Friday, July 27, 2018

Profit-Maximization and Scarcity

In simple Barter, Market activity is governed by complementarity--the shoemaker trades with the farmer, the result of which is that each has both food and shoes.  Market antagonism is thus the consequence of the introductions of the Profit-Maximization motive, and Money, in which each party aims at gain at the expense of the other.  This antagonism is a premise of Capitalism and Marxism alike, resolved by differing concepts of an inherent tendency towards Equilibrium, i. e. the Invisible Hand vs. Dialectics.  But, the premise is contingent, so, the solution is, as well, i. e. Dialectical Materialism is not a Necessary principle.  Now, at the heart of the introduced antagonism is a struggle for a quantity of money that both cannot have, with Equilibrium a division of that quantity, ideally a half to each.  So, therein lies the real source of any Economic antagonism--Scarcity, i. e. there is not enough for both sides to maximize gain--certainly a natural condition in many cases, but an artificial one in Economic systems that are consequences of Profit-Maximization.

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