The price mechanism is the single most important element of the market economy

Broken supply-chains are the story of the moment but what I find truly remarkable is that virtually no one any longer understands that it is the price system, and the price system alone that allows the supply-chain to operate. I have discussed this before. This is virtually no longer part of the economics curriculum but if you would like to understand why it matters, there is this that you might find of interest: I, Mechanical Pencil: Why a socialist economy can never work.

This has come to mind having come across this today: “There are only nine meals between mankind and anarchy”. This is the introduction to the article.

Alfred Henry Lewis’ observation dating back to 1896 still rings true. There is a thin line between society and anarchy. It’s thinner than we want to admit.

Here is the final para of the article:

There is a thin line in society, between food and anarchy, freedom and repression, liberty and tyranny, safety and street violence. It’s thinner than we want to admit, and it’s being pushed to its limits on purpose by ideologies that want to deconstruct our society. Tearing down society is a dangerous game.

Absolutely true, but nowhere mentioned in the article is the essential role of the price mechanism in bringing food to your table, along with everything else. It is the price mechanism that makes the capitalist system indispensable. That this is not common knowledge makes our way of life vulnerable to being driven into the sand by socialist loons such as the American President who has done much to undermine the supply-chain networks across the United States.

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