An invisible hand regulates markets?
Supply and demand is one way?
Zhu Biao is more likely to allow himself to understand what Su Jing said. Even if he cannot fully understand it, he must try to memorize it by rote.
This made Zhu Yuanzhang next door have a big headache.
He couldn't understand.
Firstly, I haven’t listened to the previous class, and secondly, it doesn’t sound that clear through the wall.
This made Zhu Yuanzhang very upset.
I didn't even understand what Su Jing was talking about!
Su Jing didn't know this and just continued: "Whether it's the invisible hand or market regulation, it has its own natural drawbacks."
"Niu Yi, do you know what they are?"
Su Jing's teachings were never self-talk, he was guiding Zhu Biao.
Flaws in market regulation?
Zhu Biao recalled the work he had done in the past few days, the information and accounts he had read, and everything else.
After thinking for a while, he replied: "Market adjustment will be slower."
"Master Su said before that it will be too late for the second wave of potato planting, because there will be many people planting it by then."
"And these people grow potatoes because they know that the potato market is popular at this time. When potatoes are planted, the potato market will also change."
Su Jing immediately praised: "Very good! Niu Yi, you are very good at thinking and summarizing!"
"This is indeed one of the drawbacks of market regulation, hysteresis."
"What seems to be a reasonable decision for businessmen at this moment may be lagging behind at the macro level."
"Market adjustment is an after-the-fact adjustment. The supply and demand relationship changes, prices change, and the production of goods adjusts. This process takes time."
"But the disadvantages of market regulation are not limited to this. If you observe carefully, you will find that when a best-selling product appears on the market, the producers engaged in the production of the product will work hard to produce, or the merchants will work hard to hoard it."
"This is another drawback of market regulation, blindness."
"Most individual producers and operators cannot accurately grasp the market prospects from a macro level and can only make judgments based on what they see in front of them, so they are extremely blind."
"Finally, there is another drawback, which is spontaneity."
"Businessmen pursue profit. As long as there is interest, they will swarm there, and resources will accumulate, resulting in unreasonable distribution."
Su Jing said a lot in one breath and stopped to take a sip of tea.
Zhu Biao repeated to himself: "Hysteresis, blindness, spontaneity."
Zhu Yuanzhang next door was so confused. What was Su Jing talking about?
To say that I don't understand it at all is not a big deal.
But if I understand everything, I definitely don’t.
Zhu Yuanzhang was tortured by this half-understanding.
The key point is that if you really don’t know this thing, what’s the use of knowing it?
"Master Su, do you mean that because market regulation has drawbacks, the market cannot just rely on itself to regulate itself."
Zhu Biao raised his head and asked.
Su Jing glanced at Zhu Biao. She, his disciple, had an extraordinary level of thinking.
"A premise should be added. If we want the healthy development of the market economy, market regulation alone is not enough."
Su Jing replied.
Zhu Biao asked again: "Then what else needs to be done?"
"Simple, if the invisible hands can't do it, let the visible hands do it."
Su Jing smiled and said: "The market's own regulation is not easy to use, so let's use external forces to regulate it. The court should do something."
Zhu Biao was stunned for a moment, then suddenly realized: "Master Su is right, this is my Ming Dynasty, the market itself is also subject to the supervision of Ming Dynasty, and it can naturally be adjusted proactively."
"But, what should the court do?"
Zhu Biao found that every time he seemed to realize something, new problems appeared.
And Su Jing seems to be able to answer everything.
Simply a god!
Zhu Yuanzhang, separated by a wall, did not have Zhu Biao's thoughts.
It was all because he looked down upon businessmen and thought that business was a small business that did not produce anything.
Farmers are the foundation, and land and food are even more important.
"Don't worry, you have to eat your food one bite at a time."
Su Jing said calmly: "Understanding the three major drawbacks of market regulation is not enough. We also need to know the natural flaws of pure market regulation in order to prescribe the right medicine."
“Besides the drawbacks of market regulation, are there any natural flaws?”
Zhu Biao was a little confused and didn't quite understand.
Su Jing said: "Of course, the three major drawbacks of spontaneity, blindness and lag just mentioned are actually the drawbacks of self-employed individuals, that is, businessmen, in market regulation."
"And pure market regulation itself also has flaws."
"The simplest and most direct thing is that it is difficult to achieve a balance in the national economy of the entire Ming Dynasty."
"The channels for businessmen to obtain information are limited, and their views on the future market are often biased. Their decision-making is blind. When many businessmen have biases, they will produce blindly, resulting in a surplus or shortage of goods. .”
"When this contradiction reaches a certain level, it will cause economic fluctuations, the wealth of the entire society will be wasted, and productivity will regress."
As Zhu Biao listened, he had new doubts:
"Master Su, the Ming Dynasty relied on farmers to exist. The total economic balance you mentioned seems to be meaningless. For farmers, farming is the only choice."
"The merchants just bought and resold the goods, but the wealth of Ming Dynasty was grabbed by them."
In today's Ming Dynasty, commerce is not developed.
At the same time, feudal society was based on farmers. Food was not only food, but also played the role of currency.
The entire economic structure is quite simple, and the flaws of market regulation are not so obvious.
At the same time, Zhu Biao had a father who looked down on business, so he came to this conclusion under his influence.
"Well said, Biao'er."
When Zhu Yuanzhang heard this, he couldn't help but say hello to his son.
This is my son, Su Jing, how should you answer?
Su Jing was not surprised by Zhu Biao's doubts. In terms of the productivity of contemporary agricultural society, there is not enough food, so how can we produce other things.
Su Jing did not understand Zhu Yuanzhang's emphasis on agriculture and suppression of business.
This is the characteristic of the self-sufficient small-scale peasant economy in feudal society.
In the final analysis, it is still a question of productivity.
But Su Jing also knew that the Ming and Qing Dynasties were important periods for the development of handicraft industry.
Anyway, I am just teaching knowledge, so just be ahead of the curve.
"Niu Yi, you are right, but have you ever thought about why Ming Dynasty must only conduct business within its own territory?"
Su Jing asked rhetorically.
Zhu Biao was stunned, and Su Jing continued: "For example, Zhang Qian of the Western Han Dynasty opened up the Silk Road, and then started trade with the Western Regions."
"Our silk can be sold to people from the Western Regions at prices several times higher, and then we can purchase local cheap and large-volume products from merchants in the Western Regions and bring them back."
"Doesn't this increase wealth?"
"Of course, the remnants of the Northern Yuan Dynasty are still there, and the Silk Road is blocked, but there are also vast overseas trade markets. If the sea can be opened, it will definitely bring huge income to the Ming Dynasty!"
Upon hearing Kaihai, Zhu Biao's expression suddenly changed.
And Zhu Yuanzhang next door was already furious!
