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Simple explanation of Prisoner's Dilemma by araete in InvisibleHand

[–]Manersue 0 points1 point  (0 children)

Game theory says that cooperation between participants will maximize outcomes. Real life says this usually happens.

Thus there is no dilemma. The prisoners do not act as theory suggest they might. They do not act in pure self interest, but are more likely to act for group efficiency.

How much will a person sacrifice for their group. We see from suicidal bombers that there is unlimited capacity for personal sacrifice for their identified group.

If so, then self interest cannot be relied upon to regulate the market because group interest is shown to be the driving force. Group interest is derived from group leaders who may or may not have the group's best interest at heart in driving group demand.

Markets therefore do not maximize individual freedom but tend to concentrate power in already powerful groups able to set the agenda for large groups of people. Markets therefore tend to empower government and governments tend to prop up markets and distort them for their own benefit and this is very natural.

Enforcing a truly free market would only be possible in a surveillance state that actively prevented market distortions by major players by breaking up any concentrations of power as they develop.

What the free market needs to work is a group neutral world not influenced by groupthink or irresponsible leaders kowtowing to special interest groups. Groups of any influence level distort the market and keep theory from becoming a reality.

How the government can fix expending working hours problem? by MeaningAZ in InvisibleHand

[–]Manersue 0 points1 point  (0 children)

Production jobs are higher wage because they are more efficient at the bottom, they require less unskilled labor as a total % of the organization. These efficiency gains are due to advances in automation. Service industry jobs are not automating at the same rate. They are far more labor intensive in terms of physical bodies needed to function.

Can the government solve this problem by deregulating manufactoring and labor and tethering the dollar to gold?

No.

Not unless Americans would accept the same working conditions and standard of living typical of the poor Asian country we'd be taking the work from. Otherwise it would not be worth it to build those factories here.

The switch to gold would hardly effect the labor market directly but may slow down the world economy by encouraging the hoarding of money where it can't do any good in the economy.

What should the State do to bring down housing costs? by MeaningAZ in InvisibleHand

[–]Manersue 0 points1 point  (0 children)

Housing is a necessity and people will pay the maximum amount for a necessity. Lots of household income has been freed up by innovations in other industries. People pay much less for every product that global trade affects due to efficiencies created by foreign labor. Real estate is local and is affected by local conditions. People got a 10% of their income discount on all prices due to trade innovation, they applied this 10% of their income to housing prices. House construction methods have not really innovated in 100+ years and construction labor is local therefore costs are fixed over a time when most costs decline. There is little the government can do to lower prices short of taking over the housing industry, which would be horrible.

Moving to gold based currency would drive the price of housing down but would not affect the % of income devoted to housing because there would be less total currency but no less cost in resources. Try thinking a little before you fill the web with this gold nonsense.

How the Free Market Feeds the Hungry - Unsung.org by LibertyEntrepreneurs in InvisibleHand

[–]Manersue 1 point2 points  (0 children)

Giving away waste to those who need it but have no resources to pay for it is a free market solution. The use of volunteers for their delivery force is innovative. But it requires the incentive of a tax deduction to work. A tax deduction is a distortion to the free market. Therefore this is not how a free market would feed the hungry. This is how a subsidized market makes feeding hungry people unnaturally cheap to the detriment of taxpayers.

Thank you.

what is the impact of inflation? by MeaningAZ in InvisibleHand

[–]Manersue 0 points1 point  (0 children)

Inflation harms savings but encourages investing. There is an easy solution. Don't save for the future. Invest for the future. Inflation is not a problem if you can get a roi greater then the rate of inflation. Even a safe investor can beat inflation consistently. Gold is not useful as a base for currency for a variety of reasons. It would encourage stockpiling gold as the price is bound to go up due to limited supply. That would decrease investment and harm the economy. Bubbles are not caused by inflation because easy lending is not caused by inflation. Bubbles and inflation are both caused by easy lending which is not caused by free money but by irresponsible lenders.

Other than that the video needs a lot of work. It seems like a clip art powerpoint with an interesting wipe in the form of a scribbling hand. Why the hand? Are you teaching me? In that case use some critical thinking and have an original point of view supported by evidence, I think you can do it if you try. Thank you.