Yeah, i guess that's difficult for me. seeing as how i already asked whether it was the regulated banks or the completely unregulated hedge funds that went broke and needed a bailout.
Maybe you could answer. Which industry needed a bailout?
When All Else Fails Blame "Free Markets"
- Thread starter Tsing Tao
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Yeah, i guess that's difficult for me. seeing as how i already asked whether it was the regulated banks or the completely unregulated hedge funds that went broke and needed a bailout.
Maybe you could answer. Which industry needed a bailout?
I couldn't agree more. What we have is more of a corporate free for all than free markets, and the necessary evil of government regulation has become an evil government. Put them both together and who gets hosed? You and me.
But let's not lose our perspective. Looking at history, even looking around the world today, we see a lot of examples of truly evil governments, where people suffered hideously day in and day out. We're carrying a comparatively light load, "sounds like a first world problem" (as the young folks like to say). Though, interestingly, those people of far off times often seemed to have better humor.
There is a dichotomy of meaning associated with the phrase "free markets". To most individuals the phrase means freedom to enter and compete in a fair market with little or no government interference. To the capitalist, however, the phrase "free markets" is synonymous with the phrase laissez faire . It means, to them, freedom to operate within a market however they wish. Competition is not welcome, and skilful capitalists will do what they are allowed to do to eliminate competition. They are not necessarily opposed to regulation of their respective industries, however, because they strongly support and even propose regulation that benefits them.
Here are a few of the endless examples of the skilful "free market" capitalists working their magic through regulation: (Many successful regulation initiatives begin with claims of improved safety. ) The wire manufacturers strongly support building codes that require more wire rather than less. The medical profession strongly supports laws controlling access to drugs. The concrete and asphalt industries strongly supports regulations requiring the paving of parking lots. The insurance industry strongly supports mandatory liability insurance for drivers. The prison industry favors mandatory sentencing. Etc.
So which kind of "free market" do you advocate? Obviously, as an individual, it would be the first kind, the kind where there is a minimum of regulation and all regulation is good regulation that protects free markets from the ravishes of capitalism, and, while taking safety into consideration, leaves room for a reasonable level of choice and risk to be assumed by the individual.
I submit to you that the ideal kind of "free market", from the viewpoint of an individual, is impossible, because considerable government regulation is required to prevent its destruction by the incursion of laissez faire capitalism. The "ideal free market" is unobtainable. But we can come much closer to it than we have through good, well-thought-out regulation, and by eliminating much bad regulation whose main effect is to restrict competition and choice, or results in an excessive compliance burden, without a commensurate gain in safety.
This is a very insightful post, Piezoe. Frankly, I am rather somewhat surprised. Maybe there is some hope for you yet.
If the question wasn't actually rhetorical, then allow me to say I support the first kind - the one that focuses on the individual's rights.
As to the second kind, if you remove lobbying totally, you cut out a great chunk of that interference that causes government to regulate based on corporate interest. Lobbying is not part of a free market (or should not be).
Condescending.
Good post, piezoe. Have you read the recent article, "the free market is an impossible utopia"?
Wrong.
Laissez faire capitalism is the kind John D Rockefeller used to destroy competition by undercutting them on prices and forcing them out of business unless they sold out to him.
Getting the gov't to regulate your competition out of business in not laissez faire capitalism. Are you kidding me?
You didn't take it as a compliment??