Above all else, humanity is at a point where we totally COULD feed and clothe and educate and shelter and provide health care for every last person on earth
I agree with this absolutely. We
could do that.
I don't really see why we shouldn't... and when you look at the distribution of wealth all across the world, it's not like anybody on this forum would actually have to give up anything to get humanity to that point. We would all reap the benefits, however. It's total narcissism that prevents this from happening.
This is the part I disagree with. The reason is ECON 101, Chapter 1, Page 1:
Scarcity: The lack of enough resources to satisfy all desired uses of those resources. All of those "handy dandy laws of supply and demand" are not so simple when you pit implicit costs vs. explicit costs. Implicit costs include all of the things you forgo in order to use an asset. Explicit costs are just monetary outlay.
There is also a thing called the "Law of diminishing return" and it is not as 'simple' as S&D, (and S&D is not simple. If you think it is, then you don't really "get all of that free market stuff"). It says that the marginal physical
product of a variable input (not fixed) declines as more of it is employed within a given quantity of fixed inputs.
For example, if I run a hot dog cart by myself on day one and I pay myself $10, I sell 50 hot dogs in a day. I then hire a second person on day two and pay him $10 to run the register, I sell 200 hot dogs because we specialized our service to the hot dog stand. On day three I hire a third person, pay him $10, and we only sell 250 dogs because we are running into each other. Selling each dog for 2 bucks a piece, my business makes $90 the first day, $380 the second, and $470 the third. My per unit cost however, goes from $1.80 on day one to $1.90 on day two, to $1.88 on day three. My business is becoming effected by the law of diminishing return on day 3. If I add one more person, pay them $10 and we sell 255 dogs, my business makes $470 on its 4th day for a per unit cost of $1.84. On day 4, we are still selling more hot dogs than on day 3, but the business didn't take in any more, and the per unit cost actually went down. Our hot dog stand is now seeing a diminishing return at the same profit.
The thing is, it doesn't matter if it is hot dogs or health insurance, it works out the same regardless of product sold. We may have the resources to DO it in
theory, but when it comes down to actually DOING it, it cannot be done. It's the
law. Any attempt to try would incur an opportunity cost, an
implicit cost that would create an even bigger disaster than we tried to fix in the first place.