Montana Fallacy: The Buried Treasure Case (Century Series Novels Book 4)


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Understanding of delusion among the Holy Fathers

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What is it that gives them an incentive to trade? The answer clearly is that if each household concentrates on a small range of activities, producing things for itself indirectly, by trade, rather than doing everything for itself, everybody can be better off. This possibility arises for two reasons: one is that an individual can achieve a higher degree of competence in an activity if he specializes in it rather than engaging in many activities; the other, closely associated but not identical, is that people are different and each can specialize in those activities for which he has special capacities.

Even if everyone were identical in all his capacities and abilities, there would still be a gain from division of labor which would make a larger total return possible because each individual could concentrate on a particular activity. But in addition, diversity Edition: original; Page: [ 6 ] Edition: current; Page: [ 11 ] among people becomes a source of strength because each individual can concentrate on doing those things that he can do best.

So the incentive for the households to engage in trade and to specialize is the possibility of a greater total output. The protection to Household A is that it need not enter into an exchange with Household B unless both parties benefit. If exchange is voluntary, it will take place if, and only if, both parties do benefit.

Each individual always has the alternative of going back to producing for himself what he did before so he can never be worse off; he can only be better off. In a modern society, we have gone much farther. We have introduced enterprises which are intermediaries between individuals in their capacities as suppliers of services and as purchasers of goods. And similarly, specialization of function and division of labor could not go very far if we had to continue to rely on the barter of product for product. In consequence, money has been introduced as a means of facilitating exchange and of enabling the act of purchase and of sale to be separated into two parts.

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The introduction of enterprises and the introduction of money raise most of the really difficult problems for economics as a science. But from the point of view of the principles of social organization, they do not fundamentally alter the essential character of economic arrangements. In a modern complex society using enterprises and money it is no less true than in the simple idealized world that co-ordination through the markets is a system of voluntary co-operation in which all parties to the bargain gain.

So long as effective freedom of exchange is maintained, the essential feature of the market is that it enables people to co-operate voluntarily in complex tasks without any individual being in a position to interfere with any other. Many of the difficult technical problems that arise in applying our principles to actual economic arrangements are concerned with assuring effective freedom to enter or not to enter into exchanges. But so long as people are effectively free to enter into an exchange and are reasonably well informed the essential feature of the market remains that of our ideal example.

It provides for co-operation without coercion; it prevents one person from interfering with another. The employer is protected from being interfered with or coerced by his employees by the existence of other employees whom he can hire. The employee is protected from being coerced by his employer by the existence of other employers for whom he can work; the customer by the existence of other sellers, and so on.

Montana Fallacy: The Buried Treasure Case (Century Series Novels Book 4) Montana Fallacy: The Buried Treasure Case (Century Series Novels Book 4)
Montana Fallacy: The Buried Treasure Case (Century Series Novels Book 4) Montana Fallacy: The Buried Treasure Case (Century Series Novels Book 4)
Montana Fallacy: The Buried Treasure Case (Century Series Novels Book 4) Montana Fallacy: The Buried Treasure Case (Century Series Novels Book 4)
Montana Fallacy: The Buried Treasure Case (Century Series Novels Book 4) Montana Fallacy: The Buried Treasure Case (Century Series Novels Book 4)
Montana Fallacy: The Buried Treasure Case (Century Series Novels Book 4) Montana Fallacy: The Buried Treasure Case (Century Series Novels Book 4)
Montana Fallacy: The Buried Treasure Case (Century Series Novels Book 4) Montana Fallacy: The Buried Treasure Case (Century Series Novels Book 4)
Montana Fallacy: The Buried Treasure Case (Century Series Novels Book 4) Montana Fallacy: The Buried Treasure Case (Century Series Novels Book 4)
Montana Fallacy: The Buried Treasure Case (Century Series Novels Book 4) Montana Fallacy: The Buried Treasure Case (Century Series Novels Book 4)
Montana Fallacy: The Buried Treasure Case (Century Series Novels Book 4)

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