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From: mck@ratex.UUCP (Daniel Kian Mc Kiernan)
Newsgroups: net.politics.theory
Subject: Economic Issues -- Reply to Sevener
Message-ID: <997@ratex.UUCP>
Date: Mon, 25-Mar-85 17:28:11 EST
Article-I.D.: ratex.997
Posted: Mon Mar 25 17:28:11 1985
Date-Received: Tue, 26-Mar-85 05:44:02 EST
Organization: Squids R Us
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The exceptionally verbose tim sevener seems thrilled with himself over the
realization that 'in the real world *every* product involves some degree of
natural monopoly because it cannot be totally replaced by another product'
(he is, in fact, so thrilled with himself that he cannot refrain from
making this point ad nauseum).  Perhaps he will some day note that the
planetary orbits are not truly elliptical, and pontificate at great length
in net.physics.  Sevener notes that substitution entails costs, that some
substitutions entail great costs, and that monopoly in the production of
the relevant goods could entail problems.  This in no way contradicts the
comments that sevener was responding to (videlicet: 'Mr Torek asks about
the case of natural monopoly, suggesting that perhaps I find it unreal or
unproblematic.  Indeed, I do.  For a natural monopoly to present a
problem, it would have to have exclusive ability to produce a vital product
for which there are no feasible substitutes.').  That a hypothetical case
(a petroleum monopoly) would present a problem does not mean that there
exists (or even can exist) a problem (an attack by technologically
advanced Venerians would also present a problem).
     Sevener also objects to models of smooth supply and demand curves, but
adds that he has 'not read current economic journals in a long time'.  More
to the point: He is not really very familiar with economics as it was, is,
or will be.  There are certainly economists who are overly enamoured with
mathematical models, but there have always been economists who have raised
angry objections; in fact, the Austrians (to whom I have repeatedly
referred) have been the most persistent in objecting!  (I would note that
NONE of the supply-and-demand analysis that I have engaged in depends on an
assumption of smooth curves!)
     
>          "A rose is a rose is a daffodil" saith the economist

"Mine enemeies think that which I doth wish them to think, else I would be
faced by more than my mind could grasp, and adrift in a sea of truth
without the rudder of logick!" saith the sevener.

                                        Back later,
                                        DKMcK