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Author Topic: The unbridled faith in free market  (Read 914 times)

Offline godzilliac

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The unbridled faith in free market
« on: March 10, 2013, 02:40:55 PM »
Throughout history of mankind there has always been some kind of government, be it a democracy, dictatorship or oligarchy. Naturally this offers a plethora of examples where government intervention has proven to be detrimental, overbearing or simply incompetent. Government bashers will gladly point out these shortcoming and further make the case for either a total abolition of government or at least a very minimal skeleton government.

Their ideal is that of free entrepreneurship under the firm belief that the free market will always be able to regulate itself and harbors no excesses or perversions. As skeptical and even suspicious the attitude towards government, the more willing and forgiving such believers are towards free markets and corporations. Aside from musings from certain philosophers, such an ideal, unrestrained market never really occurred in it's pure form so we really have no reference if this concept would actually work. As a matter of fact, the closest example I can think of is that of the medieval feudal society in which central authority was at it's weakest and local lords and aristocracy were almost completely unchecked. Landownership came with a great deal of privileges and almost absolute power.

An unrestrained free market will inevitably create it's winners and losers. This will always be the case and we carry a responsibility towards our own well being. But the question is how sharp this contrast will be and what chances you'll have to climb out of your misfortune. It is a given that we are not born with equal opportunities, despite the mantra of the American Dream. Which will leave us with the ultimate question as to which system will offer you the best conditions to improve yourself.

Offline the GUN runnerr

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Re: The unbridled faith in free market
« Reply #1 on: March 10, 2013, 04:11:35 PM »
free?  Copyrights cost money.  copyright infrindgments take money.  do you have any idea how many different liscenses some small businesses have to carry or how many different insurances are mandated.  of coarse alllll of the different taxes, say, a farmer shells out. all of these things cut your working capital down making the risk of profit very slim. 

i would suggets a market sort of like the medieval one you alluded to but the mob fucked that up.  the beauty of corruption and extortion was that the powers that be would provide " protection".   thats the same principle as paying your taxes and all that shit i talked about in the begining.  oh you dont think the king didnt have his hand in every town taverns cash register?!

just the obvious tip of the iceberg about the enterprise market being free.  i tried to cover both meainings of the word free btw

 


Offline Valjean

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Re: The unbridled faith in free market
« Reply #2 on: March 10, 2013, 04:17:29 PM »
Aside from musings from certain philosophers, such an ideal, unrestrained market never really occurred in it's pure form so we really have no reference if this concept would actually work. As a matter of fact, the closest example I can think of is that of the medieval feudal society in which central authority was at it's weakest and local lords and aristocracy were almost completely unchecked. Landownership came with a great deal of privileges and almost absolute power.


Except for a few government interventions like railroad grants America had a unrestrained, unregulated free market until about World War 1.  This is also the period in which the American economy grew the most and the condition of the average man improved more than any other place or time in the history of the world.

The begs the question for what reason would one not have unbridled faith in the free market?  The 2 biggest market collapses we've seen: the great depression & the last 5 years were both caused by government intervention in the free market.  Were it not for the actions of the federal reserve in the early 1930s there never would have been a Great Depression; there would have been a minor downturn.  Likewise were it not for Alan Greenspan's easy money policy under Clinton, coupled with Clinton forcing - through regulation - changes in mortgage underwriting criteria we never would have had the current economic downturn.  Which is ironic because Clinton is still out there giving speeches blaming George Bush when he was himself almost completely soley responsible for the long downturn in the economy.

When left alone the free market does wonderful things.  When the free market is messed with by government intervention you get bad, unintended outcomes.... which politicians who caused these bad outcomes (and certainly are not going to take responsibility) then turn around and blame "the market".

Offline booshthelurker

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Re: The unbridled faith in free market
« Reply #3 on: March 10, 2013, 04:43:05 PM »
lol Religion is a funny thing.

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Offline travilanche

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Re: The unbridled faith in free market
« Reply #4 on: March 24, 2013, 04:27:49 AM »
I think free market is good to an extent.  But when it's completely unchecked, and there are no minimum wage laws (just for example) the free market can take advantage of labor in any way they want, and pay coal miners 5 dollars an hour, which is unacceptable. 
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Offline Valjean

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Re: The unbridled faith in free market
« Reply #5 on: March 24, 2013, 03:54:59 PM »
I think free market is good to an extent.  But when it's completely unchecked, and there are no minimum wage laws (just for example) the free market can take advantage of labor in any way they want, and pay coal miners 5 dollars an hour, which is unacceptable. 

I think its impossible for the free market to take advantage of labor (or anything else for that matter).  Just for the simple fact that no transaction takes place under capitalism unless both parties benefit.  No one is going to go work in, say a coal mine for $5, if they have a better alternative. 

I'll give you an example, this cnn article below, deals with in-home nursing care.  It was one of a few areas exempted from the original minimum wage law by racist Southern Democrats to keep the wage law from applying to black farm workers & house servants in the south.  So to this day it is not subject to the minimum wage law, but the prevailing wage in this field is $9.70/hr because at a lower price employers are unable to find people willing to do the work.

http://money.cnn.com/2013/03/11/news/economy/fastest-growing-job/index.html?hpt=hp_t2