Thursday, October 27, 2011

Market Prices Are Not Invisible

Alan Wheatley, Global Economics Correspondent writes in News Daily HERE

“Population boom heralds big global economic shifts”

“With the global population headed for the 9 billion mark by 2050, economists are pinning their faith on continued technological innovation and the invisible hand of market prices to lead to a more efficient, sustainable use of finite natural resources instead of a deadly fight to the end for the last barrel of oil and drop of water.”

I hope economists are NOT “pinning their faith on …the invisible hand of market prices”.

One thing for sure on the controversial question of the “the invisible hand’, not such things as “invisible market prices” exists or can exist.

Visibility of market prices is assured. No price system could work if prices were “invisible”.

If Alan Wheatley disagrees, please would he explain how an invisible price system conveys the necessary information for a market to work!

Their necessary visibility characterizes a market from a non-market, and that is a global certainty.

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