In a homage to economist Alfred Marshall's principle that both supply and demand shape market prices, this article illustrates the critical role of government intervention in balancing the scales. In today's economy, letting market demand alone drive prices leads to inequality and environmental degradation. It is imperative that active policies and regulations are in place to ensure fair wages, protect small businesses, and combat climate change. The free market, if left unchecked, will continue to favor the wealthy elite at the expense of the working class and the planet.
The Missing Half: Why Market Demand Can't Dictate Fair Prices Alone
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Jan-19
Immigration
Score: 0.50
The title of this post is a nod to Alfred Marshall, who stressed that supply and demand analysis required we think about “both blades of the scissors.” Prices are not set by supply or demand alone – it is the interaction between the two that is crucial. It is…
From Econlib.org
Jan-19
Immigration
Right Variant
Score: 0.80
Paying homage to the insightful work of Alfred Marshall on how prices are formed, this article argues against the heavy-handed government intervention in the economy. It posits that the natural interplay between supply and demand is the most efficient and fair mechanism to determine market prices, promoting innovation and consumer choice. The push for regulations and controls not only stifers economic growth but also infringes on individual freedoms. In a free market, businesses, driven by competition, will naturally address consumer needs and environmental concerns without the need for bureaucratic oversight.
From Econlib.org