this post was submitted on 01 Oct 2023
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[–] eestileib@sh.itjust.works 38 points 1 year ago (2 children)

Tell me more about how capitalists efficiently allocate resources.

[–] realharo@lemm.ee 40 points 1 year ago* (last edited 1 year ago) (1 children)

This may actually be one of those things where it turns out to be worth it (for them anyway), if they can get some major technological advancements out of it.

There are so many other things in the world that are way more wasteful and way more pointless.

[–] Pipoca@lemmy.world 2 points 1 year ago

Allocative efficiency in economics just means that you can't make someone better off without making someone else worse off.

An efficient allocation isn't necessarily equitable.

And the first welfare theorem of economics only claims that the market will produce an allocatively efficient result if its complete, in perfect competition, and everyone has complete information. Which has the obvious problems of those preconditions not matching reality.