Do some people not trust markets simply because they don’t understand what a market actually is?

We are headed the wrong direction on this curve.
From a few years ago. Sadly we are headed the wrong direction on the curve these days.

Of course some people who clearly do not understand what makes a market, nor why the market mechanism drives down costs and increases quality of life for everyday people will argue that markets are evil because, well, because they’ve been told all their lives that markets are evil.

Somehow, for some people business is a bad thing. All those material goods you enjoy? The iPhones, cars, flat screen TVs, luxuries that years ago could not be had at any price by anyone but which are now enjoyed by many of the poorest in our society? Those things were envisioned by business people. They became reality because someone made these things happen.

The computer on which you are reading this article would not exist if it were not for competitive businesses driving down the cost of technology to the point where you and I can afford to own a machine which brings all the world’s knowledge right to our fingertips. Government would never have made this happen.

Still some have an almost religious faith – and in some cases it actually is a religious faith – in government.

Some are reliant on government in one way or another and so must keep the faith. What are they going to do, just throw up their hands after a life working for the government or around government and start over in the private sector just because it’s more just? I don’t think so. But people who do not draw a pay check or welfare check from the tax payer’s bank account should know better. Free markets and free prices make the world a much better place.

Many of us, and I know a number of these people, would not be alive today if it were not for the innovation driven by that supposedly evil profit motive. There’s a good chance statistically that you might not be alive either.

In the attached article the author is right in his review of John Stossel’s book. People dislike markets mostly out of ignorance.

Here’s hoping people become more informed. And soon.

(From The Tribune Papers)

Lots of folks, even those in high stations, don’t know what an economy is. In simple terms, it is the production, trade, and consumption of goods and services in a particular region. It is not, as Stossel notes, “a machine that needs jump starting. The economy is people who have objectives they want to achieve.”

Missing in many modern discussions of economics is the concept of trade. Stossel illustrates this with somebody buying a cup of coffee. Both the buyer and seller say thank you because both acquired something they value more than what they surrendered. If the price weren’t right, the transaction would not occur in a free market. Even anarchists agree coercion, fraud, and theft are aberrations to be dealt with when resorted to in a free market.

Yet, low-information economists like to argue against capitalism. They believe prices are arbitrary, that employers can pay those they hire whatever they demand. They are like the child who thinks money is available in infinite supply. free from the banks; and they continually fall for government’s deceptive claim of creating wealth by printing more money, borrowing, or taxing.

Click here for the article.