The Freeman 1972 - The Ludwig von Mises Institute

'10PAUL L. POIROTSellers BewareA PLEASANT premise underlyingsocialism is that everyone shouldbe able and willing to pay priceshigh enough to cover costs. Then,no one ever would be obliged towork for less than "a living wage."Such is the foolish dream of personswho do not understand theprocess and the advantages of freetrade.True, oue trades in order togain something of greater valueto him than what he gives up inexchange, and so does every othertrader. Each strives to satisfy hiswants with the least effort or expenditure;but the trader differsfrom socialists for he does not expectanyone else to give up somethingfor nothing.A second significant differencebetween a trader and a socialistconcerns their respective viewsabout money. To a trader, moneyis that particular item of commerceso much more universallyacceptable in trade than otherscarce and valuable items that itserves as a useful medium of exchange.It opens up a far widerrange of market opportunitiesthan could possibly be reachedthrough direct barter. It is usefulas money because the overwhelmingmajority of traders are willingand anxious to accept it in paymentfor their wares.An entirely different concept ofmoney is implied in the languageand philosophy of socialism. Thosewho speak of "a living wage" andof "prices high enough to covercosts" are not thinking about willingcustomers, or of a money that