The problem is: more often than not dictators in third world countries are supported (if not established) by USA and the other rich countries.
As regards scarcity in first world countries: I think we should speak of scarcity of scarcity. We have too much of everything, that's why our companies are suffering.
Of course that is true, what you say about rich countries standing behind the dictators (good friendship between USA and Saudi family would be great example, but there is more).
What do you mean by the "to much of everything"? Do you mean the "overproduction" thing?
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
yes
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Ok, that is what I thought. :-) Well, to answer that, I would like say, that the "overproduction" concept is an element of neoclassic school of economy, and it is only one perspective on the production errors in economy.
The Austrians proposes rather the underproduction+overproduction concept, when one good is overproduced, while the other is on the shortage. hat is the "malinvestment" theory, which I prefer, considering it much closer to the reality.
The global "problem" of "ovberproduction" - if it is real - is impossible to avoid without risking the contrary: shortages and common poverty, like in Wenezuela. Entrepreneur decides to produce a little bit larger output , because he want to maximize his profits, it is better to sell more than less goods, even if there would be a tiny surplus wasted at the end.
If we had a brilliant god-like function of production which could take in to account the "future demand" for products, there would be no surpluses nor shortages and 100% goods would finde their consumers and no consumer would stay with nothing. But there is no such mathematical function at all - which the calculation debate between Mises, Hayek and Oscar Lange showed. So the only way to avoid shortages of everything is to overestimate future demand in hope of it's raise. The true problem is when some capitalist takes an absolutely false estimations (like when the interest rates are arbitrary lowered down by the central bank) and opens production of good which is not needed at all in society. That is the other problem, which austrian school of economics works on.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit