Bad economic policy ET

V

Voodoo-king

Free trade is beneficial for all who participate. Norway can sell China oil, China can sell the US consumer goods, the US can sell Norway Hollywood movies. Economic growth is maximized if trade is not regulated.

This is just an example, it makes sense for a country to maximize its comparative advantage. The US protects property rights better than most, it makes sense to invest in the US. Liquid markets are also a plus.

In reality the patterns of trade gets very complex and nobody can see a fraction of what is going on. Free trade creates the most wealth possible.

When I post a post on ET I post because I know it benefit some readers, ET as a whole (myself included) in a way that is not obvious to most.

Banning those who provide entertainment is not a good idea.

I might supply posts that have a serious tone, but reading serious posts is mostly not what I come to ET to read.

Many of the threads I enjoyed reading have now been deleted.

To give in to those who cry for more government is to give in to those who can’t stand seeing others being enriched. These people do not know what is best for themselves or ET as a whole. This place will dry up if trade is regulated. Wealth that could have been created will not be created.

This is not just my opinion and I don’t think I have more to add on this subject.

Laissez-faire.
 
The site becomes unreadable and not worth the time it takes to get past all the "FU" posts if you don't generously and frequently apply the ignore button, pretty much like a libertarian homeland security in your allegory, sort of like "see an illegal/terrorist =shoot the f%%er... ". A more sophisticated homeland security policy has been proposed in the manner of charging a buck for lifetime membership thus tying the perps to an address and real id as well as charging a buck which alone, might keep out 90% of the trash. That is similar to having a port authority check for explosives and spreading the cost over the entire population.. Now I wish ET could just print money like the Fed for us all and complete the picture....
 
Quote from Voodoo-king:

Free trade is beneficial for all who participate. Norway can sell China oil, China can sell the US consumer goods, the US can sell Norway Hollywood movies. Economic growth is maximized if trade is not regulated.

Laissez-faire.
More...

I agree on free speech, but I don't agree on economics :-)

Economic history has shown, rather resoundingly in my view, that a mixed socialist-capitalist economy performs best. Prior to 1930, when the U.S. transitioned from free market to a mixed socialist-capitalist economy, depressions and deep recessions were common in the U.S. Since the 1930's there have no depressions. This is due to government spending, which provides a "floor" of economic demand during recessions and keeps money and jobs going.

The only argument is over how much socialism and regulation is the right amount. The U.S. seems to be close to the right mix.

We've tried laissez faire before -- it's like a manic depressive or a bipolar patient -- wild booms of prosperity followed by deep glooms of depression. No thanks.
 
Never negotiate with terrorists.

A country might have a ruthless ruler, or a government that does not respect human rights at all. Should trading with such a country be regulated or banned by the government?

Economic isolation might make matter worse, the dictator might build a bomb and starve its population. Having two governments arguing about who is responsible for the starvation is not helpful at all when they are in fact both responsible.

Every investor, consumer and business leader have a choice about where they trade or buy stuff from. Not supporting countries that have a government that is violating human rights is a possibility they have.

If a poster really hates another poster ignoring those who don’t ignore the poster that is causing the problems for him is a thing he can do. Telling others about this strategy would make this strategy even more effective.

Of course it would be profitable for an investor to invest where others don’t want to invest because they have moral, but if enough people have moral two things could happen.

The ruthless ruler or government has economic incentives to change its policy cause it would reduce the cost of attracting capital, and to do business with foreign countries.

The population could discover prosperity is more plentiful elsewhere and fight for a change.

If investors, consumers and business leaders acted responsible the good countries with good governments would prosper while those with bad governments would not because cost of doing business would be higher. The better the government the lower the cost.

Governments can also do this job by regulating trade and often do but this tends to create trade wars.

Another point worth considering. If trade is restricted on a governmental level its difficult to empower those within a country with bad government that wants a change by doing business with them.

People should apply to their own moral. Governmental regulations are not the solution.

Even though I believe taxation by force is simply wrong I can accept a small government that is financed by forced taxation. So I do not think its wrong to negotiates with terrorists.

Wild booms of prosperity followed by deep glooms of depression is not such a bad thing, its beneficial for growth. The depression brings out the fighting spirit, the wild booms spawns many big ideas, some that actually works.

Bringing out the fighting spirit might be dangerous also, the road to fascism is short if the depression is gloomy enough.

The fed might have a role in avoiding a depression but it could also be what cased the boom that came before the bust and therefore caused the depression, so im going in circles, if booms and busts are a good thing it might be better with even bigger booms and busts caused by the fed.

Laissez fair is the middle ground and I can’t believe why traders don’t support it. Inflation targeting is the next best solution.
 
You must log in or register to reply here.
Back
Top