A great post from Walter Williams. I’ll never forget the first time I heard him speak. He opened his talk with a discussion about the economics of rape and the economics of seduction. He described the economics of rape as the business of government, where “you do what I want or I’ll make you feel bad.” He said he preferred the economics of seduction where “you make me feel good and I’ll make you feel good.”
He talked at length about the transaction between the consumer and the grocer selling milk. He showed very clearly that in order to trade two dollars for milk, the milk had to be worth more than the two dollars was worth to the consumer. The two dollars, likewise, had to hold more value to the grocer than did the milk in his possession. I don’t think I’ve ever heard a better or more simple description of a “win-win” deal, where both parties are actually better off as a result of the exchange, no zero-sum fallacy here.
I don’t think Dr. Williams considers himself an “Austrian,” but he quotes them plenty, quoting Hayek in the above link, for example. I encourage you to pick up anything you can find by this brilliant and very funny man.
G. Keith Smith, M.D.