[ihm]

It’s not remotely true that prices are capable of transmitting all the information required to reproduce society.

This is for the simple reason that prices more or less only communicate information about the amount of labor required to produce a thing[0].

Therefore prices on their own are, for example, incapable of transmitting information about what action needs to be taken to correct the relationship to the biosphere. Information about the state of the biosphere will only enter into prices to the extent that things start taking more labor to produce. But there’s no market mechanism that would then cause that to direct action towards stabilizing the climate.

[0]: This is because cost resolves into business owner’s cut + labor cost + cost of inputs, and the inputs can recursively be split into the same until you’re left with the amount owners take, the amount paid to workers, and the amount paid to owners of natural resources.

The business owner’s cut and the amount paid to owners of natural resources are socially determined and bear almost no relationship to the physical world or reproduction of society.

[svnt]

Is this an intuitive conclusion you’ve arrived at or do you have a source for it? It seems it can trivially be shown to be false under a number of circumstances: supply and demand, secondary markets, etc.

[kelseyfrog]

It's a bit strange you didn't mention externalities in your list. How are they factored into price?