The market is organic and the systems of socialism and communism fail to understand this. Why is the market organic? Well it seems rather obvious upon examination, the people are the market, not companies.
In my business, I’ve only ever sold anything to another person. I’ve never managed to sell anything to a business, to a building or to an agency. There is always another live, breathing and feeling person on the other end of the transaction. Thus, the market is organic because the deal is between two people.
What about computer systems, online purchasing and other seemingly impersonal systems of buying? Well, someone set all the triggers, parameters and marketing tools in place to attracted another person, still organic.
As Adam Smith describes in The Wealth of Nations, the primary driver for economic growth is division of labor. This is still a true concept today and is only gaining strength with the advances brought to you by that lovely little miracle, the microchip. Read Dan Sullivan’s, The Great Crossover, for a fundamental understanding of how the microchip is transforming the world.
The question of division of labor is the classic math mind-bender. It often goes something like this:
If Suzie can plant a garden in 10 hours and Jimmy and Sally can do it in 3 hours, how long does it take for all of them to plant the garden together if it rains on Thursday? What? I can’t tell you how many times I’ve relived the nightmare of grade school math with my children. Somehow we always figure it out.
This is really a serious issue, and the question above does not have enough information to solve it. The market on the other hand is very efficient, and always has enough information to solve the problem. Materials, goods and services are snapped up in rapid fashion when the market is left alone to operate organically.
Even in the economic miracle of China, fueled largely by the microchip, as the leaders were “planning” the economy, their strategy transformed to capitalistic forces within a controlled social structure. I personally believe China will transform once again very soon because we are now 3 generations away from the original communists and the grandchildren often pick up the cause of previous generations. So, the Chinese let go of controlling much of the supply and demand because they too know the market is organic.
In more detail, the market will figure out what the best way to do things is. (And this does not depend on what the definition of the word is, is.) Machinery, computer systems and new methods of operation are the tools used to create an ever more efficient system.
Fear: The market will become so efficient there won’t be jobs for everyone!
Answer: Never going to happen if the market is left alone to do its thing.
Left alone to operate, there will always be new products, new interests, new fun things to do, greater preparations, more education, more development and increasing interest in hobbies. As long as there are two people on Earth, there is a chance to have a more efficient market.
The greatest example of market driven economic success is America. To those who want to control the market I say, “Leave us alone, we know how to do it!” “We create the jobs when we are able to grow the business!”
I advocate the Free Enterprise System, Capitalism and market driven economic policy.
God Bless You and God Bless America!
