Simon_Jester wrote:MoO, you're being foolish. The fact remains that in a very real sense, food is not a luxury. You may, if you are lucky, have the option of choosing one kind of food over another. You do not have the option of choosing to abstain from food entirely. Likewise water or air. You don't really have the choice of abstaining from shelter either.
That is Formless's point: that there exist commodities where the buyer's need for the item is greatly out of proportion to the seller's need to sell it. Or vice versa. In these situations, market-fundamentalist models that are designed to track the price of luxuries like lattes and iPods do not, and can not, apply.
So... in Formless' world, we would expect to see people who sold things like food to be able to charge fundamentally limitless prices for such products. Yet... McDonald's charges something like $7 for a value meal. That might be rated as "expensive," depending on your frame of reference I suppose, but it's hardly infinite and certainly doesn't constitute a substantial fraction of the total net worth of most of their customers (in fact, I'd be hard pressed to find or even conceive of
any food supplier who regularly sold their wares at prices which regularly rivaled the net worth of their customers). Ergo, supply and demand seems a much better explanatory model for this situation than Formless'... formless theory.
Your claim that "there exist commodities [for which] market-fundamentalist models... do not, and can[]not, apply" is utterly baseless, at least on the examples advanced to illustrate this claim. Anyone can observe that "market-fundamentalist models" operate very well in situations like this. Indeed, wheat is still one of the markets which is held up as an example of a perfectly competitive market. For that matter, water-diamond paradox is precisely what you are arguing (you cannot go without water, either, so why is it less expensive than diamonds?). I acknowledge that there are situations in which market forces are impeded for both good and for ill, but it's a far step from that to arguing that, therefore, they should not be used to model things at all.
Speaking for myself, I understand this, and think it's fundamentally wrong- obviously so. Money is NOT a proxy for what people are willing to give up to receive something in return. It is a proxy for what they are both willing and able to give up to receive something in return.
That is a distinction without a difference, particularly in a society with a functioning capital system that alleviates things like liquidity concerns.
That "and able" aspect is important, because Surlethe relies on utilitarianism in his argument Utilitarianism is based on preferences, though, and preferences don't change when the number of available dollars changes.
Right, because everyone knows that indifference curves only differ by a constant term as they move outwards or inwards.
While you are much more sophisticated than Formless in that you can actually type in complete sentences and appear to recognize the existence of logical links between statements, you also miss the point of Surlethe's model.
Letting someone die violates their preferences just as much when they have no money as it does when they have a mountain of money. The amount of money they have does not affect their preferences,
Hello non sequitur.
and is therefore irrelevant in utilitarianism... which means that the premise of the argument undermines the argument itself. The only way to avoid that is to randomly decide, for the sheer love of doing so, to add an extra term to our utility function that measures how much money someone has and weight their preferences according to their ability to implement those preferences.
Why is this "for the sheer love of doing so?" The concept of an income constraint is
fundamental to the understanding of a utility curve. Without an income constraint, it wouldn't model anything at all.
Which, again, makes no sense. It is an arbitrary and pointless thing to do, and it in no way improves a moral system to do it.
Excuse me? It's fundamental to the model. Who the fuck cares if someone prefers apples to oranges if oranges have been entirely removed from the possible consumption options available to them?
But, once again, the premise itself is deeply flawed, and Formless recognizes this even if he's not quite hitting the nail on the head as well as one might wish.
You cannot simply declare that the cash-equivalent-cost of something is, objectively, its value.
Provide another objective measure of value.
There are too many random or irrational factors that influence cash-equivalent cost: hyperbolic discounting, various forms of trickery, random natural events, and so forth.
How does any of this make the market price anything other than "objective?"
It is a serious question: you apparently do not understand the resolution to the water-diamond paradox, and just as Formless' lack of comprehension drove his criticisms of Surlethe's model, so too does your misunderstanding of a utility function appear to prevent you from fairly evaluating it.
In other words, they are more valuable to society than anyone else: this was evaluated in a competitive market by a society which placed a premium on the services that they offered vis-a-vis the services offered by others.
Finally, even if we conclude that this is true... why do we care? Why, objectively, are we better off for treating such people as "more valuable to society?" What useful objective is fulfilled?
It allows us to better allocate resources amongst society. Take a simple example: I have recently sprained my ankle. I walk into a local doctor's office to ask him to take a look at it, make sure nothing serious is going on, and to treat it for me. While I'm sitting in the waiting room, Tiger Woods hobbles in and sits down next to me. As it so happens, Mr. Woods has also injured his ankle, recently. How do we decide who the doctor should treat first? Surely the analysis should have something to do with Tiger's reliance on his ankle for his job, but what if I were a tennis pro at the local club who also relies upon my ankle in order to make a living? How should society allocate the scarce resources (the doctor's attention) between the two of us?
Within the confines of this situation, there are several obvious and easy solutions: Tiger could offer me a "bribe" to let him go, first. Or we could let the doctor sort it out by placing bids at auction. Whichever way we solve the problem, though, Tiger ought to go first (or to receive better treatment, or however you want to set up the situation) precisely because his ankle is more valuable than mine and because this is illustrated by his higher earnings.
Regardless, society as a whole is better off if Tiger Woods is treated first, even if it turns out that we have identical injuries and even if I was in the waiting room before he was. Having an efficient rationing system based on price is much better than a lottery system, a first-come; first-serve, or any other rationing system that I can easily envision. Perhaps you have another alternative?
How is this system an instrumental good?
It effectively and efficiently allocates scarce resources across a broad range of circumstances, albeit not in all of them.