lol #Incentives Incentives are the motivation behind why people act. If there is no incentive, or they are too costly in some sector or industry, they will look to profit elsewhere. This process of profit and loss is how the world (that is every human -- even the silly communist who disavows money) operates. The black and red we know in business is just a numerical representation of that functional reality we all live under, and whether or not the business is doing a good job at satisfying peoples preferences. An interventionist state can destroy this process by ruining incentives -- altering what people would be inclined to do or want to do. In fact, all state edicts (even the supposed necessary ones like no murder or no rape are interventionist) are meant to alter incentives in an attempt to make something or some act more costly than it might otherwise be. Except the reality is the edicts and their enforcers do little in the way of examining actual results. Because they might have an intention most of us would agree with, the _actual_ results often dont align with the intent (welfare, monopolized policing (for decentralized emergency response see Peacekeeper), minimum wage, etc). Understanding the process of causation is where the science of economics comes in. Its also why politicians pick and choose the economics (specifically the Keynesian schools of thought) that confirm their biases and also coincidentally grant them more authority. _THIS_ is why you should never trust a politician. They have no incentive to be truthful, honest, or even examine the results of their stupid edicts they pass off as laws. #Agorist
Posted on: Thu, 21 Aug 2014 08:28:13 +0000
Trending Topics
Recently Viewed Topics
© 2015