| This question <6|11> overall <9|11> VonMises: <4|184-15>. graded A– |
| Question 4: Can you think of things which are part of the riches of capitalist society but which are not produced for and traded on markets? |
| [10] VonMises: In response to Squeezy's message [5] and in defense of capitalism, I rebut. Is it the greed in the capitalist society that is polluting water? An industry operated by technocrats may cause the same problem. Of course, the technocrats would try to avoid the negative externalities. But, they, too, are fallible as are those operating under capitalism. He may pollute the water out of ignorance, politics, inability to afford a better way, or even greed. The capitalist is subject to the same failings. I surmise that the problem of polluted water resulting under capitalism is a result of unjust laws or courts. Capitalism connotes private ownership of the means of production and not the right to create unlimited negative externalities. When a capitalist does create negative externalites, those affected or those governing are responsible to call for justice. Just legal recourse also serves as a deterrent for other industries that would possibly pollute the water. If we do actually have this problem of polluted water supplies in the United States, I am confident that it will be addressed and solved. |
| In the case that industry pollutes water under socialist rule, those governing are to solve the problem or balance the interests of the corresponding parties. They may or may not solve the crisis. They are not more capable of solving the water crisis than those governing under capitalism. But, the problem here is that there is arbitrary rule by a few. |
| In the same situation of the other countries, they, too, are responsible to balance the interests of the corresponding parties. This depends on the their ability to create justice. |
| My final comment is that Squeezy in message [5] in the last paragraph describes a limited supply with high prices as a shortage. By definition, this is incorrect. A shortage is, by definition, when there is more demand at the market price than there is supply. This would not be the case. Rather, people would be able to buy as much water as for which they would be willing to pay. |
| Hans: Thank you for a stimulating discussion. |
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