Originally Posted by PQleyR
I don't believe in any economic system based on the creation and enforcement of artificial scarcity (e.g. diamonds, oil etc). Prohibiting the free sharing of music on the internet is the same thing. Once recorded music was imprisoned on physical media and the finite supply of that media, controlled by a handful of influential people, was what created the demand. Maintaining that scarcity is holding back the natural progress brought about by new technology, and it's equivalent in my mind to subsidizing the steam engine industry when demand started to tail off. It's backward-looking and serves the interests of a minority of people at the expense of the majority, and that is unjust and simply wrong.
Please explain how an artificial scarcity of diamonds and oil has been created. AFAIK there is a finite amount of both of these things in the earth's crust.
Putting music (or movies or written stories) on physical media does not create demand. It controls supply - as long as you have enforceable copyright laws - but it does not create demand. Demand is people wanting stuff, which is a different concept entirely. And even if supply of David Byrne CD's is limited to say 20 copies of the CD, there are a range of substitutes available, ranging from other artists' CD's to home made music to non-music leisure activities.
The free market system works for most goods and services because if somebody can produce something cheaper than their competitors they will take business from their competitors. It's not perfect, but it's less imperfect than anything else that's been tried.