In my blog post, The Market is Organic, I shared that the market is organic because the people are the market and well, people are organic not machines. People have emotions, shifting desires and constantly changing needs and wants. There is no way to predict this behavior accurately. The best hope for business leaders is to lead by sound business principles. The best hope for political leaders is to strive to establish the conditions of prosperity, which happen to be the 28 principles detailed in The 5000 Year Leap.
Socialism attempts to place artificial boundaries or conditions on the economy and the people, this is what makes it evil, wrong and in direct contention with Natural Law. For instance, everything is shared by force or everyone gets the same salary. Do you want your brain surgeon getting paid the same as everyone else? I don’t mind if the surgeon gets more for his expertise as he preserves my life. Bottom line is that some work is more valued than other work, so enterprising and talented people pursue that more valued work.
Free markets are driven by the demands of the people in the market. If the people want Pet Rocks, then the market provides them. If the people aren’t happy with a certain cars, then sales slump. Competition and market demands determine who wins and who loses in the Free Market System. If this were not the case here, we would all be driving plain, ugly boxes with no buttons and pretty colors. Attempting to predict this behavior can cause great frustration. The best approach is to ask the people and then design around the response. This asking and designing process is a key to success in the the Free Market.
So, how can we get our minds wrapped around this idea and have a clear vision of how the markets behave? I have an example to share from basic math.
Socialism is like whole numbers, 1, 2, 3… There are a limited number of choices for the math problem. Because the prediction of the market is limited to what the predictor understands, the results are very bad and limited in effectiveness. Take a look and Venezuela’s recent economic progress or Cuba or North Korea for shining examples. This system of “Planned Economies” removes the robustness of the dynamic Free Market.
The Socialist economic planner decides what everyone gets, what they eat and how often they can travel. They even break up families to support their far flung shovel ready jobs.
The Free Market is much more like all the numbers between 0 and 1. How many numbers are their between 0 and 1? The answer: infinite. Like, 0.1, 0.12, 0.123, 0.9568,…. on to and infinite number of choices. This is just like the dynamics of the Free Market, the changes are infinite because the people are always changing and organic decisions or growing/changing decisions happen moment to moment. The likelihood of predicting market behavior is purely random. So, why not allow the market decide? Anyone who believes they can predict the market is faced with the task of predicting the infinite richness of a subject as deep as all the numbers between 0 and 1.
Let the market decide. This is why the wisest leaders say to teach correct principles and let the people govern themselves. Going against this reality is just bad business, bad thinking and bad mojo.
I obviously advocate the Free Enterprise System, The Constituition as originally intended and The United States of America leading the free world to prosperity.
God Bless You and God Bless America!
