A Quote by John Kenneth Galbraith
In the market economy the price that is offered is counted upon to produce the result that is sought.
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Over the past three decades, markets and market thinking have been reaching into spheres of life traditionally governed by non-market norms. As a result, we've drifted from having a market economy to becoming a market society.
Clearly the price considered most likely by the market is the true current price: if the market judged otherwise, it would quote not this price, but another price higher or lower.
There is abundant proof that the opening of our ports always tends to raise the price of foreign corn to the price in the English market, and not to sink the price of British corn to the price in the continental market.
Good managements produce a good average market price, and bad managements produce bad market prices.
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.
The first principle of the market economy is that it is comprised of many small buyers and sellers, which implies a substantial degree of equity. Another fundamental market principle is that costs are internalized in the producer's price.
In a free market capitalist system, 'price signals' are everything. Prices are determined by buyers and sellers in the free market, and these prices are broadcast from the exchanges, reaching all corners of the economy - where they are used to transact business.
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.
What has changed in 40 years? It’s very simple: 40 years ago there was a market economy. Today there is a market society – today everything, including ethics, has a price.
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 an unmolested market economy - one where all dealings are consensual - the 'allocation' of wealth and income is the result of transactions.
Having seen a non-market economy, I suddenly understood much better what I liked about a market economy.
Yes, I think India's economy always has been a mixed economy, and by Western standards we are much more of a market economy than a public sector-driven economy.
If you increase the number of rockets you build and you buy, then it's the scale of the economy, the price is going to come down. It may not come down in order of magnitude, but if several commercial ventures start being successful and there becomes a bigger market for these rockets, the price will naturally come down a bit. That's why I think Excalibur Almaz, we're a little bit unique in that we don't look at our so-called competition with disdain, we want them to succeed and it needs to have more than one player. Even if we are successful, we couldn't handle the entire market ourselves.
Economists may not know much. But we know one thing very well: how to produce surpluses and shortages. Do you want a surplus? Have the government legislate a minimum price that is above the price that would otherwise prevail. That is what we have done at one time or another to produce surpluses of wheat, of sugar, of butter, of many other commodities. Do you want a shortage? Have the government legislate a maximum price that is below the price that would otherwise prevail.
The reality is that business and investment spending are the true leading indicators of the economy and the stock market. If you want to know where the stock market is headed, forget about consumer spending and retail sales figures. Look to business spending, price inflation, interest rates, and productivity gains.
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