What is a price? The function of price in economics

What is a price? The function of price in economics

How are prices formed? The price is analogous to a tug of war, people will try to ‘pull’ you to the side that is most convenient for them. Each buyer subjectively values a product, so each person is willing to pay a different price. The seller, in order to increase his income, tends to prefer to sell to those who are willing to pay more, and the buyer, in order to keep his money, tends to prefer to buy from the one who charges the least. Thus, the price is the result of this bargain between sellers and buyers. The more sellers, the lower their bargaining power (they will compete for the sale), so, the buyers will have more options and they will tend to buy from whoever charges the lowest price.

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Philosophy

Socialism and fascism: Two sides of the same coin

If we think of what has been the European political debate throughout the last century, undoubtedly, we could not fail to consider it as the product of two big apparently opposite ideologies: socialism and fascism. They have characterized—and they still characterise—, the political life of a whole century, exploiting a specific propaganda which had the goal of creating the idea of two kinds of economic and political structures, born to be genetically contrasting.In fact, they have been much more similar than socialists and fascists would have desired and believed.

Negative and Positive: Two Concepts of Liberty

If you like the article’s title, I have to be honest with you: It is not my work. It is the essay’s title written by Isaiah Berlin, the first one who theorised about two kinds of liberty. According to what Berlin wrote, we could face two different varieties of freedom: negative and positive.

Freedom or equality: Why we can’t have both

Even more often we hear slogans which extol freedom and equality, as old socialist purposes. Almost every European left-wing party has used these ideals in its political narrative, uniting the main images that the socialist world has wanted to show about itself, in the second-half of the 20th century. It is hilarious that the representatives of the totalitarian regime, which had wiped out half of Europe with its coercive power, destroying all sorts of individual freedoms, would talk about freedom.

Spreading The Ideas Of Liberty

The liberty movement has often struggled with trying to convince people to embrace freedom, liberty and individuality; to create a beautiful world where people are free to pursue personal happiness and embrace the personal responsibility that comes with it.

Do we need a government?

If we take a step back and look at the past two hundred years, there have been radical changes. Slavery has been abolished virtually everywhere, democracy is widespread, wars are less common, and world poverty has never been lower.

Economics

What is a price? The function of price in economics

How are prices formed? The price is analogous to a tug of war, people will try to ‘pull’ you to the side that is most convenient for them. Each buyer subjectively values a product, so each person is willing to pay a different price. The seller, in order to increase his income, tends to prefer to sell to those who are willing to pay more, and the buyer, in order to keep his money, tends to prefer to buy from the one who charges the least. Thus, the price is the result of this bargain between sellers and buyers. The more sellers, the lower their bargaining power (they will compete for the sale), so, the buyers will have more options and they will tend to buy from whoever charges the lowest price.

Austrian business cycle: An introduction

After the financial crisis of 2008 the Austrian school of economics saw once again a resurgence in popularity both in public and the academia. This resulted from the fact that economists, financial analysts (Peter Schiff) and politicians (Ron Paul) that were familiar with the Austrian business cycle (ABCT) successfully applied it in predicting the boom and bust of the housing market. Today the theory gained popularity as people are looking for answers to high inflation, economic downturn, an extremely aggressive monetary policy pursued by central banks around the world. However even to this day the ABCT is widely misunderstood.

Who Benefits from Inflation? The Cantillon Effect

Who was Cantillon?

Richard Cantillon was an Irish-French economist known for the Cantillon Effect and for being the author of the great work; Essai sur la Nature du Commerce en Général (Essay on the Nature of Trade in General), a book considered by William Stanley Jevons as:

‘The cradle of political economy’

Learn Economics with The Cricket and the Ant

You, like me, must already know the fable The Cricket and the Ant. When I was younger, I heard it dozens of times, but I had not paid attention to all the important teachings of that story.

In this article, I will talk about the history of The Cricket and the Ant and about the connections I perceive between this fable and economics.

Free Banking Theory and History of the Monetary Sphere

Throughout the history of economic development, banking, and the monetary sphere as a whole, has been the subject of widespread unease to people and a seductive opportunity for Governments. Indeed, there is likely no other institution that has seen such a wide array of Government controls in some form or another; whether that be the formation of central banks, regulations, interventions or monopolisations; all for the purposes, we are told, of maintaining stability and ensuring any economic crises is averted or lessened.

This however is not the case. In fact governments’ seizing control over any aspect of money and banking, has seldom been for the purposes of stability or fiscal reasoning.

Politics

Who is responsible for the energy prices surge?

Gas prices have risen to record levels in October this year and are back to similar levels as we speak. The main reasons that the mainstream media are giving you are the Ukraine-Russia tensions, or the delay regarding the approval of the Nord Stream 2 pipeline. But what if at the core of the surging prices in Europe was the European Union itself?

They want the end of detached houses

The government of Emmanuel Macron wants to put an end to the detached houses, according to Minister Delegate for Housing, Emmanuelle Wargon. France is not alone when it comes to those absurd ideas regarding housing and we should be concerned.

Is it wrong to use the Star of David to protest Discrimination?

The Yellow Star of David, which the National Socialists would make the Jews wear in order to stigmatise them, started to be used again, recently, with the wording ‘Not vaccinated’, by protestors against the mandatory Covid-19 vaccination and vaccine passport schemes. The mainstream media, outraged by this, labelled the action as radical and antisemitic. Is it really? Or is it just a way to make a political statement proportionate to the current government policies? I will answer this question through an analysis of facts.

Science & Technology

Get a Clear Picture of Science News

Pop-science is currently no topic to overlook on social media. Websites or social media groups sharing factoids or infographics amass millions of likes and receive a high number of content re-shares. In parallel, pop-science magazines also attract many readers and have a strong online presence.

What You Need to Know to Join the Alt-Tech Exodus

So, you’ve heard that big tech companies have transcended the niggling free market and reached the lofty heights of partisan politics — and act accordingly. Unlike prominent political figures you might not make the top of the purge list, but it’s no secret that censorship is surging. Both to protect your freedom, and to stop providing resources to those who would undermine it, it makes sense to jump ship. Now, when everybody else is also doing it. But how?

History

City air makes you free: How cities freed medieval people

‘Stadtluft macht frei’ (‘City air makes you free’) is a popular German saying, referring to a principle of law in place in Europe during the Middle Ages. This one would enable a serf living unfree under feudalism to become free from their lord, in a city, after a period of one year and one day. This increased the migration of medieval people seeking freedom from the feudal territories to the cities from the 11th century onwards.

Because of that freedom, cities became a centre of trade, gathering merchants, entertainers and much more, and offering a large variety of products and services. This made the cities vibrant and prosperous, with its inhabitants enjoying better life conditions than on the feudal territories.

Britain’s Free Radio Revolution

In the beginning of the 1960s, the British Broadcasting Corporation (BBC) had the monopoly of radio in the United Kingdom. In fact, apart from one commercial TV network, the airwaves were owned by the BBC. As it happens with any monopoly, because of the lack of competition, the broadcaster was not particularly interested in providing better quality services, and ones that would fit the demand of the British. Because of that, some people started their own radio stations broadcasting their programmes from boats located outside the British territorial waters. These were known as free (or pirate) radios.

The Window Tax: Daylight Robbery

The Window Tax was a property tax based on the number of windows in a house, first introduced in Britain in 1696 and later on, in France. It resulted in a new form of tax avoidance, as people started to brick up their windows in order to avoid paying the tax. Those old houses with windows having been bricked up or plastered can still be seen in England and France today.

Reblochon: the French Cheese born from Tax Evasion

Reblochon is a soft French cheese made in the Alpine region of Savoie from raw cow’s milk. It is, without a doubt, one of the most famous French cheeses. It is commonly used for cooking in France and is a key ingredient to several dishes such as the popular Tartiflette; a Savoyard gratin made from potatoes, bacon and onions. However, few people know the story behind the origin of this cheese. In fact, Reblochon was born as a result of an early form of tax evasion in the Middle Ages.

The anarchist Republic of Cospaia

People often think that the lack of a government and the lack of laws would create some kind of Mad Max Society, where people would savagely kill each other. Hollywood certainly helped to shape our thinking about how the abstention of some authority would lead us to total chaos, after all, they have been making a lot of movies with themes such as the wild west since the beginning of the twentieth century. I am sorry to disappoint you, but the wild west was not that wild. Perhaps in another article I will talk about the Wild West not being Wild. In this article I will talk about something older and in the old continent.

Français

What is a price? The function of price in economics

Qu’est-ce qu’un prix ? La fonction du prix dans l’économie

Comment les prix sont-ils formés ?

Le prix est analogue à un tir à la corde, les gens essaieront de vous “tirer” du côté qui leur convient le mieux. Chaque acheteur évalue subjectivement un produit, de sorte que chaque personne est prête à payer un prix différent. Le vendeur, afin d’augmenter ses revenus, a tendance à préférer vendre à ceux qui sont prêts à payer plus, et l’acheteur, afin de conserver son argent, a tendance à préférer acheter à celui qui facture le moins. Ainsi, le prix est le résultat de cette négociation entre vendeurs et acheteurs. Plus il y a de vendeurs, plus leur pouvoir de négociation est faible (ils seront en concurrence pour la vente), ainsi, les acheteurs auront plus d’options et ils auront tendance à acheter à celui qui demande le prix le plus bas.

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A Teoria austríaca dos Ciclos Econômicos (TACE): Uma introdução

A Teoria austríaca dos Ciclos Econômicos (TACE): Uma introdução

Após a crise financeira de 2008, a Escola Austríaca de economia observou mais uma vez um ressurgimento da popularidade, tanto no público quanto no meio acadêmico. Isso resultou do fato de economistas, analistas financeiros (Peter Schiff) e políticos (Ron Paul) que estavam familiarizados com a Teoria Austríaca dos Ciclos Econômicos (TACE), aplicá-lo com sucesso na previsão do boom e da queda do mercado imobiliário. Hoje, a teoria ganhou popularidade à medida que as pessoas procuram respostas para a alta inflação, a desaceleração econômica e uma política monetária extremamente agressiva seguida pelos bancos centrais de todo o mundo. No entanto, até hoje a TACE é amplamente mal compreendida.

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Socialismo e fascismo: Due facce della stessa medaglia

Socialismo e fascismo: Due facce della stessa medaglia

Se pensiamo a quello che è stato il dibattito politico europeo nel corso dell’ultimo secolo, senza dubbio, non possiamo non considerarlo come il prodotto di due grandi ideologie apparentemente opposte: il socialismo e il fascismo. Queste visioni hanno caratterizzato- e caratterizzano tuttora- la vita politica di un intero secolo, sfruttando una specifica propaganda che aveva l’obiettivo di creare l’idea di due tipi di strutture economiche e politiche, nate per essere geneticamente contrapposte. In verità, sono stati molto più simili di quanto socialisti e fascisti avrebbero voluto e creduto.

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