Robinsonomics

A story about a fish hunter and an apple grower settled on a small island:

Once upon a  time there was a small island, populated by two inhabitants. As there wasn’t any working economics they both had to take care about their basics needs – food. That’s why one became a fish hunter and second an apple grower.

Of course both professions were very time consuming so neither of them could spent time by working on anything different. Even if they really wanted because to eat only fishes or apples was not much comfortable.

But once a fish hunter had a great idea he could give up part of his fish production for some apples. Yes dealing was tough, but only they exactly knew how many fishes and apples can be produced and how much of their production they can trade.

When the final deal had been settled trade could start, fish was exchanged for apples. Now there is an interesting question? Who did make a profit? Fish hunter or apple grower?

This small story greatly shows the biggest myth of a human trade. I don’t know why but people still live in the imagination that if they bought for example a new car, seller would became richer and car buyer poorer. But that’s obviously not a reality. Lets look what happen in our small story once again.

Before the trade both islanders ate one kind of food only but after the barter food variety of both rapidly rose. Fish hunter suddenly could eat fishes and apples and because of new vitamin reception he also became more resistant against illnesses.

This year is the 50th anniversary of I, pencil – the small story which greatly described hundreds of small trades during the pencil manufacture. And its horrible to see how are society rules or laws still full of restriction which do harm free market.

Just imagine what would happen in the island if a ruler appeared there and said: “apples are so great that they should be very cheap in order to be available for everybody because as we know they increase fish production and supply body with vitamins”

But have you thought about an apple growers? Their incomes would  rapidly slump, their possibilities to refresh production either, meaning next season we could expect less apples in markets and that’s funny because the intention was exactly opposite.

Yes anybody has never beaten the free market yet.

Exchange is a voluntary action between two sides without damaging any nonparticipants. It does mean both side will profit from this transaction. Theft is an enforced property appropriation which only redistribute wealth – does not increase global level of living.

As you can see for the free market is important private ownership (to understand what is a theft) but it’s definition is not a problem of our two Robinsons, but problem of the capitalism ….