The double thank-you of capitalism

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In a free market transaction, both buyer and seller think they have become wealthier than before.

The double thank-you of capitalism is noticing that, when a seller and a customer give money to one another for goods, each thanks the other, showing that the transaction is not only optional, but good for everyone who was involved.[1][2] This can be shown as different to the thought of a "fixed slice pie" that takes place in many other situations, with one side taking and the other giving, a thank-you would only pass only one way. The double thank-you is used in economic discussions to show an example of the first benefit of a free market, that where all actions are optional, any transactions must benefit both sides, and this helps everyone in the general community.[3][4]

References[change | change source]

  1. "Milton and Rose Friedman on Adam Smith's Key Insight". Our Dinner Table. 29 September 2009. Retrieved 23 April 2019. One set of ideas was embodied in The Wealth of Nations, the masterpiece that established the Scotsman Adam Smith as the father of modern economics. It analyzed the way in which a market system could combine the freedom of individuals to pursue their own objectives with the extensive cooperation and collaboration needed in the economic field to produce our food, our clothing, our housing. Adam Smith’s key insight was that both parties to an exchange can benefit and that, so long as cooperation is strictly voluntary, no exchange will take place unless both parties do benefit. No external force, no coercion, no violation of freedom is necessary to produce cooperation among individuals all of whom can benefit.
  2. Stossel, John (May 31, 2007). "The Double 'Thank You' Moment". ABC News. Archived from the original on November 4, 2018. Retrieved 23 April 2019.
  3. Nordlinger, Jay (1 May 2017). "Our 'Thank you,' 'Thank you' society, &c". National Review. Retrieved 23 April 2019. Trade deals ought to work out for everybody — ought to be in all parties’ interests. You don’t have to come “first.” You have to get something out of it. Not to be too kumbaya, but everybody is “first.”
  4. Horwitz, Steven (10 November 2016). "The Double Thank You of the Market | Steven Horwitz". fee.org. Retrieved 23 April 2019.