- 16 Oct 2014 22:53
#14476731
If what you want is simply accounting of cost, then nobody is going to disagree: all firms already compute their costs. I wouldn't call that a "price", it already has a different name: "cost of revenue", which you will find in every financial report.
Well duh. Speculative ventures are high risk. Are you saying that risk estimate is incorrect?
Capitalist markets don't really find it difficult to fund risky investments. Venture capital exists in capitalist economies, not so much in socialist ones.
So... do Cuban health workers have an Ebola vaccine?
Medical research (and other research) would indeed present a market failure absent a government involment. But... thank God, we know it, and thus we have government involvement. The US government spends $50 billion/year on medical research.
Typhoon wrote:I would not view the relationship between input work and output as a positive one, otherwise there is the problem mentioned by Lucky of workers expending energy into things just to make them more valuable. Perhaps it is better viewed as 'cost' based pricing?
If what you want is simply accounting of cost, then nobody is going to disagree: all firms already compute their costs. I wouldn't call that a "price", it already has a different name: "cost of revenue", which you will find in every financial report.
Typhoon wrote:Correct me if I am wrong but I think Capitalism finds this process very difficult as well, investment in unproven ideas can often be considered as high risk?
Well duh. Speculative ventures are high risk. Are you saying that risk estimate is incorrect?
Capitalist markets don't really find it difficult to fund risky investments. Venture capital exists in capitalist economies, not so much in socialist ones.
Typhoon wrote:Similarly to the argument of Pants-of-dog, we might view the level of investment in third world diseases like Ebola as a sign that Capitalism cannot correctly assess the value of some goods (a vaccine) to society, a Socialist central planner may very well do much better here (e.g. Cuban health workers).
So... do Cuban health workers have an Ebola vaccine?
Medical research (and other research) would indeed present a market failure absent a government involment. But... thank God, we know it, and thus we have government involvement. The US government spends $50 billion/year on medical research.