Kurt Emans: The Magic of Market Economy

Market production is what happens when two parties, one of which may be Kurt Emans, agree to conduct a transaction in which a product or a service is exchanged for money. Markets are very efficient when it comes to the production of things that people want to buy.

Kurt Emans: The Magic of Market Economy

A competitive market is a market where many sellers compete with each other trying to get business from customers. In a scenario like this, every seller is motivated to sell at the lowest possible price. This drives prices so low that sellers can barely make a profit. Competition in the markets leads to efficiency because sellers are motivated to find the most effective ways of production and to minimize waste. Since competition in the markets is permanent, the need to become and stay efficient is also constant. Improving efficiency allows sellers to lower their prices and undercut competition, which leads to getting more customers and making more money.

Kurt Emans: The Magic of Market Economy

Markets also are capable of figuring out what people want. They then provide the products and services that satisfy people’s needs. All of this happens without any centralization. It is absolutely amazing because there are over seven billion people living on our planet. It would be absolutely impossible for someone to survey all seven billion people to establish what the majority wants.

Kurt Emans: The Magic of Market Economy

However, because of the properties of free markets, there is no need for the big picture. For example, the person that sells you a computer at a local store probably has no idea how many computers sold worldwide in the last year. All he or she knows is that you want a computer and they will make a profit by selling you one. When they do, they will order more computers from the factory hoping to sell them to more people, maybe even to Kurt Emans. The factory will then increase output to produce more computers.


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