El Twatto Di Tutti Twatti

But let’s also be clear that the stereotype of capitalism that so many want to believe in is as simplistic, and as wrong, as that of socialism I have noted above. That stereotype is widely taught by economists as if it is true.

It assumes that all markets are ‘perfect’. That means there are masses of firms engaged in the supply of any product and each competes only on price because consumers have all the information they need on all of them to know that the products are indeed identical.

Those same consumers, it is also assumed, could also at any time set up their own business to compete in this market if they wanted to because it us assumed everyone has equal access to all the capital they need, and at the same cost, whoever they are.

But if instead they decide to work for someone else they will join a labour market where everyone i paid exactly the value of what they produce: there are no standard wage rates in this market. Each gets paid their own worth, and what is more everyone can work that out, without cost arising to do so.

Oh, and by the way, there is no advertising to persuade anyone to buy anything in this market. All advertising that there is provided just for information as everyone already knows exactly what they want, even if it has not been invented yet.

He doesn’t even manage to get his misunderstandings right. For example, in a “perfect market,” that logical simplification just to see what happens, all firms and producers are price takers, meaning they cannot compete upon price. Because there is only that one, market, price.

Sigh.

9 thoughts on “El Twatto Di Tutti Twatti”

  1. Of course the magic money tree and his obnoxious idea of an excessive consumption tax would exist in a perfect vacuum of righteousness untainted by reality or political shenanigans.

    Of course in classical economics the word IF is used rather frequently so that the student understands this is a theoretical concept that will be affected when reality kicks in. Obviously the potato doesn’t believe in reality

  2. Dear God. Has he really found a simgle economist who works on the assimprison that all markets are perfect?

    Otherwise, his defence of socialism jn the face of the numerous examples of it failing is to fail to provide a single example.of it working anywhere.

  3. Capitalism is Marx’s pejorative of free enterprise.

    ‘It assumes that all markets are ‘perfect’. That means there are masses of firms engaged in the supply of any product and each competes only on price because consumers have all the information they need on all of them to know that the products are indeed identical.’

    What a dumbass. When buyer and seller come to an agreement, trade takes place. In a sense, it’s perfect – both sides win. Where did this mythical ‘masses of firms’ come from (I know, his arse)?

    ‘Those same consumers, it is also assumed, could also at any time set up their own business to compete in this market if they wanted to because it us assumed everyone has equal access to all the capital they need, and at the same cost, whoever they are.’

    Assumed by whom? I’ve never heard this before.

    ‘But if instead they decide to work for someone else they will join a labour market where everyone i paid exactly the value of what they produce’

    No, dumbass. They are paid less than what they produce. This guy has no intellect AT ALL. DOUBLE OUGHT ZERO!

    ‘there are no standard wage rates in this market.’

    True. The labour market sets wage rates.

    ‘Each gets paid their own worth’

    No, dumbass. They are paid what the market requires to retain them. Their worth is determined by the external market, not what they are doing in the business.

    “Employers pay what they have to pay to attract and retain people who can do what they want done.” – GC

    What annoys Murphy is that I can buy a loaf of bread from my neighbor, without the involvement of 100 other people, without it being taxed, without the content defined by law, without third parties participating in the remuniration. PERFECT!

  4. Bloke in Costa Rica

    Typical Murphy: assemble more straw men than a Worzel Gummidge lookalike competition; inveigh against said straw men; wank like a demented chimp to shuddering red-faced completion.

  5. Murph is entirely consistent. He doesn’t understand the models, and he doesn’t understand the world they are attempting to model.

  6. At some point he might turn the page in his semen-stained copy of “Economics for Dummies” and discover “imperfect competition” , “monopolies” , and “oligopolies”.

    Then he will rip them out for the crime of being neo-liberal

  7. No-one seems to have pointed out that the “physics” taught around the world in schools is completely inaccurate, at least for motion and trajectories.

    Wake up, sheeple!

    They always teach this stuff assuming spherical chickens in a vacuum. But in the “real world”, there’s air, and different shapes, and stuff.

    Candidly, I early came to the conclusion that all the physics taught was completely wrong and I set out to come up with my own.

    Let me introduce you to the epicycles I’ve discovered.

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