Wealth corresponds to the satisfaction of people's needs, while trading is to improve the satisfaction of people's needs under the condition that the total amount of goods remains unchanged. In this way, transactions have increased social wealth. Another example: you have a hundred apples and I have a hundred bananas. I give you a banana and you give me an apple. Although the social total is still 100 apples and 100 bananas. But our wealth has increased. So the more transactions, the faster the wealth increases. This is why social wealth has increased rapidly since China allowed private enterprises. Therefore, to develop the economy and increase wealth, we should encourage transactions, not restrict them. Restricting the trading of scarce commodities will lead to a further shortage of scarce commodities. This is the impact of the transaction on demand.
Another function of trading is to promote the division of labor and improve the productivity of goods. For example, I am good at making clothes, but I am not good at making buns. The owner of the steamed stuffed bun shop is good at making steamed buns, but not at making clothes. I specialize in making clothes and he specializes in making steamed bread. Through the transaction, I can eat steamed buns, and he has clothes. This is the impact of the transaction on supply.
People's needs are always changing. Maybe one minute you are hungry, and the next minute you can't eat. It is very difficult to plan and arrange production through the central system. But if the choice is decentralized, let everyone trade for themselves. Everyone will trade only if they meet their own needs. This kind of transaction combines the needs of society with the production of goods to form a large system. Similar to a distributed system in a computer, it consists of multiple computers, which solve complex problems in pieces and finally summarize them in a unified way. For example, I am good at raising pigs and growing corn. But I don't know whether to raise pigs or grow corn now, which can increase social wealth more. If pigs and corn are harvested in six months. At this time, I observed the futures market, and the corn futures contract went up six months later. So I planted corn and sold futures contracts six months later to lock in profits. The other person is a feed producer. After signing the contract, he needs to buy corn six months later. So he bought a corn contract in the futures market six months later. Through the transaction, the production and demand of society reach a balance. This is the impact of the transaction on the system.