Michael Matulef on Nostr: The crucial role of prices is in tying together a vast network of economic activities ...

The crucial role of prices is in tying together a vast network of economic activities among people too widely scattered to all know each other. However much we may think of ourselves as independent individuals, we are all dependent on other people for our very lives, as well as being dependent on innumerable strangers who produce the amenities of life. Few of us could grow the food we need to live, much less build a place to live in, or produce such things as computers or automobiles. Other people have to be induced to create all these things for us, and economic incentives are crucial for that purpose. As Will Rogers once said, "We couldn't live a day without depending on everybody." Prices make that dependence viable by linking their interests with ours.


Thomas Sowell