Generally a good thread, but I felt this single post made a great point that is underrepresented:
Prices communicate scarcity not value. Professional athletes don't earn more because they're more valuable to society they earn more because their skills are more scarce.
When politicians say they want to encourage home prices to rise what they're saying is they want to make housing more scarce and harder to obtain.
When unions say they want to keep wages high they mean they want to keep the supply of labor low. This is why health care is expensive is because barriers to entry prevent an adequate supply of something.
When government says it'll protect farmers from the price of crops from falling they're saying they want to make food harder to obtain.
A lot of scarcity is artificially created by government to street [sic] and control prices. The abundance we could have is often intentionally destroyed.
The poster is Bryce Carmony. Nothing here I don’t know, but I’ve never said it so clearly.
The great thing about this presentation is that if you get this out first, it will make getting across more subtle points that much easier.
Take mark-ups for example. Most students have trouble with this because they start with the idea that “businesses mark up prices”. If you ask them “How?”, not only do they not know, but they’ll often shift into nonsense “Because they can.”, “Because that’s what business-people do.”, “Because they only care about themselves.”, “Greed”. Things will work better if we teach scarcity first.