December 2, 2005:
Ideologists say that Capitalism is more efficient than other potential systems. This is a religion, not a rational position.
Imagine this simple circumstance. A car has a dented door, a dented wheel, and a broken front suspension system. Repairs will run about $5,000. But, because the market value of the vehicle is just about that same $5,000, insurance considers it to be a total loss. Nevermind that it could run for another 100,000 miles if people would stop crashing into it.
Skinny boy with long hair raises his hand in class.
"The theory says that prices are determined by imbalances between supply and demand. That being the case, what happens when there is no imbalance? By definition, the price would be undetermined. What does that mean? Would it be zero? Infinitely high? Or random?"
The professor, elderly and pedantic, stares. She grew tired some time ago of this introduction of philosophy into her classroom. However, certain of the students murmur. The question has introduced doubts which they're uncertain how to resolve.
This particular free market valuation is bad for the environment, bad for the owner. It's not efficiency. It's pure waste.