Failure?The Free Market has NOT failed.
Producers and service providers are The Free Market. These entrepreneurs conduct voluntary exchanges that enrich each party – open and fair contracts.
The polar-opposite of The Free Market is Socialism.
Socialism? NOIn contrast, gov’t extorts taxes from these wealth creators… a parasite eating at the expense of its host. Shortsighted social engineering is attempted via legislation. Once opened, the theft continues – continual legislative tweaks and tax increases. Each ill-fated “law” calls for more BIG gov’t. Centrally-planned society, via gov’t … is Socialism.
The United States is a mixed economy – part Free Market and part gov’t-created Socialism.
I advocate a purposeful move towards free markets and an abandonment of Socialism.
At the most basic level, personal choice is maximized by the Free Market. Socialism takes away personal decisions and choice.
“Let” the Free Market work. It is the most effective and efficient method to distribute goods and services within a society.
What a yugely, horrible idea!!
Most everybody loses in a trade war. [April 2018] |
With sanctions and boycotts, products made more efficiently (for lower cost) are NO longer available. First, there is a smaller supply that raises prices. And, existing higher-cost producers have less pressure to keep cost “low”… higher prices (again). The consumer loses on two fronts.
Also see Tariffs discussion below.
So, who “gains”?
Only the protected industry/company gains. While it may NOT create a monopoly, it is movement in that direction. Then, if other competitors are eliminated, a gov’t-created monopoly emerges. At this point, everybody loses – less choices and higher prices.
The outcome is in effect, a subsidy for an industry/company. The gov’t unwittingly picking winners and losers AND then forcing the bill upon taxpayers. I’m tired of paying for govt’s mistakes!
It is NOT about the (fiat) money. It is about what is received in exchange; what a consumer gains.
We have a trade deficit because we DO NOT make anything anymore. We don’t make anything because our labor is cost prohibitive. We are NOT completive with other nations’ workforces.
”If Socialists understood economics, they wouldn’t be Socialists.”
- Friedrich A. Hayek, 1974 Nobel Memorial Prize in Economic Sciences
Please consider a primer on economics, like Henry Hazlitt’s Economics in One Lesson.
"Let" the market work. See if bump stocks, AR 15s, and rifle sales to 18 to 20 year olds continue [March 2018]. Do The People want these commodities?
Also, "let" or encourage gun control advocates to make public appeals and/or picket sellers and traders. This, as our laws stipulate, must be peaceful exchanges of ideas - Free Speech working in tandem with the Free Market.
My prediction: sellers and traders will NOT restrict the products they exchange. There will be pickets. However, in time, there will be less pickets because they will NOT change anybody's mind. There will be a few minor scuffles - both sides moderately losing their cool.
Whoever escalates (breaks the peace) loses the public debate.
Gov't - ineffective and woefully inefficient
The "Affordable" Care Act (ACA)ACA is a huge gov't intrusion/usurpation of the economy. It will fail because of several factors, chiefly pre-existing conditions.
ACA should be repealed and NOT replaced. It is an incremental move towards Socialism - central, gov't control.
Ill-conceived gov’t interventions create devastating, unintended consequences. The Smoot-Hawley Tariff (1929) preceded the Great Depression. Many economists insist that this tariff was a direct cause of that massive financial collapse.
Tariffs on steel and aluminum [March 2018] will have large-scale unintended consequences. First, they will limit the amount of steel/aluminum available – lower supply = higher prices. There will be inflation, even with domestic manufactures rejoining the market; they are higher-cost producers with start-up costs. Second, every product that uses steel (and aluminum) will have increased costs of manufacturing… customers will pay more for these products.
There are too few “winners” with tariffs. Most lose.
Earlier ideas about tariffs “on Mexico” and “on China”? Again, the importers will increase prices to offset the ill-advised and ineffective tariff. This additional cost will be passed on to US consumers. Neither Mexico, nor China pay for these tariffs … or the wall… With tariffs we will pay for the wall via higher prices.
Any disciplined economist would predict that easy credit, in mass volume, would come home to roost. This naďve, shortsighted engineering was doomed to fail (and fail impressively). Could magnanimousness BIG gov’t simply will that some could afford housing? The answer was a resounding NO. And, continued gov’t interference has caused the recovery to take almost a decade.
Gov’t “action” is much like a Rube Goldberg machine (above left). It is ineffective and woefully inefficient. Each addition/complexity is a new point of failure.
Economic forces are far stronger and deeper-rooted than political expediency.