It's always about the consumers.Always, always, always. Producers produce in order to satisfy consumer desires. Production exists for the purpose of consumption. Any analysis that doesn't come back to the consumers has fundamentally misunderstood the entire purpose of production. And it's usually producers trying to screw the consumers to their benefit, using monopoly tactics. See: all discussions of foreign trade, stimulus spending, the broken-window fallacy . If you're not talking about the consumer, you're doing it wrong. Here's Boudreaux on the topic.
Wednesday, October 31, 2012
The hidden law of economics
In 5 words:
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8 comments:
Is the auto company GM a producer or a consumer?
See: Intellectual Property.
The purpose of IP is not to make sure authors control their property or get paid for their efforts. It's to give authors the incentive to produce for the benefit of consumers.
Look, it's right here in the constitution:
To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries;
So, on the topic of digital technology and pirated music, the question is not "Are artists and record companies getting paid for what they make?" it's "Are people listening to more or less quality music these days?" And there the answer is obvious.
You sound like my Jeff Bezos...
oh was going to be my CEO, then switched.. as a disclaimer I do not own Jeff Bezos.
Rsf,
Company...clearly producer on first analysis.
To use Aristotle's terminology they are not a final consumer regardless their intermediate role.
Rsf,
Company...clearly producer on first analysis.
To use Aristotle's terminology they are not a final consumer regardless their intermediate role.
Company is consumer by my analysis: buys lots of stuff, loses money, receives charity.
Let's help them some more.
RSF,
There's 2 meanings (at least) of producer, consumer.
Economic: One role is to consume goods. Other role is to produce goods. Consumer trades currency to producer for goods. On this count, GM is a producer, and it's not close.
Effectiveness: Some groups produce value. Other groups consume value. On this count, GM is a consumer, and it's not close.
I was talking the first sense.
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