Free Market Foundations

Discussion in 'Economy' started by antagon, Aug 21, 2010.

  1. antagon
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    antagon The Man

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    Market principles are central to the form and function of capitalism itself. Free market principles remind that heavy-handed public or private manipulation of markets can destroy the efficiency of the capitalist economy, and corrupt the delicate flow of supply, demand, price and purchasing power.

    Its when free market theorists claim that freedom in a market is the most crucial component of its function, that I feel the concept falls short of delivering. Looking at the world's most efficient markets -- those which make the best utilization of factors available to them, and which return the most to the human participants involved -- history makes an argument contrary to laissez-faire theory. These markets are heavily regulated. They are taxed with the intent to support infrastructure crucial to the market, but go one further to employ taxation as a mechanism to circulate purchasing power throughout the market.

    Of course the free marketeers object to these very characteristics, but what is their presumption based on, but some books from 18th and 19th century economists?
     
  2. Metternich
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    Metternich Federalist Farmer

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    If you believe that the most current "free-market" (to use a trite and over-politicized term) equilibrium scholars are from the 18th and 19th Century; then there's really nothing to talk about.
     
  3. antagon
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    antagon The Man

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    i guess they couldn't 'from' 200 years ago. that would be disgusting. :doubt:

    how do those who press for freer markets nowadays reconcile their philosophy with the traits of the world's most efficient economies -- all which employ fairly heavy regulation and proactive redistribution of wealth?
     
  4. Kevin_Kennedy
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    Kevin_Kennedy Defend Liberty

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    We reconcile it by looking at the global economic meltdown that occurred in 2008.
     
  5. antagon
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    antagon The Man

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    what is the end of a business cycle for some is a philosophical vindication for others. dissenters could easily point to the same crisis and argue that lax regulation of futures and lending standards precipitated the 'meltdown'.

    any credibility outside the jaded blame-game the crisis has become?
     
  6. Kevin_Kennedy
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    Kevin_Kennedy Defend Liberty

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    And yet you yourself mentioned that the most successful countries in the world today are mixed economies with regulation, with high taxation, etc... So, in my opinion, you can't have it both ways. Either the global economic system was brought to its knees by rampant laissez-faire policies, or your most successful countries are mixed economies.

    However, it's really how you see things. Maybe you can accept that the economy was highly regulated, but you think it needed more regulation. Or, and this is my perspective, maybe you saw the entire system as being completely unsustainable in the long run. It's all how you interpret the facts.
     
  7. Samson
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    Samson Póg Mo Thóin Supporting Member

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    "World's most efficient economies?"

    "Employ fairly heavy regulation?"

    "Proactive redistribution of wealth?"

    Let's assume that I would press for a more free market.

    Wouldn't I be assuming that the market could be more efficient than the status quo?

    Wouldn't I be defining a "free market" as one that has fewer regulations?

    What does "proactive redistribution of wealth" have to do with the market? Do you mean taxing the market? Do you mean taxing transactions? Do you mean taxing income?
     
  8. uscitizen
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    uscitizen Senior Member

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    And the difference between public and private manipulations has gotten pretty small.
     
  9. Samson
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    Samson Póg Mo Thóin Supporting Member

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    How would we even know?
     
  10. uscitizen
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    uscitizen Senior Member

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    Exactly!
     

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