posted Fri, 01/11/2013 - 15:39
1869
supply and demand and the invisible hand
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anyone taken macro economics before?
it states that through the invisible hand (the motivation behind why people do things)
will create the highest quality products at the best prices.
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Capitalism works on the black market.
See what a lack of government regs does? Occasionally, someone gets burned, but a lack of buyer protection and the positive monetary feedback that is gained only from successful, repeat customers means the best products come out on top.
CleyonPerfectly put. without the government involving itself in the business it is more efficient, and unlike some companies when a supplier doesn't live up to their obligations they go away.
Eroids is the purest unmolested market I have found. There are no guns killing off competition and the market actually runs itself based on supply and demand and what the people want. The quality and the service are the most productive sources. This is actually the perfect proving ground for economic theory. There is also no government per se to regulate the markets. All we need to do is start trading in gear and we could actually make some cabbage! Anybody want to go public LOL!!!
Not sure I follow your definition of the invisible hand though.
AnonMonster, you have to realize Economics is only a theory. Some call it a science but its hardly that.
There are simple rules to basic economics, but todays markets often fall far outside those rules.
Now that some of the business's have gotten so big they dont follow the rules, they make them.
I can tell that you didn't read through this thread or take any eco classes, they have many real life examples of their "theories" and most of them are major parts of marketing history.
AnonJust because there is an example or a part of history doesnt mean its not a theory. And I did not read every reply, but I certainly read your opening argument.
You just let me know when you apply your "theory" to practical application, Because I can tell all you have done is take half a class. If you had any experience running a business you wouldnt be so sure of these theories. Classic case of text book vs real world. Still though keep up the good work at school, you might actually just get to try some of that out one day.
This theory is applicable to today, and evident with the presence of China - I dont like it. The "invisible hand" drives efficiency and quality. Profit is the motivation. This equates into a balance amongst the markets, in theory. Even though true I feel it is apparently dangerous, and trade measures being established and enforced will prevent shifts in economic power from having a negative effect, on the global market.
AnonIf the invisible hand drives quality, then why is it year after year now I have been watching a decline in quality of products that come from China ?
Lets look at the business example of Wallmart and Rubbermaid, or Wallmart and Gilmore.
Wallmart starts buying product from these companies, who at the time had factories in the US. Wallmart becomes such a huge buyer that these companies decide to expand just to produce enough for this one big customer (Wallmart). After the expansion is complete and a new factory built, Wallmart comes in and says, well instead of .75 cents per item, we're only going to pay you .50. So now what does Rubbermaid or Gilmore do ? They have this new factory they just spent all this money on and now they have to play ball or it sits empty and they go under from the lost investment. OK so they are married to Wallmart now, and they play ball for a while but then Wallmart says, we need it cheaper go make it in China ! So now quality suffers, the US looses more jobs, and people still buy the shit from China even though the quality has gone down.
This shows that we as the consumer have little power to drive quality in the product we are offered.
Another example I am VERY familliar with is Chinese wheel bearings. For about two years now any good mechanic will tell you not to put a chinese wheel bearing in your car. Many of them fail in just months ! But yet more and more manufacturers are having wheel bearings made in China, and in fact now almost all original GM parts are made in China. We here on my end are seeing parts fail at an exponentialy higher rate than ever in history. So who is regulating that quality ? Certainly not the consumer.
that is only give certain conditions .. not in glut market where china floods the market with cheap goods.. it still works to a certain extent .. take anavar for example... having a whole shipment of raws seized will drive the market price up because supply is down and demand stayed steady and or increased..
I think you have missed the point, even though the china market floods it with cheap goods, whoever has access to the highest quality of these cheap goods will still be making the majority of the profit.
And of course the 2nd part of your paragraph is standard for supply and demand.
As an individual taking macro and micro three times, due to a bullshit attendance policy, I say that the China market was not what it is when this theory was made.
the communist chinese market had free laws on trading and opening business though, that was enough for great growth.
I think the less greedy people are .and the most focused in proper business transactions has the most profits to gain in a thriving market live ours.
no.. the greedier they are they more motivation they have to provide the best quality products at better prices for the domination of the market.
Spoken like a true sick and twisted meniacle villain .Corruption for currency regardless of how many lives you destroy and how many more you convince that what you consider to be fair trade practices.Which Im sorry to tell you it is far from. I own a business and I avoid you slugs like the plague.My motivation comes from seeing how my products serve a purpose other than being scraped off someones boot.I obey the laws that brought me here to this point and stick with the demographics of my ideal customer one of which I serve with complete trust and confidence.I guess not yo many have that comfort.Stick with dominating your end of the line because once you cross mines ITS ON!.
( . Y . )
StevebWhy the boobs?
Seemed fitting.
StevebI got you, lol.