Market Power

Musings by an academic economist on the power of markets and the power over markets.

Friday, March 25, 2005

Ain't Trade Great

I briefly blogged about this really cool slot-car racing set. What got me thinking about slot-car racing tracks was this entry that I posted several weeks ago about how these toys drive cats nuts. Well, I have a cat. I also have two small durables. I am also a big kid at heart. So I decided I had to have one.

I ordered it from Amazon.com and have been tracking its progress to my house. I should be receiving it via Fed Ex later today. Here's what has gone on with it so far:

Date Time Location Service Area Checkpoint Details

Mar 25, 2005 08:26:00 AM NORTH MANKATO MN US ON FEDEX VEHICLE FOR DELIVERY
Mar 25, 2005 08:23:00 AM NORTH MANKATO MN US ARRIVED AT FEDEX DESTINATION LOCATION
Mar 25, 2005 06:52:00 AM MINNEAPOLIS MN US LEFT FEDEX RAMP
Mar 25, 2005 06:01:00 AM MINNEAPOLIS MN US ARRIVED AT FEDEX RAMP
Mar 25, 2005 04:14:00 AM MEMPHIS TN US LEFT FEDEX SORT FACILITY
Mar 25, 2005 12:22:00 AM MEMPHIS TN US ARRIVED AT SORT FACILITY
Mar 24, 2005 09:44:25 PM Fernley NV USA SHIPPED
Mar 24, 2005 09:08:00 PM RENO NV US LEFT FEDEX RAMP
Mar 24, 2005 05:48:00 PM RENO NV US ARRIVED AT FEDEX RAMP
Mar 24, 2005 05:34:00 PM RENO NV US LEFT FEDEX ORIGIN LOCATION
Mar 24, 2005 04:01:00 PM RENO NV US PICKED UP BY FEDEX

A long time ago, somebody somewhere realized that people might find slot car racing tracks to be a real cool toy, so they developed them. Over time, the products improved. Now, somewhere in this world, some company produced the set that is now en route to my house. Somebody in Reno Nevada, a person whom I will never know, got this package ready for me. Somebody else in Reno picked up the package and started it on its journey to my house. Since then, it has traveled to Tennessee, to Minneapolis, and it is now somewhere in North Mankato, Mn. All the while, people along the way, people doing their jobs, have made sure that this toy was being put on the right plane, being moved to the right shipping area, etc. And by the end of the day, my kids and I will be having fun with a new toy, my cat will be going nuts, and my wife will be getting the rolling pin out.

This is such a mundane transaction. Man wants toy. Man buys toy. Man plays with toy. These are such mundane transactions that we don't even think about all the activities that occurred to make the transaction take place. But these sorts of "mundane" transactions are what drive market economies, and they are the reason why market-based economies work so well in providing what people want. It's too bad that the "invisible hand" is invisible, because I'd like to shake it right now.

Ain't voluntary trade great?

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