Monday, October 22, 2007

The Trinity of the Market Price

Have to love the end of a Sunday in the middle of football season.
Yes, Football, great weather, and papers to write for so many classes evolve into late nights... ok only until two because I my cost - benefit analysis tells me that sleep is greater than staying up to finish editing a paper.

The point, the Trinity of the Market found in Mises' Human Action.
Check it out page 338.
The pricing process is a social process. It is consummated by an interaction of all members of the society. All collaborate and cooperate, each in the particular role he has chosen for himself in the framework of the division of labor. Competing in cooperation and cooperating in competition all people are instrumental in bringing about the result, viz., the price structure of the market, the allocation of the factors of production to the various lines of want-satisfaction, and the determination of the share of each individual. These three events are not three different matters. They are only different aspects of one indivisible phenomenon which our analytical scrutiny separates into three parts. In the market process they are accomplished uno actu. Only people prepossessed by socialist leanings who cannot free themselves from longing glances at socialist methods speak of three different processes in dealing with the market phenomena: the determination of prices, the direction of productive efforts, and distribution.

Just as the Holy Trinity in the Father, Son, and the Holy Spirit. The pricing process is broken down only to allow our feeble minds to better understand it.