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Pastimes : Austrian Economics, a lens on everyday reality -- Ignore unavailable to you. Want to Upgrade?

To: Wildstar who wrote (186)	4/3/2003 7:20:05 PM
From: Don Lloyd	Read Replies (2) \| Respond to of 445

Wildstar, I have trouble with this conclusion. Part of the Austrian viewpoint is that if deduction doesn't match reality, then the deduction is wrong. I intuitively believe that the market does indeed allocate goods "efficiently." I think that this conclusion has to be reached somehow from the basic axioms of human action; I just don't know how. I don't remember ever making an economic argument dealing with efficiency, so I don't know what the definition of 'economic efficiency' is, or even if one exists. In engineering, talking about efficiency, for example in the conversion of one form of energy to another, makes sense, but I'll reserve judgment on 'economic efficiency'. Further, if the conclusion cannot be reached, then why not place price caps on plywood during hurricanes? Price caps prevent higher prices from attracting additional supply to meet demand and result in shortages. Where did you get 25%? The same place that company stock and government money come from, thin air. -g- Regards, Don