Convergence : A phenomenon where a specific value or level moves toward a certain standard . A bubble occurs when a community’s value rises excessively due to overestimation , while an undervalued state is the opposite. Both eventually settle at a balanced value recognized by the community , called convergence. Bubbles and undervaluation represent states at any given time. If a seller sets a product at an excessively high price, it won’t sell indefinitely, and the seller will eventually lower the price. Market prices tend to converge. There isn’t a single correct market value, but converged values exist, and this phenomenon gives the market its meaning and existence. There’s no need to be arrogant when doing well, as your high wages will eventually align with the market price. - Joseph’s “just my thoughts”
Let’s say I’m a potato farmer. Assuming that I can survive by eating only potatoes, I become wealthy when I work hard to increase potato production. However, to survive, we also need shelter and clothing. No matter how much money we have, we cannot eat the money itself as food. In other words, exchange is vital for survival. This means that if we have to rely on one job, we can only survive by trading needs, apart from potatoes, with other producers, using the output we gain from that job. In an agricultural society, production determined wealth, but in a modern society where industrial products have taken the place of other needs, the greater the potential for exchange between ourselves and others, the more advantageous it is for survival and the greater the potential for wealth. This is known as the power of distribution. The more sales channels you have, the stronger your business competitiveness and market influence. The ability to sell a lot is paramount. - Joseph’s “just my thoug...