A Quote by Adam Smith
A monopoly granted either to an individual or to a trading company has the same effect as a secret in trade or manufactures. The monopolists, by keeping the market constantly understocked, by never fully supplying the effectual demand, sell their commodities much above the natural price, and raise their emoluments, whether they consist in wages or profit, greatly above their natural rate.
Related Quotes
It is the natural effect of improvement, however, to diminish gradually the real price of almost all manufactures.
LABOUR, like all other things which are purchased and sold, and which may be increased or diminished in quantity, has its natural and its market price. The natural price of labour is that price which is necessary to enable the labourers, on with another, to subsist and to perpetuate their race, without either increase or diminution.
If a company is not a monopoly, then the law assumes market competition can restrain the company's actions. No problem. If a monopoly exists, but the monopoly does not engage in acts designed to destroy competition, then we can assume that it earned and is keeping its monopoly the pro-consumer way: by out-innovating its competitors.
Unemployment is 'involuntary' when the price is above its market clearing level. Workers are unemployed because jobs are not available at the prevailing wages, period. The only recourse is to either expand the number of jobs or somehow lower the wage.
The investor is neither smart not richer when he buys in an advancing market and the market continues to rise. That is true even when he cashes in a goodly profit, unless either (a) he is definitely through with buying stocks an unlikely story or (b) he is determined to reinvest only at considerably lower levels. In a continuous program no market profit is fully realized until the later reinvestment has actually taken place, and the true measure of the trading profit is the difference between the previous selling level and the new buying level.
Natural Magick is taken to be nothing else, but the chief power of all the natural Sciences; which therefore they call the top and perfection of Natural Philosophy, and which is indeed the active part of the same; which by the assistance of natural forces and faculties, through their mutual & opportune application, performs those things that are above Human Reason.
When profit diminishes, merchants are very apt to complain that trade decays; though the diminution of profit is the natural effect of its prosperity, or of a greater stock being employed in it than before.
Whereas a competitive firm must sell at the market price, a monopoly owns its market, so it can set its own prices. Since it has no competition, it produces at the quantity and price combination that maximizes its profits.
In short, what the living wage is really about is not living standards, or even economics, but morality. Its advocates are basically opposed to the idea that wages are a market price-determined by supply and demand, the same as the price of apples or coal. And it is for that reason, rather than the practical details, that the broader political movement of which the demand for a living wage is the leading edge is ultimately doomed to failure: For the amorality of the market economy is part of its essence, and cannot be legislated away.
Derivative trading with mark-to-market accounting degenerates into mark-to-model. Two firms make a big derivative trade and the accountants on both sides show a large profit from the same trade.
There is no worse material poverty than one that does not allow for earning one’s bread and deprives one of the dignity of work. Youth unemployment, informality, and the lack of labor rights are not inevitable; they are the result of a previous social option, of an economic system that puts profit above man; if the profit is economic, to put it above humanity or above man, is the effect of a disposable culture that considers the human being in himself as a consumer good, which can be used and then discarded.
I imagine a school system that recognizes learning is natural, that a love of learning is normal, and that real learning is passionate learning. A school curriculum that values questions above answers...creativity above fact regurgitation...individuality above conformity.. and excellence above standardized performance..... And we must reject all notions of 'reform' that serve up more of the same: more testing, more 'standards', more uniformity, more conformity, more bureaucracy.
The natural price, therefore, is, as it were, the central price, to which the prices of all commodities are continually gravitating.
A very poor man may be said in some sense to have a demand for a coach and six; he might like to have it; but his demand is not an effectual demand, as the commodity can never be brought to market in order to satisfy it.
Life can be lived at a remove. You trade in futures, and then you trade in derivatives of futures. Banks make more money trading derivatives than they do trading actual commodities.
In the market economy the worker sells his services as other people sell their commodities. The employer is not the employee's lord. He is simply the buyer of services which he must purchase at their market price.
Related Authors
Alan Greenspan Quotes
American
Economist
Benjamin Graham Quotes
American
Economist
Friedrich August von Hayek Quotes
Austrian
Economist
John Kenneth Galbraith Quotes
American
Economist
John Maynard Keynes Quotes
English
Economist
Joseph Stiglitz Quotes
American
Economist
Ludwig von Mises Quotes
Austrian
Economist
Milton Friedman Quotes
American
Economist
Muhammad Yunus Quotes
Bangladeshi
Economist
Murray Rothbard Quotes
American
Economist
Paul Craig Roberts Quotes
American
Economist
Paul Krugman Quotes
American
Economist
Richard Thaler Quotes
American
Economist
Robert Reich Quotes
American
Economist
Thomas Sowell Quotes
American
Economist
Walter E. Williams Quotes
American
Economist