Wednesday, May 09, 2007
Is It a Private Business, or a State (Socialist) Enterprise?
A service station that offered discounted gas to senior citizens and people supporting youth sports has been ordered by the state to raise its prices.
The above, is taking place in the United Socialist State of Wisconsin.
I refer you to the words of Ludwig von Mises:
Prices are a market phenomenon. They are generated by the market process and are the pith of the market economy. There is no such thing as prices outside the market. Prices cannot be constructed synthetically, as it were. They are the resultant of a certain constellation of market data, of actions and reactions of the members of a market society. It is vain to mediate what prices would have been if some of their determinants had been different. Such fantastic designs are no more sensible than whimsical speculations about the course of history would have been if Napoleon had been killed in the battle of Arcole or if Lincoln had ordered Major Anderson to withdraw from Fort Sumter.
von Mises quote taken from Human Action: A Treatise on Economics, Part Four, Catallactics or Economics of the Market Society, Chapter XVI, 15. The Chimera of Nonmarket Prices