High Bid Wins
An economy purely controlled by the people is a gigantic auction and these are its rules.
- The auctioneer decides.
- Money conveys authority.
- Anyone may bid.
- Bids are binding.
- High bid wins.
Who establishes prices? People. Who determines the final Price a good or service will be? An agreement between the auctioneer/seller and bidder/buyer. The one who offered more money wins. All of this is propelled by an auctioneer’s desire of more money and a buyer who needs or wants what the auctioneer has. Both have what each other long for. The buyer thus has the power to control the auctioneer’s decisions with the voice of money and the auctioneer has the power to seek higher prices by not yet giving away his product. “100 dollars!” “Does anyone offer more?” “110 dollars!” “Does anyone offer more? Going once, going twice, sold!” And the product was a pizza.
It is a voluntary transaction between two sides. One side prefers 110 dollars more than a pizza and the other side prefers a pizza more than 110 dollars. Many might say, that it is an unfair price for a pizza that began at 20 dollars, but that is what someone valued it for in a place were there was a scarcity of pizza and for that amount of money the auctioneer was ultimately willing to give it away for.
Then, the person who bought the pizza will auction its twelve slices one by one. He will start each slice at 12 dollars. Each auction he holds will give each slice a different price depending on how much money the bidders at each auction have or are willing to give for the slice of pizza. Say in one bidding a slice will end in 30 dollars, in a second bidding at 20 dollars, in a third at 23 dollars, and so on.
First Come, First Served
In this economic system, a chief chooses who gets what and at what time. It is the system of lining up. Here the only moment someone uses a will freely is the moment of lining up. You choose to line up and the speed at which you do it determines your spot in the line. Once you have chosen the spot, the chief will assign it to you and you will not be able to change it. The ones that are ahead of you might get to choose the better things with greater quality or collective value.
It is like in a school. The teacher is the chief who orders you must line up that he or she may take you to wherever you are going or give you whatever they are giving in a controlled environment free of chaos. The people in the line are easy to control because it is easy to see who is being rebellious. Maybe you are going to recess and you can get first to the swings if you are first in line or maybe to get some lunch and you will get to eat first. It doesn’t matter where you are going or what you are getting, the point is that the chief is your authority and you cannot do anything beyond his word. Here the mutual or forced agreement is, the chief will give the orders and you have to do whatever he says.