2 trivial questions

Justin Schwartz jkschw at hotmail.com
Thu Jan 4 09:30:08 PST 2001


You know these questions are not in the least trivial.


>
>Sorry, i never took economy classes so my 2 questions are _very_ trivial.
>still i don't know in what direction to look for an answer so i ask for
>your
>help.
>
>first question: what is the logic that justifies private ownership of land
>and
>natural ressources ?

The usual economic justification is that private ownership is the most efficient arrangement, because private owners have an incentive to conserve and develop or exploit these resources with care, while common or state ownership would lead to wastage. This is the argument made by Howard Demsetz and A[marnd?] Alchian in various contexts. Demsetz's paper, arguing that private property is necessary for these reasons, is a classic of bourgeois ideology.


>
>second question: i work in a volunteer shop that works pretty much like
>oxfam
>shops. all the things we sell are given to us for free. when i put a price
>tag
>on something, am i creating money ? if not, what am i doing ?

No. You are just offering something for sale. The government increases the money supply by printing money or offering credit. If it doesn't, your offer just means that there is the same amount of money chasing more goods--other things being equal.

--jks _________________________________________________________________ Get your FREE download of MSN Explorer at http://explorer.msn.com



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