Scarcity, Opportunity Cost and Competition impact our decision-making moment to moment. This makes economics the basis of life as we know it, after God. Nothing that people value is free, someone pays the cost. To gain that thing of value, scarce resources are given up and cannot be given up again for a different thing of value. And we all are competing to capture those scarce resources.
Saturday, January 2, 2010
Privitization
So now the big stink in the Wayland Union Schools is whether to privatize the custodial services. In other words, to put a wanted service into the hands of 'greedy, money grubbing capitalists who are just out to make a profit'. The profit motive is the best of a bad situation in this world. It forces all to acknowledge the facts of Scarcity and Competition. Very likely we would find that the custodial services will be as effectively provided at a lower cost given that several companies are vying for our business. If one firm isn't providing the quality expected, then move on to the next one. Status Quo is a morass of stagnation and union hegemony.
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Here's that guy's argument regarding minimum wages and the monopsony market.
ReplyDeletehttp://profile.ultimate-guitar.com/Kiwi+Ace/blog/63245/