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From: friesen@psivax.UUCP (Stanley Friesen)
Newsgroups: net.politics.theory
Subject: Re: Health Care, Wonderful Market for
Message-ID: <784@psivax.UUCP>
Date: Tue, 8-Oct-85 15:52:00 EDT
Article-I.D.: psivax.784
Posted: Tue Oct  8 15:52:00 1985
Date-Received: Sat, 12-Oct-85 21:24:34 EDT
References: <204@gargoyle.UUCP>
Reply-To: friesen@psivax.UUCP (Stanley Friesen)
Organization: Pacesetter Systems Inc., Sylmar, CA
Lines: 46
Summary: 

In article <204@gargoyle.UUCP> carnes@gargoyle.UUCP (Richard Carnes) writes:
>First some preliminaries:
>
>
>A new libertarian equivalency!  Feudalism = socialism.  I suggest you
>look up "feudalism" and "socialism" in an encyclopedia, preferably a
>scholarly work such as *The International Encyclopedia of the Social
>Sciences*.

	I agree, the two are not really equivalent, but I can
understand how someone might get that impression. *European* feudalism
at the *village* level was essentially socialistic in organization. Of
course that is not true of other feudalistic cultures, so there is no
real relationship.
>
>On to the main topic:
>
	In general I found this to be a well written article, however,
I have a couple of questions.

>You would have a stronger case if you said that the fundamental
>theorems of welfare economics show that the free market, if it
>fulfills certain conditions such as perfect competition, always
>results in a *Pareto-optimal* outcome.  But if you say this, you run
>into some serious problems.
>
	I would like to see the definition of pareto-optimal.

>Second, Arrow's Theorem proves that not all social decisions can be
>rationally based on individual preferences alone.  Try doing it for
>Condorcet's voting paradox.  So inevitably someone will have to
>decide, either dictatorially or through the dreaded value judgment.
>You can't escape the problem of "Who decides?" by means of the free
>market.
>
	Could you state Arrow's Theorem and Condorcet's Voting
Paradox?

	I ask because I have had little training in economics and I do
not understand these terms. I would appreciate help.
-- 

				Sarima (Stanley Friesen)

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