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<?xml-stylesheet type="text/xsl" href="https://archive.freecapitalists.org:443/utility/FeedStylesheets/rss.xsl" media="screen"?><rss version="2.0" xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:slash="http://purl.org/rss/1.0/modules/slash/" xmlns:wfw="http://wellformedweb.org/CommentAPI/"><channel><title>Economics Questions</title><link>https://archive.freecapitalists.org:443/forums/5.aspx</link><description /><dc:language>en</dc:language><generator>CommunityServer 2008.5 SP2 (Build: 40407.4157)</generator><item><title>Re: Humans ARE Smarter than Yeast</title><link>https://archive.freecapitalists.org:443/forums/thread/82884.aspx</link><pubDate>Sat, 24 Jan 2009 04:58:06 GMT</pubDate><guid isPermaLink="false">944abf2b-d1be-4bf2-990d-438cb0e377e9:82884</guid><dc:creator>ama gi</dc:creator><slash:comments>0</slash:comments><comments>https://archive.freecapitalists.org:443/forums/thread/82884.aspx</comments><wfw:commentRss>https://archive.freecapitalists.org:443/forums/commentrss.aspx?SectionID=5&amp;PostID=82884</wfw:commentRss><description>&lt;p&gt;&lt;blockquote&gt;&lt;div&gt;&lt;img src="https://archive.freecapitalists.org:443/Themes/mises2008/images/icon-quote.gif"&gt; &lt;strong&gt;Solomon:&lt;/strong&gt;&lt;/div&gt;&lt;div&gt;&lt;/p&gt;
&lt;p&gt;&lt;blockquote&gt;&lt;div&gt;&lt;img src="https://archive.freecapitalists.org:443/Themes/mises2008/images/icon-quote.gif"&gt; &lt;strong&gt;Thedesolateone:&lt;/strong&gt;&lt;/div&gt;&lt;div&gt;&lt;blockquote&gt;&lt;div&gt;&lt;img src="https://archive.freecapitalists.org:443/Themes/mises2008/images/icon-quote.gif"&gt; &lt;strong&gt;ama gi:&lt;/strong&gt;&lt;/div&gt;&lt;div&gt;
&lt;/p&gt;
&lt;p&gt;&lt;blockquote&gt;&lt;div&gt;&lt;img src="https://archive.freecapitalists.org:443/Themes/mises2008/images/icon-quote.gif"&gt; &lt;strong&gt;Sage:&lt;/strong&gt;&lt;/div&gt;&lt;div&gt;Now, if humans really were like yeast, this would be a frightening scenario.&lt;span id="more-237"&gt;&lt;/span&gt; But fortunately for us humans, we are not mindless bacteria.&lt;/div&gt;&lt;/blockquote&gt;&lt;/p&gt;
&lt;p&gt;I&amp;#39;m pretty sure brewer&amp;#39;s yeast is a fungi, not a bacteria.&lt;/p&gt;
&lt;div style="CLEAR:both;"&gt;&lt;/div&gt;
&lt;p&gt;&lt;/div&gt;&lt;/blockquote&gt;&lt;/p&gt;
&lt;p&gt;Pedant &lt;img src="http://mises.org/Community/emoticons/emotion-4.gif" alt="Stick out tongue" /&gt;&lt;/div&gt;&lt;/blockquote&gt;&lt;/p&gt;
&lt;p&gt;Anti-intellectual&lt;img src="http://mises.org/Community/emoticons/emotion-4.gif" alt="Stick out tongue" /&gt;&lt;/p&gt;
&lt;p&gt;&amp;nbsp;&lt;/p&gt;
&lt;div style="clear:both;"&gt;&lt;/div&gt;
&lt;p&gt;&lt;/div&gt;&lt;/blockquote&gt;&lt;/p&gt;
&lt;p&gt;lol&lt;/p&gt;&lt;div style="clear:both;"&gt;&lt;/div&gt;</description></item><item><title>Re: Humans ARE Smarter than Yeast</title><link>https://archive.freecapitalists.org:443/forums/thread/82882.aspx</link><pubDate>Sat, 24 Jan 2009 04:47:52 GMT</pubDate><guid isPermaLink="false">944abf2b-d1be-4bf2-990d-438cb0e377e9:82882</guid><dc:creator>Solomon</dc:creator><slash:comments>0</slash:comments><comments>https://archive.freecapitalists.org:443/forums/thread/82882.aspx</comments><wfw:commentRss>https://archive.freecapitalists.org:443/forums/commentrss.aspx?SectionID=5&amp;PostID=82882</wfw:commentRss><description>&lt;p&gt;&lt;blockquote&gt;&lt;div&gt;&lt;img src="https://archive.freecapitalists.org:443/Themes/mises2008/images/icon-quote.gif"&gt; &lt;strong&gt;Thedesolateone:&lt;/strong&gt;&lt;/div&gt;&lt;div&gt;&lt;blockquote&gt;&lt;div&gt;&lt;img src="https://archive.freecapitalists.org:443/Themes/mises2008/images/icon-quote.gif"&gt; &lt;strong&gt;ama gi:&lt;/strong&gt;&lt;/div&gt;&lt;div&gt;
&lt;p&gt;&lt;blockquote&gt;&lt;div&gt;&lt;img src="https://archive.freecapitalists.org:443/Themes/mises2008/images/icon-quote.gif"&gt; &lt;strong&gt;Sage:&lt;/strong&gt;&lt;/div&gt;&lt;div&gt;Now, if humans really were like yeast, this would be a frightening scenario.&lt;span id="more-237"&gt;&lt;/span&gt; But fortunately for us humans, we are not mindless bacteria.&lt;/div&gt;&lt;/blockquote&gt;&lt;/p&gt;
&lt;p&gt;I&amp;#39;m pretty sure brewer&amp;#39;s yeast is a fungi, not a bacteria.&lt;/p&gt;
&lt;div style="CLEAR:both;"&gt;&lt;/div&gt;
&lt;p&gt;&lt;/div&gt;&lt;/blockquote&gt;&lt;/p&gt;
&lt;p&gt;Pedant &lt;img src="http://mises.org/Community/emoticons/emotion-4.gif" alt="Stick out tongue" /&gt;&lt;/div&gt;&lt;/blockquote&gt;&lt;/p&gt;
&lt;p&gt;Anti-intellectual&lt;img src="http://mises.org/Community/emoticons/emotion-4.gif" alt="Stick out tongue" /&gt;&lt;/p&gt;
&lt;/p&gt;&lt;div style="clear:both;"&gt;&lt;/div&gt;</description></item><item><title>Re: Humans ARE Smarter than Yeast</title><link>https://archive.freecapitalists.org:443/forums/thread/82789.aspx</link><pubDate>Sat, 24 Jan 2009 02:16:06 GMT</pubDate><guid isPermaLink="false">944abf2b-d1be-4bf2-990d-438cb0e377e9:82789</guid><dc:creator>Sage</dc:creator><slash:comments>0</slash:comments><comments>https://archive.freecapitalists.org:443/forums/thread/82789.aspx</comments><wfw:commentRss>https://archive.freecapitalists.org:443/forums/commentrss.aspx?SectionID=5&amp;PostID=82789</wfw:commentRss><description>&lt;p&gt;&lt;blockquote&gt;&lt;div&gt;&lt;img src="https://archive.freecapitalists.org:443/Themes/mises2008/images/icon-quote.gif"&gt; &lt;strong&gt;GilesStratton:&lt;/strong&gt;&lt;/div&gt;&lt;div&gt;&lt;/p&gt;
&lt;p&gt;You have a blog for a reason, no?&lt;/p&gt;
&lt;div style="clear:both;"&gt;&lt;/div&gt;
&lt;p&gt;&lt;/div&gt;&lt;/blockquote&gt;&lt;/p&gt;
&lt;p&gt;Well, I think people here would be interested in my writings, and I value what they have to say.&lt;/p&gt;&lt;div style="clear:both;"&gt;&lt;/div&gt;</description></item><item><title>Re: Humans ARE Smarter than Yeast</title><link>https://archive.freecapitalists.org:443/forums/thread/82770.aspx</link><pubDate>Sat, 24 Jan 2009 01:20:05 GMT</pubDate><guid isPermaLink="false">944abf2b-d1be-4bf2-990d-438cb0e377e9:82770</guid><dc:creator>Thedesolateone</dc:creator><slash:comments>0</slash:comments><comments>https://archive.freecapitalists.org:443/forums/thread/82770.aspx</comments><wfw:commentRss>https://archive.freecapitalists.org:443/forums/commentrss.aspx?SectionID=5&amp;PostID=82770</wfw:commentRss><description>&lt;p&gt;&lt;blockquote&gt;&lt;div&gt;&lt;img src="https://archive.freecapitalists.org:443/Themes/mises2008/images/icon-quote.gif"&gt; &lt;strong&gt;ama gi:&lt;/strong&gt;&lt;/div&gt;&lt;div&gt;&lt;/p&gt;
&lt;p&gt;&lt;blockquote&gt;&lt;div&gt;&lt;img src="https://archive.freecapitalists.org:443/Themes/mises2008/images/icon-quote.gif"&gt; &lt;strong&gt;Sage:&lt;/strong&gt;&lt;/div&gt;&lt;div&gt;Now, if humans really were like yeast, this would be a frightening scenario.&lt;span id="more-237"&gt;&lt;/span&gt;
But fortunately for us humans, we are not mindless bacteria.&lt;/div&gt;&lt;/blockquote&gt;&lt;/p&gt;
&lt;p&gt;I&amp;#39;m pretty sure brewer&amp;#39;s yeast is a fungi, not a bacteria.&lt;/p&gt;
&lt;div style="clear:both;"&gt;&lt;/div&gt;
&lt;p&gt;&lt;/div&gt;&lt;/blockquote&gt;&lt;/p&gt;
&lt;p&gt;Pedant &lt;img src="http://mises.org/Community/emoticons/emotion-4.gif" alt="Stick out tongue" /&gt;&lt;/p&gt;&lt;div style="clear:both;"&gt;&lt;/div&gt;</description></item><item><title>Re: Humans ARE Smarter than Yeast</title><link>https://archive.freecapitalists.org:443/forums/thread/82753.aspx</link><pubDate>Sat, 24 Jan 2009 00:47:16 GMT</pubDate><guid isPermaLink="false">944abf2b-d1be-4bf2-990d-438cb0e377e9:82753</guid><dc:creator>ama gi</dc:creator><slash:comments>0</slash:comments><comments>https://archive.freecapitalists.org:443/forums/thread/82753.aspx</comments><wfw:commentRss>https://archive.freecapitalists.org:443/forums/commentrss.aspx?SectionID=5&amp;PostID=82753</wfw:commentRss><description>&lt;p&gt;&lt;blockquote&gt;&lt;div&gt;&lt;img src="https://archive.freecapitalists.org:443/Themes/mises2008/images/icon-quote.gif"&gt; &lt;strong&gt;Sage:&lt;/strong&gt;&lt;/div&gt;&lt;div&gt;Now, if humans really were like yeast, this would be a frightening scenario.&lt;span id="more-237"&gt;&lt;/span&gt;
But fortunately for us humans, we are not mindless bacteria.&lt;/div&gt;&lt;/blockquote&gt;&lt;/p&gt;
&lt;p&gt;I&amp;#39;m pretty sure brewer&amp;#39;s yeast is a fungi, not a bacteria.&lt;/p&gt;&lt;div style="clear:both;"&gt;&lt;/div&gt;</description></item><item><title>Re: Humans ARE Smarter than Yeast</title><link>https://archive.freecapitalists.org:443/forums/thread/82695.aspx</link><pubDate>Fri, 23 Jan 2009 23:20:42 GMT</pubDate><guid isPermaLink="false">944abf2b-d1be-4bf2-990d-438cb0e377e9:82695</guid><dc:creator>liberty student</dc:creator><slash:comments>0</slash:comments><comments>https://archive.freecapitalists.org:443/forums/thread/82695.aspx</comments><wfw:commentRss>https://archive.freecapitalists.org:443/forums/commentrss.aspx?SectionID=5&amp;PostID=82695</wfw:commentRss><description>&lt;p&gt;I don&amp;#39;t mind his cross posts.&lt;/p&gt;&lt;div style="clear:both;"&gt;&lt;/div&gt;</description></item><item><title>Re: Humans ARE Smarter than Yeast</title><link>https://archive.freecapitalists.org:443/forums/thread/82658.aspx</link><pubDate>Fri, 23 Jan 2009 22:44:25 GMT</pubDate><guid isPermaLink="false">944abf2b-d1be-4bf2-990d-438cb0e377e9:82658</guid><dc:creator>hayekianxyz</dc:creator><slash:comments>0</slash:comments><comments>https://archive.freecapitalists.org:443/forums/thread/82658.aspx</comments><wfw:commentRss>https://archive.freecapitalists.org:443/forums/commentrss.aspx?SectionID=5&amp;PostID=82658</wfw:commentRss><description>&lt;p&gt;You have a blog for a reason, no?&lt;/p&gt;&lt;div style="clear:both;"&gt;&lt;/div&gt;</description></item><item><title>Humans ARE Smarter than Yeast</title><link>https://archive.freecapitalists.org:443/forums/thread/82652.aspx</link><pubDate>Fri, 23 Jan 2009 22:40:11 GMT</pubDate><guid isPermaLink="false">944abf2b-d1be-4bf2-990d-438cb0e377e9:82652</guid><dc:creator>Sage</dc:creator><slash:comments>0</slash:comments><comments>https://archive.freecapitalists.org:443/forums/thread/82652.aspx</comments><wfw:commentRss>https://archive.freecapitalists.org:443/forums/commentrss.aspx?SectionID=5&amp;PostID=82652</wfw:commentRss><description>&lt;p&gt;[Cross-posted at &lt;a target="_blank" href="http://libertariananarchy.com/2009/01/humans-are-smarter-than-yeast/"&gt;Libertarian Anarchy&lt;/a&gt;]&lt;/p&gt;
&lt;p&gt;Are humans smarter than yeast? In &lt;a target="_blank" id="v::e" title="this interview" href="http://www.youtube.com/watch?v=osbQ9UHMAvY&amp;amp;feature=related"&gt;this interview&lt;/a&gt; about peak oil, Richard Heinberg tries to show us a parallel between yeast and humans:&lt;/p&gt;
&lt;blockquote&gt;
&lt;p&gt;&amp;ldquo;If we put yeast in a bottle of grape juice, they&amp;rsquo;d be
eating up the sugar in the grape juice, consuming their energy source,
and at the same time they&amp;rsquo;d be giving off a waste product, namely
alcohol, which would be poisoning them. So their numbers would
proliferate until they ate up their energy sources and poisoned
themselves with their waste product, and then they&amp;rsquo;d have a die-off.
Were doing exactly the same thing with fossil fuels: we&amp;rsquo;re eating up
our energy source as fast as we can, and we&amp;rsquo;re polluting our
environment with the waste product. So, are we smarter than yeast?
That&amp;rsquo;s the question.&amp;rdquo;&lt;/p&gt;
&lt;/blockquote&gt;
&lt;p&gt;Now, if humans really were like yeast, this would be a frightening scenario.&lt;span id="more-237"&gt;&lt;/span&gt;
But fortunately for us humans, we are not mindless bacteria. Instead,
we are acting humans. We choose. We have purposes. We use means to
achieve ends. Yeast do not have free will, do not use means to achieve
ends, and hence cannot act.&lt;/p&gt;
&lt;p&gt;When humans cooperate with each other to live in society, their
actions are governed by the immutable laws of economics. The most basic
laws are those of supply and demand:&lt;/p&gt;
&lt;p&gt;If demand for a good increases, or if the good&amp;rsquo;s supply decreases,
its price will be higher than it otherwise would have been.
Consequently, the higher price will discourage demand while encouraging
increased supply. Conversely, if demand for a good falls or if the
good&amp;rsquo;s supply rises, its price will be lower than otherwise. As a
result, the lower price will encourage increased demand while
discouraging supply. On a freed market these incentives create a
tendency for supply to equal demand.&lt;/p&gt;
&lt;p&gt;This is just common sense. Superbowl tickets are expensive because a
lot of people want them; but the high price discourages uninterested
fans. When gas prices skyrocket, we cut back on driving. When
strawberries are in season, the price falls, and we buy more of them.
These are all examples of supply and demand in everyday life.&lt;/p&gt;
&lt;p&gt;So what does this have to do with fossil fuels? If humans are
&amp;ldquo;eating up our energy source as fast as we can&amp;rdquo;, then the supply will
fall, causing the price to rise. The higher price will discourage
consumption and provide incentives for people to increase the supply &amp;mdash;
either through conserving the resource, discovering new supply,
inventing new technology, or by substituting different resources. Even
though humans are using up resources, the price system &amp;mdash; manifested in
human action &amp;mdash; automatically responds to a shortage by creating
incentives for people to increase the supply. Scarcity creates
incentives for abundance. Humans will not use up all their resources
and experience a die-off because, through the marvel of the price
system, resources are allocated to reflect supply and demand.&lt;/p&gt;
&lt;p&gt;Even in the worst case scenario where no new resources are
discovered, no new technologies are invented, and no substitutes are
found, a die-off very unlikely. The laws of supply and demand will
still apply. As resources become more and more scarce, the price will
rise, and people will have to change their lifestyle to reflect the
&amp;ldquo;post-carbon&amp;rdquo; reality. Peak-oilers talk about the necessity of
&amp;ldquo;post-carbon communities&amp;rdquo;. What they don&amp;rsquo;t realize is that if oil does
run out, it will be &lt;em&gt;market forces&lt;/em&gt; that lead to urban gardening, walkable communities, re-localization, and the rest of the post-carbon lifestyle.&lt;/p&gt;
&lt;p&gt;Of course, this is only true for the price system of a freed market.
If government violently intervenes in the economy and prevents or
distorts the functioning of the price system, then even the wildest
doomsday predictions of socio-economic collapse might come true. Peak
oil is a very real problem for statism, and is another reason for the
separation of society and State.&lt;/p&gt;
&lt;p&gt;Heinberg&amp;rsquo;s analogy breaks down because humans can allocate resources
through the market price system, whereas yeast cannot. Yeast will
mindlessly deplete their energy source and experience a die-off.
Humans, when faced by scarcity, will &lt;em&gt;react&lt;/em&gt; to high prices by finding new resources or changing their behavior. This is the core difference: humans act, yeast don&amp;rsquo;t.&lt;/p&gt;
&lt;p&gt;Thus, humans &lt;em&gt;are&lt;/em&gt; smarter than yeast. However, we must qualify that statement: When it comes to economics, some humans are &lt;em&gt;not &lt;/em&gt;smarter than yeast.&lt;/p&gt;&lt;div style="clear:both;"&gt;&lt;/div&gt;</description></item></channel></rss>