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To: jwalsh07
Three questions for you Jebby.

1. What is the purpose of markets?

2. What is the purpose of evolution?

3. Who or what directs each of those?

Jebby? :-)

Markets are the macro-effects of many people engaging in trade according to certain rules. The collection of rules they trade by could produce a market that doesn't survive, or one that does. Interestingly, in practice the rules themselves tend to evolve over time as a new market gets established. Some rules are enforced by the coercive power of the state, and some rules are simply conventions & standards that everybody follows.

Likewise, evolution doesn't have a purpose per se. It's more of a macro-effect of random mutation + natural selection played out through multiple generations. Here too, there are rules such as the laws of physics & chemistry, along with ecological and developmental constraints that channel development in various, largely unpredictable ways.

Nobody directs either. Even in the economy, individual persons or companies are virtually never able to design nor predict major changes to the industry or economic landscape they are operating in. Sometimes perfectly well-run companies don't even survive such changes! The business case-study literature is rife with examples of companies that get blind-sided by new disruptive competitors or innovations.

340 posted on 01/26/2006 6:05:31 PM PST by jennyp (WHAT I'M READING NOW: your mind)
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To: jennyp
Lets keep it simple Jebby. :-}

Markets at their base are two individuals, one wanting to sell something and one wanting to buy that something. The purpose of that transaction is to profit the buyer and the seller. Markets in the macro sense, if you insist, are individulas and corporations doing exactly what the other two guys are doing. All done with a purpose, that purpose to profit from the transaction. To that purpose planning, complexity and direction are applied by those individuals and corporations.

So the market at large is the sum of all those planning, little intelligent, busy as a bee capitalists. Now take away the intelligence, the indivdual, the planning, the direction and the complexity. What happens to the larger market?

344 posted on 01/26/2006 6:15:16 PM PST by jwalsh07
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