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Why do finance bros like to call allocating all the resources to the maximal-dollar extracting process "efficient". It's not. All they're doing is turning the e
by programjames 1y ago
Why do finance bros like to call allocating all the resources to the maximal-dollar extracting process "efficient". It's not. All they're doing is turning the economy's entropy into dollar bills now, which stunts future growth.
- jerf 1y agoIn economics, "efficient" doesn't mean "produces maximal dollars". It means something much more like "an efficient economy has no arbitrage opportunities", because they've already been squeezed out. An efficient economy is one in which all the prices are correct, not one in which wealth-creation is maximized. Correct prices may help wealth-creation, but that would be a downstream effect.
- programjames 1y agoI feel like the math term closest to that would be "consistent" not "efficient".