Tuesday, July 31, 2018
Scarcity and Rationality
One common solution to Scarcity is rationing, e. g. during a water shortage. Rationing, too, is what constitutes Supply-Demand Equilibrium, i. e. each side receives half of what it is seeking. So, fair distribution can be characterized as 'rational'. Accordingly, unfair distribution is 'irrational'. Thus, Profit-Maximization, which seeks all take and no give, is irrational behavior, contrary to the standard characterization of it in Economic theories. Instead, the aspect of a Capitalist system that does involve rational behavior is operating as part of a Division of Labor, i. e. in which roles are distributed on the basis of some organizing principle.
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