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Old 08-11-2019, 11:45 AM
DrDeth is online now
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Join Date: Mar 2001
Location: San Jose
Posts: 42,485
Quote:
Originally Posted by Kobal2 View Post
I don't think he's saying market forces don't exist. To me (and I expect, to him too, but my crystal ball's in the shop so he'll have to confirm), "the invisible hand" is shorthand for the idea that market forces, in and of themselves, always reach an optimum distribution where everybody's happy, or at least relatively equally unhappy.
And that's bollocks.
Exactly. Market forces certainly are there but consumers and producers make stupid decisions.

I was consulting with the rent Control board during one of the great dot-com booms in Silicon Valley. Rents were skyrocketing. Some landlords doubled their rents- and were getting it. The Landlord members of the board (not the tenant members, the landlords) went out to meet with some of them and tell them how foolish that was, that the boom was temporary, and pricing out your good long term tenants in favor or temporarily rich short term tenants was a bad idea. Especially as many of them couldnt afford the new rent once the boom stopped- or bought a house with boom $.