Even people not party to my attempt to get the best

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Even people not party to my attempt to get the best apples for the lowest price, and the attempt of theapple sellers to make the largest profit benefit from our competition. In this way, economic competitionand growth benefit the whole of society.
Slide 4: A Nursing Shortage in OntarioLet's take another example of how the invisible hand solves a difficult social problem. When I was anundergraduate at the University of Toronto in the early 1980s, there was a shortage of nurses in Ontarioand much of the United States as well. Now, if you were the Prime Minister of Canada, how would yourespond to this crisis? Well, if you were guided by Soviet communism, the answer would be easy. TheSoviet system is what economists call a "command economy". The leadership can command people toenter nursing schools and become nurses. It can then assign them jobs in parts of the country where theshortage is the most acute. It can set wages and the conditions of work. However, a liberal societyrejects such coercion. What would your government do? One that is guided by the classical economicliberalism of Adam Smith?Slide 5: What Would You Do?
an economic liberal of the classical school, you would reject them all. You would do nothing. You wouldtrust the invisible hand of the market to fill the empty spots and solve the nursing shortage.Slide 6: The Invisible Hand Solves the Nursing Shortage/SurplusHere's how it works. If there's a high demand, but low supply of nurses, hospitals will have to raise thesalaries of nurses to attract the best and the brightest, or any nurses at all, in fact. Students who are allself-interested utility maximizers will be attracted to the nursing profession simply out of greed. Theymay, in fact, prefer to study something else, like philosophy, but they will realize that becoming aphilosopher won't pay the rent. Now, I want to say here that I respect the academic discipline ofphilosophy and philosophers greatly. I mean, philosophers ask all of the world's important questions:why is there something instead of nothing? What is the meaning of life? Would you like fries with that?It's true. Some philosopher can earn as much as poets. Okay, did I say I like philosophers or respectthem? I was only kidding. You know, these people have had three thousand years, and really, they stillcan't prove that the world is real. Isn't it about time they went out and got real jobs? Okay, now where

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Term
Winter
Professor
MarybethWhite
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