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URL:  https://boards.fool.com/hi-jcradd-there-is-a-big-difference-between-25009864.aspx

Subject:  Re: Here's your chance: Balance the Fed budget Date:  1/7/2007  7:08 PM
Author:  Dwdonhoff Number:  200518 of 603841

Hi jcradd,

There is a big difference between perceived value and real value.

Really? Pray tell... what could that 'big difference' possibly be?

Without 'perception' how is value determined? What formula can you use that is both functional and eliminates humanity?


What you are pointing out here are weaknesses in a free market system, not strengths.
- Too many resources are put into creating the perception of value, rather than real value
- Too many poor decisions are made, at many levels, due to difficulty in distinguishing real values.


Again, same question; Without 'perception' how is value determined?


I'm not really arguing against a free market or in favor of central planning. In fact I'm very much on the free market side. However I think it is important to recognize weak points in that system and work to improve them as much as practical. It may not be easy to eliminate distortion of perception from the economy, but at least start by recognizing it as undesirable and not trumpeting it as a strength.

It is neither a 'weakness' NOR a 'strength.' It is merely the natural reality of human participation in an economic relationship.

Calling it a 'weakness' is simply wistful and silly. You can say that water being wet is a 'weakness' and complain about it all day long... but in the end, all the philosophies and theories in the world doesn't change simple realities.

Cheers,
Dave
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