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<p>[QUOTE=&quot;Cloudsweeper99, post: 1390477, member: 3011&quot;]What you refer to as &quot;over production capacity&quot; cannot exist in a free market, which is why you don&#039;t see it mentioned often.&nbsp; </p><p><br /></p><p>Raising wages in the third world is the wrong goal.&nbsp; The goal should be to find a way to achieve the widespread ownership of private property and the legal means to protect it.&nbsp; Once that is accomplished, wages will take care of themselves.&nbsp; It&#039;s a legal problem and not necessarily a greed problem [although greed might be a motivating factor in limiting the ownership of private property].</p><p><br /></p><p>Competition for limited resources doesn&#039;t lower the standard of living.&nbsp; It generally leads to an increase in the supply of the resource.&nbsp; What is generally misunderstood is the nature and purpose of the price mechanism.&nbsp; Higher prices are a signal to the economy that additional capital is required in that sector.&nbsp; Take oil as an example. Higher oil prices and the resultant higher profits will [unless prevented by law or regulation] attract additional capital to the industry and lead to greater supply.&nbsp; Limit the price or limit the profit [as is popular in some dark age circles of thought] and all you will achieve is a shortage that will actually lower the standard of living.[/QUOTE]</p><p><br /></p>

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