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!@#$%! · 02.21.2012, 10:17 AM

hey, thanks! the book i'm reading is 'basic economics' by thomas sowell.

he discusses precisely what you mention: when price controls are abolished people protest, yes, and politicians take every opportunity to take advantage of the situation, but famines end because the rising prices will bring food into the area, provide an incentive to local producers, mobilize the labor force, etc. if prices are kept artificially low, producers and traders lose money and get out of the game.

one semi-hilarious story he tells is about the fall of antwerp to the spaniards. the spaniards had antwerp under siege but antwerp resisted because there were smugglers willing to break the siege and bring food into the city. as the siege intensified and prices rose, there was an edict to curb "price gouging" and stabilize prices-- with harsh penalties for breaking the law (like death and shit like that). the result? the smugglers no longer had the incentive to defy the spaniards and break the siege, food supply dwindled, and antwerp fell.

it's a bit of a simplistic example i know, but he goes into more detail when discussing india-- just too long to quote and a bit hard for me to paraphrase, but basically,in the 1860s, the british colonial government prevented a famine by publishing the prices of rice in different locations so people could go buy it where it was available.

anyway, i think marxism is an important critical tool, yes, but what i'm looking for is workable economic models more than simply alternative ideas-- things that would work in practice. so far it looks like (to paraphrase professor pangloss) we live in the best of all possible worlds--- that is, a mixed economy with free markets and some government intervention. but again, this book argues that political intervention actually mucks things up and distorts the economy. e.g., politicians get elected in the short term in order to keep bus prices low, they do that, prices aren't enough to support good bus maintenance and replacement, buses break down in the next term when politician has moved on and the successor gets the blame. etc.

but still, the usual discussion is capitalism vs. socialism, or fee enterprise vs. the state, but there are alternative models like anarcho-syndicalism we don't hear enough about.

02.21.2012, 10:17 AM	#97
!@#$%! invito al cielo Join Date: Mar 2006 Location: mars attacks Posts: 42,465	hey, thanks! the book i'm reading is 'basic economics' by thomas sowell. he discusses precisely what you mention: when price controls are abolished people protest, yes, and politicians take every opportunity to take advantage of the situation, but famines end because the rising prices will bring food into the area, provide an incentive to local producers, mobilize the labor force, etc. if prices are kept artificially low, producers and traders lose money and get out of the game. one semi-hilarious story he tells is about the fall of antwerp to the spaniards. the spaniards had antwerp under siege but antwerp resisted because there were smugglers willing to break the siege and bring food into the city. as the siege intensified and prices rose, there was an edict to curb "price gouging" and stabilize prices-- with harsh penalties for breaking the law (like death and shit like that). the result? the smugglers no longer had the incentive to defy the spaniards and break the siege, food supply dwindled, and antwerp fell. it's a bit of a simplistic example i know, but he goes into more detail when discussing india-- just too long to quote and a bit hard for me to paraphrase, but basically,in the 1860s, the british colonial government prevented a famine by publishing the prices of rice in different locations so people could go buy it where it was available. anyway, i think marxism is an important critical tool, yes, but what i'm looking for is workable economic models more than simply alternative ideas-- things that would work in practice. so far it looks like (to paraphrase professor pangloss) we live in the best of all possible worlds--- that is, a mixed economy with free markets and some government intervention. but again, this book argues that political intervention actually mucks things up and distorts the economy. e.g., politicians get elected in the short term in order to keep bus prices low, they do that, prices aren't enough to support good bus maintenance and replacement, buses break down in the next term when politician has moved on and the successor gets the blame. etc. but still, the usual discussion is capitalism vs. socialism, or fee enterprise vs. the state, but there are alternative models like anarcho-syndicalism we don't hear enough about.
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