jvquarterback wrote:
The problem with the bailouts is that we don't know what would have happened sans bailout money.
Yes we do. The poor investments would have been liquidated and the economy would have corrected itself. Just as it has in the past. The government wouldn't be throwing more of my money down the drain into failed businesses. The doomsday garbage was just that - garbage. And now that the banks have succeeded in robbing the people, you are offering excuses for Mitt Romney's abandonment of free markets.
Yes the economy would have corrected itself. Where we disagree is the extent. When I saw the banking system and worldwide liquidity locked down; that to me was teetering on the edge, it was not a stretch for me to get to a doomsday scenario due to absolute necessity for liquidity in our economy. Businesses require liquidity, liquidity comes from banks and financial institutions. we had lost 2 of the 3 and that's why the banks needed help; did it go too far? perhaps but no one had ever done anything like this before but the point is it didn't fail. And for the record, I've said nothing of Mitt Romney.
jvquarterback wrote:
100% free markets have been tried and failed.
False. Name one time or place where a 100% free market has existed.
1920s had neither the SEC, SOXs or Frank Dodd so I'll argue that it was a "freer" market than today. Enter Great Depression #1 . One major cause was no limit to investors borrowing against valued paper stocks to buy more stocks. Works great when prices are going up (and ironically not dissimilar at all to buying 5th level AAA tranche mortgage backed securities that was a major cog in the 2008 crash...)When prices started to go down, and margins were called,there was no underlying cash to back up losses, it was worthless paper. The market allowed and encouraged this practice and the economic price was catastrophic. I'm not arguing that we had a 100% free system back then, but the SEC was created and I'd argue that they've helped the system much more than it's hurt.
jvquarterback wrote:
They don't voluntarily pay taxes for things like defense and roads,
So what? Maybe roads aren't what a free people would choose - maybe it would be railroads or something else. If they won't pay for defense then they won't be defended. Fine.
This is an argument against basic economics and basic government providing for the common welfare. I, for one, prefer a neutral police force rather than a private commercial armies (is that really what you want?) and believe that the US highways and trucking system might have done more for our economy than virtually any other improvement. The fact that you want to argue for not just an isolationist US international policy, but a return to city states run by the largest firms... Ron Paul seems like just the candidate for you. That sounds like Mad Max and the ThunderDome hell to me.
jvquarterback wrote:
they employ little children, have terrible working conditions,
Evaluate the employment levels of children in fields where the government became involved (manufacturing) and fields they ignored (farming). You'll notice a difference. The rate of decrease of child labor was faster for farming.
Now look at injury rates prior to and after OSHA began regulating working conditions. The rate of change in workplace injuries slowed and has come to a standstill now that there is government regulation to protect companies from the free market of having to provide a safer workplace to entice workers to join their company
You might have more knowledge here than I do. What I know is that kids worked in coal mines and slept in factories. Now they don't. I have no problem with kids working on a healthy farm.
This from Osha's website: in 1970 it was estimated that 14,000 workers were killed on the job. In 2009 that number was 4,340 during a time when the US workforce
doubled in size. Not sure what numbers you're looking at, but that's impressive. If you try and tell me that regulations can hurt businesses, I'd agree with you and I'd want to get them to the right level. if you try and argue that ALL regulations are harmful; i don't see how that argument holds much water.
jvquarterback wrote:
have no respect for intellectual property, and create natural and unbreakable monopolies.
It's funny you put these two together. Did you know that the first patent law was called the "Statute of Monopolies?" Oh, and are you still paying royalties to the guy who invented fire? There has never existed a monopoly without the use of force by the state. Find one. They've never existed. But I could find 187,000 state granted monopolies in the form of patents in the last year.
I didn't know that. interesting. but why would you suggest I pay royalties to the fire guy? the beauty of patent law is that it doesn't last forever. it gives the innovator a plentiful head start to earn the profits for their work and then opens it up to everyone. How can you know what the first patent law was and not know that patents last no more than 20 years?
Could you help me understand how 3 of the largest monopolies ever created were government sponsored? I thought of Microsoft, Standard Oil, or US Steel. All 3 were private enterprises, and all 3 were ultimately attacked by the justice dept, not supported by it.
jvquarterback wrote:
Regulation can create a level playing field
No it cannot. A fellow named George Stigler won a Nobel Prize for describing regulatory capture. That is the use of regulation by large, established companies to prevent innovation.
Sounds like a riveting read. Please note I said "can create". You describe one element of a vast system that you don't think is working that is definitely fixable. That's hardly an argument for its entire removal.
jvquarterback wrote:
You are right that innovation has stopped but you've been deceived to think that the answer is anything less than freedom and free markets.
America did the best when it was the freest of countries. If you want America to lead the world again it will have again become the freest society on earth. Anyone who supports the bailouts would prevent America from attaining that position.
There were a lot of factors that led to America's Industrial age growth and I can see why you'd want us to emulate the growth from that time. But economics is not a single bullet game. You can't just wave a magic "free market" wand and duplicate an economic event from 150 years ago, especially when the two economies are so fundamentally different and the world we operate in is not even comparable. Yet you seem to think that "anything less" is causing all our economic woes.
I feel like you're trying to tell me the reason we have to drive so slow is due to regulatory and prohibitory stoplights. if we could just get rid of them and get to a "Free system", we'd all be able to drive faster. Everytime a red light shows, freedom is blocked and I'm not allowed to drive where i want! In the 1820s they didn't have any accidents at all! let's do THAT again!.
Hopefully we can agree that stoplights are part of an efficient system and just because a few rogue drivers ignore lights and cause accidents, doesn't mean we need to force people to walk to work.