"What brought [people of different cultures and religions] together, induce them to cooperate to make this pencil? It was the magic of the price system. The impersonal operation of prices that brought them together and got them to cooperate to make this pencil so that you can have it for a trifling sum. That is why the operation of the free market is so essential. Not only to promote productive efficiency but even more to foster harmony and peace among the people's of the world".Religion comes to mind. The impersonal operation of prices being God, the lumberjacks of Washington unite with the graphite miners of South America, fraternise with the rubber tree growers of Malaysia, hold hands with the New York pencil buyers, under His infinite wisdom. They are all Free Market God's children: the pencil paint applicators, the brass ferrule fitters, the pencil lead sharpeners, the stationers, the miners, students and lumberjacks - and live in peace and harmony ever after. Long live capitalism. Amen.
Saturday, 3 April 2010
Free market, Milton Friedman and the Pencil
A yellow pencil in the hands of Milton Friedman teaches the virtues of free market.