[Dragaera] Not tried capitalism

[Maximilian Wilson]

On Sun, Jun 2, 2013 at 3:11 PM, Howard Brazee <howard at brazee.net> wrote:

>
> On Jun 2, 2013, at 8:58 AM, Konrad Gaertner <kgaertner at tx.rr.com> wrote:
>


> > Are informed consumers actually a part of capitalism?  I know
> > capitalists claim so, but at the same time they're doing everythig
> > they can to manipulate and mislead us.  But I'm happy to be called a
> > socialist.
>
>
> Somewhat.    That's how the invisible hand works.   And certainly owners
> being in charge is part of capitalism, and CEOs who do well get rewarded
> and CEOs that do poorly don't.
>

Good point. Asymmetrical information is one of the pitfalls of
capitalism--the 'invisible hand' works best when everybody has access to
all the information. See: the Lemon
Problem<http://en.wikipedia.org/wiki/The_Market_for_Lemons> and
the health insurance market, where the individual seeking insurance knows
better than the insurance company whether he is sickly or not.

Capitalism relies on transparency. Whether that's a realistic assumption or
not, well, I dunno.

-Max

-- 
I could not love thee, dear, so much,
Loved I not Honor more.

'If you do not accuse each other, God will not accuse you. If you have no
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