Quote:
Originally Posted by
SDW2001 
MJ: "SDW, why do you distrust the market so?"
Don't recall the date, but it was within the last few months.
You are taking a statement out of context and mis-applying here. I think you probably know that. When I said that, I was referring to your advocacy of government solutions vs. market solutions for a number of things that I believe can be achieve with private, market-based solutions. I am not advocating any government solutions here. I'm not even saying that the choices made by market participants is "wrong" (that would be profoundly arrogant of me).
In this case you are implying that my response to you indicates my own mistrust of the market. That is completely untrue.
My response to you here was merely to be careful about applying a subjective qualitative characterization (e.g., "good" vs. "bad") to something merely because a lot of people like it (or buy it or use it or buy it). It is an analytical mistake to do so. There are a number of individualized factors that go into buying decisions and the quality ("goodness" or "badness") of the product or service is only one aspect.
Most importantly, none of why I said has anything to do with not trusting the market. That would be a valid statement if I had said something like "Clearly the market isn't making a good choice, so the government ought to step in to bail out MSNBC and CNN to save them from financial ruin." or, worse.
Quote:
Originally Posted by
SDW2001 
In any case, doesn't the market know quality?
The "market" is not a person. Don't anthropomorphize it. It is merely the name we give to the conditions in which people are freely buying and selling goods and services.
Does the market "know" quality? Not necessarily. All I have said is that a given market outcome only tells us what people's (market participant's) choices have been. Those people may have chosen things that are of higher quality or lower quality (based on whatever criteria one wishes to evaluate quality). McDonald's sells more hamburgers than anyone else in the world. Are these hamburgers "better" than, say, something from Red Robin? Probably not. But that merely means that people are making a choice based on a different mix of values (quality, convenience, time, cost, availability, etc.)
Quote:
Originally Posted by
SDW2001 
We're talking about people essentially purchasing a product (in the end, that's what it is).
I know that. What I'm saying is that just because some larger group purchases some product or service doesn't necessarily mean it is "better", only that more people have bought it.
More people voted for Barack Obama than John McCain (and may that for Mitt Romney). According to your reasoning, that would make Barack Obama a better candidate. Right?
Quote:
Originally Posted by
SDW2001 
FOX kicks the living shit out of MSNBC and CNN. Is that because there are simply that many more conservatives who watch cable news?
Possibly. Could be that there are people that don't even agree with Fox that watch it. I don't know what the audience breakdown is. But there again...this isn't about whether something is "good" or "bad" but rather what the viewer's/purchaser's personal preferences are. That's all that we can say definitively and relatively objectively about this outcome.
Quote:
Originally Posted by
SDW2001 
If Fox was "bad," it wouldn't be embraced by the market. It's no different with any product. People don't buy crappy cars when they have other choices, the same way people that don't watch MSNBC when they have other options.
I disagree. There may be other reasons why people have chosen to watch Fox vs. the others that may have little to do with it's quality.
Now, mind you, I'm not saying that Fox isn't good...merely that it isn't merely good by virtue of its ratings. We don't really know why people have chosen to watch it.
Does this make sense?
Edited by MJ1970 - 7/19/12 at 7:06am