Tuesday, January 03, 2006

Government Cannot Eradicate Scarcity

In today's South China Morning Post, a story reports that:

"Florists in the popular Mongkok Flower Market have called on the government to help them survive rent increases of up to 60 per cent."

What happens is that the market judges selling flowers no longer is a good idea in the shops now occupied by the florists. What's wrong with that?

Afterall, the visible hand cannot eradicate land scarcity, which is one of the underlying forces which drive up rents in the first place.

1 comment:

Josh said...

A system that operates within scarcity and thrives from it isn't going to do something that would undermine itself. You need to stop operating in the monetary system as it pushes scarcity on you when you should be searching for ways to create abundance.