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0 pointsmindslight2mo ago0 comments

> as long as people engaged in a market make their own choices, then money is a direct measure of happiness on the margin

That is a big if which is straightforwardly false. This idea of market participants' choices being entirely free rests on the efficient market fallacy [0]. Whereas the reality is that even the structure of a market itself creates friction. One of the main points of business schools is learning how to recognize and take advantage of this structural friction, which business people then conveniently forget when it's time to assuage their own egos regarding their counterparties.

[0] which is basically in the realm of asserting P == NP. The supreme irony is that if the efficient market fallacy were true, then central planning would also work as well!

0 comments

fsckboy2mo ago

>This idea of market participants' choices being entirely free rests on the efficient market fallacy

in an inefficient market, you can still choose to transact or not, and you will only do so if you feel you will benefit.

in an efficient market, the net benefit across society will be higher, but nothing in what I said requires an efficient market.

so you are simply wrong.

mindslightOP2mo ago

No, you cannot necessarily to choose whether to transact or not. For life's necessities (eg food, shelter) this is straightforwardly obvious. And you are making this claim in the context of the employment market, which is one step removed from that.

But even in the general case your argument still does not make sense. When we talk of a business providing societal utility, we don't include the business owner themselves in the integral. For example your assertion lets you conclude things like a casino owner who has made a pile of money but impoverished the community has made society better.

fsckboy2mo ago

>No, you cannot necessarily to choose whether to transact or not.

I didn't say you could, pay closer attention or you will not be able to understand arguments or learn anything.

What I said was, "as long as people engaged in a market make their own choices, then money is a direct measure of happiness on the margin."

however, your mistake does contain a germ of reinforcement to what I said: if you cannot choose to participate in a transaction, you will be less happy, i.e. allowing sellers to offer choices and buyers to make choices will increase happiness in every type of market.

before you make another mistake and go shooting off, I didnt say people will be happy, I said they will be happier, but happier is an unmitigated good.

1 more reply

johnnyanmac2mo ago

>in an inefficient market, you can still choose to transact or not

And if everybody chooses to not transact, you have a market crash. So... waves at 2026/2027

j / k navigate · click thread line to collapse

0 pointsmindslight2mo ago0 comments

> as long as people engaged in a market make their own choices, then money is a direct measure of happiness on the margin

[0] which is basically in the realm of asserting P == NP. The supreme irony is that if the efficient market fallacy were true, then central planning would also work as well!

0 comments

fsckboy2mo ago

>This idea of market participants' choices being entirely free rests on the efficient market fallacy

in an inefficient market, you can still choose to transact or not, and you will only do so if you feel you will benefit.

in an efficient market, the net benefit across society will be higher, but nothing in what I said requires an efficient market.

so you are simply wrong.

mindslightOP2mo ago

fsckboy2mo ago

>No, you cannot necessarily to choose whether to transact or not.

I didn't say you could, pay closer attention or you will not be able to understand arguments or learn anything.

What I said was, "as long as people engaged in a market make their own choices, then money is a direct measure of happiness on the margin."

before you make another mistake and go shooting off, I didnt say people will be happy, I said they will be happier, but happier is an unmitigated good.

1 more reply

johnnyanmac2mo ago

>in an inefficient market, you can still choose to transact or not

And if everybody chooses to not transact, you have a market crash. So... waves at 2026/2027

j / k navigate · click thread line to collapse