1 4 How Economies Can Be Organized

  • September 8, 2020

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Economic System

This loss of freedom and happiness is the opportunity cost of coercion. By producing items of value to others, people will in turn help themselves.

These laws of supply and demand work in a cycle to control prices and keep them from getting too high or too low. The antitrust lawsuit against Microsoft is one way that the government has tried to promote competition. Supporters of Microsoft say that forcing Microsoft to allow companies to bundle arch-rival Netscape’s web browser with Microsoft Windows is not unlike making Coca-Cola include a can of Pepsi in each six-pack it sells. Karl Marx, German philosopher, economist, and revolutionary, laid the ideological groundwork for modern socialism and communism.

Decisions on mitigation of impacts on ecosystems have to account for this link between ecological and social resilience. dynamics that resemble the morphological dynamics of natural systems, such as rivers and watersheds. as places and points of interchanges, or as patents or other publications. In all human societies, ‘commodity’ expresses a product’s dual property in terms of its ‘use value’ and its ‘exchange value’, as we noted in the last chapter.

Knowledge as a ‘corpus’ of publications is codified through patent, journal or library references. Knowledge as embodied or materialized capability is codified through audit and other forms of assessment. Knowledge as both corpus and capability is exchanged through trading networks or enacted through working practices. Knowledge continues to flow through the landscape networks and across its surfaces. In a capitalist system prices are determined by how many products there are and how many people want them. Then prices will rise once more, but only as long as demand is high.