A free market price yields to income. In other words, if you have to pay the asking price, it’s not a free market.
Advocates of the “natural monopoly” argue, however, that the free-market model is passe’. Monopolies price (measure) the maximum efficiency, yielding to added supply. They say that supply is added because high prices naturally demand it. Thus the supply-side axiom: “Supply creates its own demand.”
Supposedly, the only regulator we need is supply-side economics (Reaganomics). That would be true, for the most part, if there is actually a free market, but monopolies naturally act to defeat the free-market mechanism. In other words, the natural-monopoly model, being the natural derivative of free-market economics, is a lot of bunk. Nonsense!
The natural-monopoly model is what reactionaries call “free-market capitalism.”
In theory, being coerced into paying the asking price provides both the productive incentive for labor to work harder, and earn the asking price to pay it, and the capital needed to expand the factors (the means) to actually produce the supply, on demand, at the same time. Sounds reasonable, but that’s not what free-market capitalism actually does, simply because that’s not what it is really intended to do.
Free-market capitalism produces inflation (the monopoly price and rising debt to equity). It also produces unemployment (more supply than labor can demand–due to the monopoly price–without demanding more debt to the equity). The natural result (like the Austrian School says) is an accumulation of errors that (like Kant said) must be corrected (and will be corrected) sometime in the futures (meaning that the solution always exists now in the form of the errors, measured by the difference between the monopoly price and the real free-market price, to be realised, financially measured, on demand).
Having to demand more debt to the equity is referred to as unsystematic risk. It is not because the price does not adjust to your income, it is because you are not productive enough to demand the products produced (i.e., supply-side economics). Of course, that’s just a big fat lie! If you want to know why people are angry, and fed up with the established system, well that would be why!
(Built-up anger and resentment–an accumulation of errors–makes us less tolerant. That’s the beauty of a free-market eco-nomia: It always allows for the aggression of a passive resistance, legitimately coerced–agreed to–on demand!)
Really having a free-market system allows us to aggress a passive resistance–exactly what capitalists don’t want.
It’s time to have what “We” want.
Vote For Sanders!