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To: buffaloguy
"Classical economics is not a “system” but an accurate description of how people interact on a daily basis. In other words, Classical Economics (capitalism, or supply side capitalism) is a description of how people make daily decisions on how much money or goods or services to give up to procure things or services or power which they perceive to have marginally more value than the money or goods in their hand. That is economics."

Thank you. I spend an inordinate amount of time explaining to people that "capitalism" (a term I really don't like, much preferring "free markets") is not so much a "system" as it is simply the natural means by which civilized people satisfy their needs.

If you go back to the basest caveman existence, there are three means by which an individual can satisfy their needs and wants:

1. Kill a deer (produce for one's self).
2. Trade half your venison for a room in a cave and a place at the fire (free exchange of goods and services).
3. Kill the cave owner and take everything for yourself (taking by force or guile).

Every economic interaction between individuals, organizations and nations has ultimately been some variation of one of the above three. As much as governments are instituted to prevent and limit #3, there really is no "economic system" until government tries to become involved in #1 and #2.

14 posted on 11/29/2012 7:04:44 AM PST by Joe 6-pack (Que me amat, amet et canem meum)
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To: Joe 6-pack

You’re welcome. This needs to be taught to every child at some point.

The system you talk about (with government intervention in #1 AND #2) is nothing more than decreasing the the rate of trading of values for perceived gain and should be undertaken with care and skepticism.


20 posted on 11/29/2012 7:40:37 AM PST by buffaloguy
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To: Joe 6-pack
If you go back to the basest caveman existence, there are three means by which an individual can satisfy their needs and wants

Not really. No caveman would have hunted by himself, it required a collective effort of the tribe's fit men. The same is for domestic activities of their women. Cavemen would seek a higher social status to gain more. It looks like the best javelin thrower gets the largest portion and the prettier women would have interest in him.

36 posted on 02/01/2013 12:55:53 AM PST by Freelance Warrior (A Russian.)
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