Sunday, January 5, 2014

China Please Read This Before Canada

Comment on: Quartz article: Is China going to be #1?

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Will China be the first country to truly understand that demand can't accurately be determined without a market? Maybe? Probably not though.

The Canadian government has mandated cable unbundling. They'll probably unbundle themselves next. It will be embarrassing when Canada spanks us because they allow their citizens to pick and choose which public goods they spend their taxes on.

Of course I'll blame you. Why? Because you never wrote a single post about the significance of the opportunity cost concept! You're like the poster boy for why physics majors should never become economists.

Naw, it's not your fault. Watch...

Step 1: Opportunity cost
Step 2: ?
Step 3: Efficient allocation of resources

There's no economic term for step 2. That's probably not your fault. Is it my fault? I guess. Why? Because I studied International Development Studies. I studied why China got beat by the Asian Tigers. I learned why all the efforts of "developed" countries to help developing countries failed so miserably.

Resources can't be efficiently allocated if they aren't allowed to freely flow in the most valuable directions. And the value of any given direction can't be determined without knowing the true values of citizens. And true value can only be determined when each and every individual has the freedom to decide between having their cake and eating it (opportunity cost).

I honestly hope that China reads this before Canada does.

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