Economic Thinking 6 of Semiconductor Electronics Industry: Neither Shortage Economy Nor Surplus Econ

Natural selection and competition in human society (such as the definition of property rights) also need rules.Comparing many methods of defining property rights in human society, such as violence, intelligence, generation, age, identity, labor time, random acquisition, distribution on demand, etc., because of different historical factors or natural endowments, the results of defining property rights are impossible to achieve fairness, and often form a "zero sum game"; Only the method of "high and low bid" can produce the result of "positive sum game", although this method can not achieve absolute fairness.At the same time, the social cost of "high and low bid" is the lowest, and the "unnecessary loss" of society is the smallest. In this process, it can "quickly accumulate social wealth" (that is, benefit both or more parties through transactions).

China's decades of economic reform is actually the transformation of "competition rules".In social resources, "scarcity" is a basic fact If a commodity competes by bidding and only by bidding, it will form "scarcity". But "shortage" and "surplus" are not! Both "shortage" and "surplus" are the result of interference by factors other than price Shortage is not the reduction of supply, but the "inhibition" of prices. People can obtain resources only through other ways other than prices (such as queuing, lottery, and relationship); Excess is not oversupply, but the sales "blockage" caused by the deliberate "raising" of prices (such as industry subsidies given by the government).The society of "shortage economy" or "surplus economy" is an inefficient society.

Then, is it necessary to carry out "price control" for "shortage" or "surplus"?In fact, because people have "initiative" and "variability", price regulation will inevitably lead to "value dissipation" of resources; People have the nature of "seeking advantages and avoiding disadvantages". They are pursuing "profit maximization" and "loss minimization". Therefore, the best solution is "the one with the highest price" without unnecessary "price control".