4 Myths About Free Markets—and Their Demise

Economics

The author of this article obviously has never studied economics.

Ivan Ho of CA @ Aug 15, 2009 13:18:22 PM

We have no Capitalism anymore in USA - it's So Monopolism now

During past 10-15 years of "global economic" reform and "free trade" our Feds and financial clans have been successfully working on conversion of our system into monopolistic body with socialistic engine. They wanted to give birth to an ugly mutant and they did it. I call the new system Mastrubism, or you give it your name. It's partly socialism due to high spending on people at the bottom and free huge money for selected by government leading giants/companies in their industries. This reminds me Soviet Union/USSR a lot. We used to have full government control of all industries starting with manufacturing, then distribution to warehouses and ending with large government controlled chains of small and large stores/retailers. That basically what's going on now slowly but surely here in USA. Government taking over large giants by borrowing them fresh printed money which costs government almost nothing. This is hidden type of step-by-step privatization of these formerly privately own chains. This is why government was demolishing our normal capitalistic economy starting from 1970 by almost uncontrolled import of import cars and other products and making local manufacturers go out of business. It started with manufacturers, then professionals such as programmers and engineers in 2000 and up. Then the most deadly hit was introducing and empowering by credits and patronage "small business killer chains" like Walmart, Kmart, HomeDepot, Lowe's, Staples, Target, BestBuy, Sears, Marshals, Liquidator, Ikea, etc. They all say to us "Save More, Live Better" or "More Saving, More Doing". Oh yes! However what they not telling us, that we eventually will close most of our small businesses operated by us, our family members, friends, neighbors, etc. Who will benefit from buying from these stores? Mostly people in need who are on government assistance, people with stable jobs with stable companies, government employees, and similar individuals. If you have more money then you can spend per month you will survive without going to this kind of large stores which are basically working for government now. The goal here is to socialize the retail industry by slowly and surely killing small independent retailers with "price beating"/ "wholesale to public" concepts and tools. Who is wining here? Nobody, but government and its direct investors/clans. What it does to our Capitalism and USA market? It kills it. The first rule of Capitalism is to protect small businesses and local manufacturers from monopolists in their industries. There are has to be no blood sucking giants, if we want to preserve healthy capitalism and its creative spirit. Government was created to protect small businesses from giant monopolies and uncontrolled imports. It failed to do so and sold its soul to clans. Every smart and talented small business owner knows that it's impossible to fight a wholesale to public giant, and most of businesses give up to fight or just not being given new births anymore

AC of NY @ Jul 19, 2009 04:50:24 AM

Free Markets

I guess Rick would rather go down the road Communist USSR and China did for decades? What a success those government controlled markets were back then? Yep, they were so properous that the people living in Russia enjoyed the wealthiest life styles in the world! Gee Rick how would you like not being able to afford a car or a decent house? Would you give what you have now for that life syle?

Don Rossmeisl of CO @ Jun 26, 2009 21:56:27 PM

Free?

This Nation prided itself on Free, (it is, you are free to destroy your economy any way you can. Take what you have done to the Auto industry). The choices were yours Free to do and buy what you wanted (right) Then look at what you have done. The Japan economy is still in tact ,other than no sales for its products in the USA. The China Economy is in tact other than its sales to the USA Korea is in Good shape other than sales to the USA . Europe is another Thing, it is OK other than its investments in the USA. Think about it The USA has been Free to destroy itself and suck the rest of the Global Economy with it. The Auto industry was the building of America and your free to do what you did ,Think if each car from Japan had a riseing sun flag on it the country would resemble Pearl Harbor on that day of infomy. Korean Cars would also bring it home to those that fought there, China too God has given you Free to do what you will. The auto industry will come back in America but not by those thinkers that have sold this country Freely

Plano of FL @ May 28, 2009 10:49:38 AM

Mort, you gotta read the article before responding...

Rick is saying what you're saying, that "free" is not free. You gotta read the article first, buddy.

Ben of PA @ May 03, 2009 13:01:06 PM

Ignorant or Frustratingly Stupid

Either you don't know what free market means or you are frustratingly stupid. The US economy is not a free market - there is regulation and price fixing. The problem isn't falling prices, recession, or depression. These are effects/solution to the malinvestment caused by price fixing. The various bailouts are attempts to not go through the solution to the problem.

Mort Utley of IN @ Mar 31, 2009 17:33:35 PM

Ballinger is right

The Fed and the European Central Bank are most responsible, and regulatory agencies that changed trading rules and looked the other way at over-priced stock offerings and LBOs didn't help. But both Central Banks just kept pumping out more and more cheap money and financial institutions just had to find a way to lend more out...at any price, any risk. You can't blame the crisis on free markets because governments got involved at every level and were the worst spending offenders. The BCE was giving away money to European banks even when it was clear we were in a period of excessive speculation. It began before Iraq to save the German economy, should have stopped when the war profits started rolling in, but didn't. Now they use taxpayer money (future tax revenues if they are possible) so that the worst offenders can pay off credit default instruments, bad loans, instruments that guaranteed excessive returns. I don't think the current administration even understands what went on. Government bankruptcy may not be far from the horizon.

Dave of FL @ Mar 23, 2009 15:33:11 PM

free marketeers

wake up people! for the light has come up to rescue us from the darkest nigh.............

In theory free markets-meaning no regulation, no oversight and no intervention when things get out of hand would be something brutal. The survival of the fittest, to use a darwinism phrase, should be something of yesterday. At this time an age I really can't understand why there folks out there believing this crap of free market and how things would be much better this way....come on.

On the other hand people that believe that the role of government is to be mediator between the clash of two different kinds of interest in society (business people and the rest of us consumers) are also a bit naive.

The reality so far in history is the the powerfull has always used their power to get from the government what the want. When this happens is when you see the economy thrive and prosper(the bubble) and then a few years down the road you really see the results (the burst of the bubble) Then the government like the only one standing has to come to the rescue. After years of pain and suffering the powerfull takes over again to start this endless cycle of bubble an burst.

We will have educate more ourselves and accept the fact that we live in society. That humans are before anything a social animal that can not leave apart from others. At the same time we must also accept the fact that human nature determines many of our activities in life being the persuitamong others, of our own private-personal interest before the interest of the others the engine that moves the wheel.

The question that we should be askinbg to ourselves is how to stablish an equilibrium between these two factors.Perhaps some day in the future we would figure this one out and leave this nightmare of bubble an burst buried for good.

W. R. Bennedict of FL @ Mar 14, 2009 10:09:26 AM