By Luca Einaudi, Riccardo Faucci, Roberto Marchionatti

ISBN-10: 0230522971

ISBN-13: 9780230522978

ISBN-10: 1403947775

ISBN-13: 9781403947772

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Extra resources for Luigi Einaudi: Selected Economic Writings

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If people today insisted on not wanting to pay anything for its use, who would continue to want to set aside savings and use them in order to preserve and continually improve the land? In a few short years – a few years suffice to destroy the work of generations – the land would return to the unproductive, wild state. Second, if nothing were paid for using land to grow cabbages, who would tell us whether that land was better for growing cabbages or potatoes? 6 The market registers demands, not needs, and guides production to correspond with demand We come here to the heart of the discussion.

Similarly, when we speak of goods, for there to be a true market the seller must be able to refuse to sell or the buyer refuse to buy without incurring too large a loss. Certainly, if it is worth it, it is always better to sell or buy immediately rather than to wait; but, within limits, it may be worth waiting. For there to be a true market, however, the two parties must be free not to reach agreement. If the seller has a bulky, heavy good that would cost a fortune to ship back to the warehouse, or fruits and vegetables that will rot if not sold at once, this does not mean that the market no longer exists; it still exists, but for one of the parties it involves risks that need to be considered beforehand to avoid being taken by the throat by the other party.

In my hands, with less bran and Lectures on the Market 43 less meal, which are too expensive, and more hay and grass passed through the fodder-cutter, which are more digestible and less wasted, I would have raised a fine animal and spent less. It isn’t right that he should ask so much simply because he doesn’t know about cows. It could have been sold for L2,100 at the last fair? Is it my fault if he didn’t seize the chance when there were few cows on the market and they were worth a lot? ’ The buyer, therefore, would always like to have abundance, in order to pay a low price for goods.

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Luigi Einaudi: Selected Economic Writings by Luca Einaudi, Riccardo Faucci, Roberto Marchionatti


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