I understand that illegal criminals are at work in the current market so as to make abundance scarce. Isn't that the illustration you gave?
My question is how does the free market work to make the value at cost?
I say that in a free market there are no nefarious forces at work to willfully hedge and deplete markets.
However, there are natural forces at work. Drought, storm, fire, etc. If much of the wheat in America is destroyed and there is not enough to go around the highest bidder who has the most money and who wants the wheat the most will get the wheat.
Take eBay for example. A rare item no longer stocked. The price to make the item does not come into play. The rarity of the item comes into play and the demand for the item.
I could by a box of stuff for $10 bucks and sell the items in the box by the piece and can get $100 bucks for a single item. The box only cost me $10, but there was a single thing of value in that box and someone, or a lot of someones wanted that single piece that no one else had so the original retail of that single piece may have been $30 and I paid $10 for it and sold it for $100.
To me, an un-manipulated auction is the best view of the free market. Land sells by auction around here. It brings what the market will bear depending on who wants the land and how much money they have and how much land is being sold at the time...and of course how much people are making in their savings account which may be the not so free part of the picture.
How do Product 1 and 2 play into a FREE market and COST at limit? Everyone has plenty of money to buy the wheat that is scarce because they have relatively free money to buy houses and energy so the price of scarce wheat may go way up?
That is how I understand things. That is my power at work. That is my experience at work. Am I wrong?
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