to do it themselves. Capitalists do not exploit the workers of their "full value" they simply advance workers the ability to work now rather than 5 years from now.

@@codyedwards5827 if something became harder to get, theyd become more expensive...thats obvious. probably more expensive than usual difficult to obtain version if the commodity as they become scarce. and obviously if things are easier to produce its cheaper...idk whats your point? that people arent dumb? the person who invests capital incurs risk. lets not think in terms of currency, but something more tangible like wheat. me and my family farms and decides to trade our wheat for labor to build some houses. other smarty pants can do the same, but what if we all try to rip them off? collude! well some other farmers will take all the labor by giving them more wheat. maybe we can kill that farmer...anyways, that was our wheat and we ought to get what they promised in exchange. now we have homes and some people can live in them in exchange for working on our farm. things would be easier with some form of currency, so people did many millennia ago.

@@codyedwards5827 idk what i rly mean, but those group of guys mightve not built those homes without my (others) wheat. i grow my wheat to build these homes and people rent those homes to work and eat from my farm. they may also buy the home to live or otherwise. in quite small and very simple terms my real estate empire starting to grow, but no doubt many benefitted

cost is they worked, but they get paid. a crime? just use my faculties for free and get what u want out of it? the head of a corporation and fall anytime and so can the corporation itself and many of its subsidiaries. idk exactly what u propose, but lets assume vaguely a authoritarian regime...a member will stay so long he does the correct thing, not to be confused with the right thing. the correct thing keeps him in the regime as a head or councils determines what is correct, so the regime is slow to react as its members must be firstly loyal before right. even if given a lot of autonomy, who can say the person is the best or even fit for the job? a group of workers perhaps, but they need some leadership. they could choose to have a board of councils type thing, but no doubt the very brightest would soon shine, so that person will naturally take the role of leader. i used to go toss word salads first, but i find the smell test a faster indicator of things

But that's not the point. The capitalist enterprise, as you call it, responds to market incentives. Nobody is telling that enterprise to be in the business of doing whatever it is doing (in fact, it is not obligated to do business).

Yes the issue with authoritarian systems is scaling firms are very small which allows more efficient control

u want decisions generally from the ppl closest to the information, so going too far up doesnt work

just like he said in the vid....

Yes, business entities are formed to avoid transaction costs as Friedman's colleague Coase explained in his article "the nature of the firm".

moonrakingmilksop seriously man. Contemporary monetary economics is a fucking joke through and through. It doesnt matter how logically thorough you are in examining and designing a corrupted system if its corrupted from the outset. Are you familiar with the concept of a resource-based economy?

'The vast majority in the first world suffer growing poverty while third world suffers severely lowered safety standards, inhumane treatment of workers, environmental costs, has he missed this?' A common belief, but false. Poverty rates have been declining for decades, overall and as a percentage of the total population. I think the level is around 10% currently, and was higher than 50% before 1970. Capitalism in China has lifted literally 100's of millions out of extreme poverty - much like we managed to do during the industrial revolution. Poverty is cured by knowledge. Freedom promotes the growth of knowledge.

Thank you for your reply. I admit that my language is stronger than it needs to be. Thank you for your input. I am commenting here for the purpose of discussion and I appreciate your input. I have checked the poverty rate on 2 sites, one document at the world bank as well as one document from the united nations. The numbers you offer appear to reflect the world bank's site. The united nation's numbers vary but don't appear to me to be significantly different. You are quite right, knowledge has its very real benefits. However, the numbers on either site do not have any reference point. Both sites claim that the number of people who live on less than $1.9 a day (wb) and $2 (un) a day have dropped since 1990 or 1970 respectively. These are not clearly stated in relative dollars. This would give me some idea how inflation has affected the evaluation of money in various times, indicate the buying power difference between 1990 or 1970 to now. I am not able yet to find this. Have you seen this kind of comparison? That would turn the numbers to at least a beginning of knowledge. It would also be helpful, if you have access to further data, how the poverty line is defined in purchasing power. I will look further myself and leave note here if I find these reference points.

I am interested in discussion and information. I would be interested in any information you have to offer. I will admit that my language was needlessly strong. If poverty rates are dropping in first and third would countries, I am not able to find this information where the poverty line in either first or third world countries is made in comparative dollars or purchasing power over time. I would be grateful for this. I am very interested in changes in rates of buying power to population in the first world middle class and lower income, as well as concentration of wealth. As to safety standards, humane treatment and environmental costs, I would again be grateful for even a lead on where to find information regarding this. And one last thing, would you please define what you mean by "marxist" and "neo-communist"? There seems an enormous range of what people mean by these terms. I don't personally use either term to define myself.

MrGuvnah a resource-based economy is based solely on empirical data and literally nothing else. It is not derivative of marxism in any way. Marx had an intuition that social stratification and socioeconomic inequality was socially detrimental. Just because that ended up as empirically validated later doesnt make that acknowledgement and anyone who makes it a marxist

Assuming you missed the last 5 minutes of the video....

Life would be better without all of those things.

At what university are you a professor of economics?

@@anarchic_ramblings I fail to understand why you ask this question. Please point towards the flaw of my argument so I can learn from you. Thanks.

You didn't provide any argument. You just provided some statements. A statement =/= an argument.

Yes, the government ATTEMPTS to manage resources, Friedman's argument is not that they don't try, but that they do it badly. The pencil argument is an illustration of the complexities of the market and how government lack information to allocate resources efficiently. That the government interferes in said resource distribution does not discount said information problem. Friedman is not against "the rule of law", you are presenting a straw man argument. Friedman is simply raising the possibility that the current "rule of law" is not the most efficient solution (mostly because its a monopoly). He is simply proposing an alternative. I don't know what you mean by "mid developed countries", but there is a general trend that the more economically "free" a country is the better of it tends to be that can't be ignored. "Many businesses fail to exist because business do not have access to basic infrastructure" I don't know what that is supposed to imply, I mean you can't have a "beam me up scooty" delivery service without beaming technology which sadly does not exit yet. But that does not mean that if the technology ever becomes feasible that it would have to be provided by government. There is no economic law that says that a enterprising individual can not build a road. And if a business depends on a possible road whose resources are more efficiently allocated elsewhere (opportunity cost), then it should not exist anyway. Point being, government subsidizing a business through infrastructure building is inefficient.

Emperor Picard I think my point was related to your point. I made it clear that I am not going into that system cannot exist without market interventions. All i was referring that the gentleman in the video is talking as such that USA or other western countries have fully non interventionist economies. With my examples I was implying how much government intervenes even in the so called free world and there is no such thing as free economy. I also agree less government intervention could lead to better outcome but only after a certain stage of development. Finally on your point on developing countries, my example, also related to second para here, was that a government led projects can encourage more output which was never existed. Coming back to a developing country, lets say Village A and Village B are seperated by a lake and if the two villages were connected increase in output would be 100 fold hence beneficial for all residents. In a free world, how would you suggest this bridge should be built. Who should fund it and what would be the pricing structure. Solution to this scenario could provide an answer to the problem of government intervention. Thanks.