What is the position of systemaccounting on pricing?


There is such a price that can be set in the pursuit of adding value (profit) that denies its payor, and therefore the economy, the opportunity to maximize value. In other words, there is a price that causes its payor to spend so much time paying that their ability to discover how to be paid for something else (opportunity) is removed.

Property rights must be protected. The right to set a price, or individually choose how much work others must perform in exchange to obtain private property must be equally protected—this is where socialism fails. The natural limit, however, is drawn at the point where individually maximizing value prohibits the economy from reaching its own value-maximizing point—this is where poorly practiced capitalism fails.

Like a well-balanced system of organs, individuals must avoid becoming an obstacle to, or limit the ability of another to add as much value as possible. An economy cannot reach its value-maximizing point when its individual participants may only see their own, or are unwilling to acknowledge the one belonging to the economy (greed). 

To eliminate this blindness, whether innocent or willful, participants in an economy must have equal access to the same information. That information which must remain the same is the mathematical truth of what is physically occurring in an economy, at any time.

Was this helpful?