The Market Economy

In 2009, the U.S. census stated there are 130 million single family homes in America.

IMAGINE ALL THE REST

I want you to figuratively step back and derive a generalized mental image of the other 129,999,999 single home interior living spaces within America. Imagine how the average living room, bedroom, office, and kitchen present themselves. Don’t trip up on the details. Just imagine a generic layout.

TAKING INVENTORY

Keeping your mental image intact, now take a look around your living environment and note of all the items within eye’s reach. Quickly inventory the items in site, noting it by category not brand, type, or function. Finally, think which of these items are also present in the millions of other households in the U.S. and use that as a filter to draw commonalities.

To assist with your categorization, mine are: furnishings, electronics, fixtures, and building supplies (walls, doors, windows, floors, and outlets).

THE LITTLE THINGS

With your categories in mind, try to imagine the impact these items have upon the everyday lives of hundreds of millions of our fellow American citizens. A majority of us take these things for granted, as they are stoically present day-in and day-out – serving us like faithful, silent butlers. When I think of these things, security and pride come to mind. How about you? Really think about what you have and don’t get hung up on what is lacking.

Now for a quick lesson in practicality.

ORIGINS

These inanimate objects probably have undergone countless versions, been scrutinized by committees for safety, and have gone through a dizzying maze of logistics to arrive at your home. They are born from companies of all sizes that exist to make a profit somewhere in the supply chain. From these companies are born millions of jobs to satisfy the need of design, manufacturing, distribution, and retail. You benefit from their efforts by acquiring value through the purchased good(s). A symbiotic relationship now exists as both parties benefit from the transaction.

Welcome to the marketplace.

WHO’S WHO

The companies from the above supply chain are either privately or publicly held entities. They exist within the marketplace to acquire profit while successfully leveraging risks. The engine that drives these institutions are individuals who benefit by exchanging their skilled labor for the acquisition of currency. All of these amazing dynamics occur within the “private sector” which contribute to a vibrant society.

QUESTIONS

Why did the marketplace take shape in this manner? Why is it private individuals, via collective groups, that build and distribute things instead of a large, centralized, tax-subsidized federal government? Putting your political biases aside, lets take an honest approach and explore in my next article, Incentive, why the individual is vital to the well-being of any civilized society.

2 Responses So Far... Leave a Reply:

  1. Monica Freemont says:

    Sounds like you are purely laissez-faire theorist. We need regulation in our markets to create a fair playing field so more can equally compete.

    • Matt says:

      Monica,
      Thank for your the comment.
      I believe Government’s role must be limited in order to aspire to the fairest of playing fields. We now find ourselves inside an economy where losers that “are to big to fail” are bailed out by taxpayer dollars. Private citiizen’s that are inactive in their health care choices are looking to be taxed.
      Government’s purpose is only to attain high level interaction. Instead, we find ourselves with greater regulation in our private lives than ever in recent history past.