How does the economy communicate with itself?

The economy communicates with itself, not with human beings or companies. But how? Here is a discussion of the question, What Does the Price System Communicate? One quote is

Prices communicate relative scarcities.

Prices are the symbolic communication medium of the economic system. The economy communicate with itself through prices. The post by Peter Boettke calls economic communication a metaphor, but I don’t think it’s a metaphor. By calling it a metaphor Boettke seems to be using human communication as a model. The assumption seems to be that human communication is the paradigmatic case, and any other use of the word communication is metaphorical or judged by the standards of human communication. Sure, the economy doesn’t communicate like people do, but why do we have to take human communication as the model of communication? By saying “Prices communicate relative scarcities,” he is saying that prices communicate relative scarcity to human beings, or to “economic actors.” This is what I don’t agree with. I don’t think the economy can communicate with human beings at all. Its communication is intrasystemic. People can communicate about the economy but not with the economy.

Advertisements
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s