Thursday, July 7, 2011

Gain and Loss

Everyone seems to believe that one man's gain must be another man's loss. The only exception they allow is government action in which case the poor gain and somehow, nobody loses. Well, maybe some rich pigs get taxed, but we hate them anyway.
Reality is precisely the opposite: unless coercive forces like the government get involved, people only interact by choice. Every exchange has expected gains for all parties. You can tell that they expected to gain because if someone expected to lose, they wouldn't have participated.