Saturday, April 16, 2005

Is it bigger than a breadbox?

Who is, or what is the "market"? Before we can learn or debate about it, we must first learn what it is. The easiest starting point is to think about what would happen if we all quit buying anything with our money; that would kill the "market". Why? Because free-markets serve the purpose of satisfying everyone's wants with a limited amount of resources. For instance, while I'm hunting a job through college, I might be willing to work for the store in the mall paying $6.50 an hour. But the man with an engineering license who just got fired, and is used to making
over $100,00 a year, might not be willing to work at the store for $6.50. So instead he finds a out of state employer who desperately needs an engineer; so ultimately 4 wants have been satisfied: 1)my want of the job at the mall, 2)the store at the mall who wanted a willing worker,
3)the jobless engineer who wanted a job in his field, and 3)The out of state employer who hired the engineer. So as this shows, the "market" consists of satisfying as many people's wants as is possible with the limited amount of resources we have on this earth.