more from Jonathan Wolff

Single Idea 20524

[catalogued under 25. Social Practice / A. Freedoms / 4. Free market]

Full Idea

The price system is a way of signalling and transmitting information. The fact that the price of a good rises shows that the good is in short supply. And if prices rise in a sector because of increasing demand, then new producers rush in for the profits.

Gist of Idea

Market prices indicate shortages and gluts, and where the profits are to be made


Jonathan Wolff (An Introduction to Political Philosophy (Rev) [2006], 5 'Free')

Book Reference

Wolff,Jonathan: 'An Introduction to Political Philosophy (Rev)' [OUP 2006], p.145

A Reaction

[Woff is discussing Hayek] Why do we have a shortage of decent housing in the UK? Centralised economies lack this direct way of discovering where their efforts should be directed.