Market Basics pt. 1

Contrary to current thought (from among others, college-age Americans) about capitalism, the spontaneous order of the market fosters philanthropy. The pricing system is based on voluntary exchange and mutual benefit occurs because everyone is better off. This is freedom. Outside interference with the market system will reduce freedom. Most people do not think of how the market involves enormous coordination with no central planner. Cooperation brings efficiency and innovation. Innovation takes X (raw materials) and makes it more than X. Profit is the incentive to innovate and creates things others want.

Consumer demand and the will to serve and please others leads to philanthropy. Acting to one’s own plan actually allows us to bless others from our excess. The market is moral because it is based on merit and it requires you to think of others.

Leave a Reply

Your email address will not be published. Required fields are marked *