It’s either bullies or balance sheets

Source: Foundation for Economic Education
by Jeffrey Tucker

“We have every right to declare what is or isn’t the right price for us to part with our own money or goods. But there is no standard beyond that to know the right price of anything. We think we know, but we do not. Prices emerge from markets to tell us something about the world around us. They enable rational calculation. They give rise to profit-and-loss statements that signal to businesses whether they are going about things the right way. They are a social tool to minimize waste and maximize opportunities for living a better life. A wise man once told me that in this life, you can obey balance sheets or bullies. In the end, those are the only two paths.” (02/16/17)