What Do Prices “Know That You Don’t?”
08 Jan 2018 Leave a comment
in applied price theory, economics of information, entrepreneurship Tags: market process, The meaning of competition
Voltaire on the 1734 London Stock Exchange:
31 Oct 2016 Leave a comment
in discrimination, economic history, entrepreneurship, financial economics, labour economics Tags: customer discrimination, market process, The meaning of competition
.@NZGreens do not understand business: minimum wage for contractors version
25 Aug 2016 Leave a comment
in applied price theory, applied welfare economics, economics of regulation, industrial organisation, labour economics, politics - New Zealand, poverty and inequality, survivor principle Tags: expressive voting, market process, New Zealand Greens, price signals, rational irrationality, The meaning of competition
The Greens are most upset that a Labour party private members bill to specify a minimum wage for contractors was voted down by one vote in parliament yesterday.
If you earn than the minimum wage as a contractor, that is a signal wrapped in an incentive. Your poor hourly earnings is a signal to you that maybe you should get out of that contracting business and go back to being an employee where you will be paid at least the minimum wage.
Many small businesses make no profits at all in the first year or so as they build the business. The founders of the business get by on savings, which they anticipated when they drew up their business plan. No one expects a business to make an immediate profit or always be profitable.
Contractors are entrepreneurs chancing their arm. They need crisp signals about whether they are succeeding, failing or could succeed if they try harder or do something different. A minimum wage for contractors masks those important market signals of success and failure.
If your dream of owning your own business is not even paying the minimum wage, maybe it is time to get out of the contracting business.
What If There Were No Prices? Railroad Thought Experiment
15 May 2016 Leave a comment
in applied price theory, applied welfare economics, Austrian economics, comparative institutional analysis, constitutional political economy, entrepreneurship Tags: market process
If the market process was by human design
03 Apr 2016 Leave a comment
in Austrian economics, F.A. Hayek Tags: market process
HT:Mark Perry.
What is the only source of profit?
02 Dec 2015 Leave a comment
in applied price theory, Austrian economics, entrepreneurship, history of economic thought, industrial organisation, Ludwig von Mises, survivor principle Tags: competition as a discovery procedure, consumer sovereignty, entrepreneurial alertness, market process, market selection, profit and loss, The meaning of competition
How labour and other markets work
18 Nov 2015 Leave a comment
in applied price theory, Austrian economics, entrepreneurship, human capital, industrial organisation, labour economics, labour supply, Milton Friedman, minimum wage, occupational choice, poverty and inequality, survivor principle, unions Tags: market process, The meaning of competition
FA Hayek on competition as a discovery procedure
11 Oct 2015 Leave a comment
in applied price theory, Austrian economics, entrepreneurship, F.A. Hayek Tags: competition is a discovery procedure, creative destruction, entrepreneurial alertness, market process, market selection, The meaning of competition
Hayek’s use of knowledge in society
02 Oct 2015 Leave a comment
in applied price theory, economics of information, entrepreneurship, F.A. Hayek, industrial organisation, survivor principle Tags: competition as a discovery procedure, entrepreneurial alertness, market process, The meaning of competition
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