Monday, February 02, 2009

DELIBERATE LIE #1. The market is “efficient”

Warsocialism | This is the founding lie (actually an “idiosyncratic redefinition” of terms) which is designed to prevent engineers and scientists from investigating our money-based political system objectively. Economists know that people who do not have economic training are going to assume that “efficient” is used in the same way that engineers use the word: acting or producing effectively with a minimum of waste, expense, or unnecessary effort.

But for economists, “efficient” is always about “money" and means either “efficient distribution” of profits or “efficient production” ("cheapest production" as measured by money) of products – not the “efficient use of materials.” Since the market economizes “money” (that which is in limitless supply [4] ), the rich get richer and the poor get poorer. The reason economists use idiosyncratic redefinitions instead of coining new terms (like every other discipline) is to make them better liars!

Idiosyncratic redefinition allows economists to stand in front of your local Rotary Club and appear to HONESTLY use words that mean one thing to them, while Club members think they mean something completely different. This is how economists evade our innate ability to spot liars.

Far from being “efficient”, the so-called “market system” is probably the MOST INEFFICIENT social organization possible! The overhead (commuting to work, banks, insurance companies, advertising agencies, etc.) associated with our present way of organizing consumes the largest fraction BY FAR of our natural resources – something like 2 billion tonnes of oil equivalent per year! [5]