Current Events > Economic laws are so weird

(+) Yeah! (+)

They are a mix of psychological, physical, logistical, etc laws all in one

---

They all, more or less, distill down to "Don't be a thief - except you, you can go right ahead with that"

Questionmarktarius posted...

They all, more or less, distill down to "Don't be a thief - except you, you can go right ahead with that"

I mean the approaches to natural economic laws, not the normative ones...

---

Topic's kind of vague. What's an example of what you mean by economic laws?

---

PMarth2002 posted...

Topic's kind of vague. What's an example of what you mean by economic laws?

Admittedly supply and demand is the only one I am familiar with, this topic is new to me. Let me look for a few more.

---

That's what makes it interesting.

https://en.wikipedia.org/wiki/Law_of_demand

This law, the one people are familiar with, can't just be reduced to economic value. It is at least part psychological because it makes a claim on what people are willing to buy and how much of it they want to have in circulation. Because goods aren't put directly onto the market ex nihilo, or bought ex nihilo, you have to account for the psychological element. There is also a logistical element in setting the ideal boundary, but I guess at that point it tends into normative territory.

https://en.wikipedia.org/wiki/Law_of_rent

"The law of rent states that the rent of a land site is equal to the economic advantage obtained by using the site in its most productive use, relative to the advantage obtained by using marginal (i.e., the best rent-free) land for the same purpose, given the same inputs of labor and capital."

Might this actually be normative? @Questionmarktarius
Either way there is physics at work here, you cannot develop two houses in the same spot, so to say, economic laws would be very different if you could break physical laws in a way that psychological laws wouldn't be affected by a change in physical laws, but I guess that is just an intuition.


---

Supply and demand works well for luxury brands. Add in a pinch of mark up tactics and you have a winnAr.

---

MedeaLysistrata posted...

I mean the approaches to natural economic laws, not the normative ones...

Oh, natural economic laws.
Go read Sowell, particularly Basic Economics. He explains the concepts very well.

Questionmarktarius posted...

Oh, natural economic laws.
Go read Sowell, particularly Basic Economics. He explains the concepts very well.

everyone always recommends him

---

MedeaLysistrata posted...

everyone always recommends him

...then, why haven't you read it yet?

Questionmarktarius posted...

...then, why haven't you read it yet?

backlog

---

MedeaLysistrata posted...

backlog

That's fair. It's a big ol' thick book.