There is a theory that seems almost holy to Libertarians and which many posters dodge like hell. So if there are any Libertarians who would like to take a crack at responding directly to a point, I'd like to hear their views. Of course, if they all use the same dodges and analogies I got from another Libertarian, then quit asking why no one takes you guys seriously.
Here it the central economic theory I've heard from Libertarians and why I dispute it:
"The Market Will Correct Itself". They claim if a company is not nice, people won't buy its' products and services, they won't work there and The Magical Market will make the bad ol' company go away! Wrong. It doesn't.
Without government regulation, companies hurt people (e.g. unsafe working conditions, denial of health benefits, toxic dumping, unsafe oil rigs etc...).
They make harmful products (e.g. dangrous drugs, cars that blow up etc...).
They treat employees horribly (e.g. discrimination, wrongful term, etc...).
And no - those companies don't disappear if they are bad because "the Magical Market Corrects All".
The Market does little to correct anything a company does, once it gets big enough. That's just plain fact.
So the biggest flaw I find in Libertarianism is the belief that companies will regulate themselves, if simply left alone. History proves this is not the case.
This is why a strong centralized government and reasonable level of regulation is necessary to the well-being of citizenry.
I would welcome any commentary from Libertarians on this and will not stoop to the petty insults, labeling etc... that the weak use as their only means of debate. However, I will challenge you if your reasoning is flawed! Cheers, FS
okay... I'll give it a shot...
in a truly unfettered marketplace, where competition is allowed to flourish, the market would tend to correct itself, and little if any government regulation would be needed...
problems arise when government gives special consideration to a select few large companies, via legislative action that stifles competition... which ultimately creates virtual monopolies in certain sectors of the economy... not to mention creating companies that are "too big to fail"...
if you look at the record, you would find that the companies that are most needing "regulation" are the very same companies that became artificially huge due to favorable government actions on their behalf...
regarding concerns about unsafe working conditions, toxic dumping, harmful products, etc., these would rightly be addressed by property-rights and liability laws, which do not constitute regulation, as such, but come under the judicial protections afforded us by a properly-functioning government...
Hmm. A reasoned, intelligent and civil reply. So please understand that challenging or disagreeing with a view by no means, is intended as disrepect for the person with that view.
The challenge with the concept you have been kind enough to expound on, is that it has never proven accurate in practice. I am reminded of Communism. In theory it sounds wonderful! In practice, it never turns out that way.
For example, America prior to the 20th century. Slavery. When there wasn't slavery, there was horrible discrimination. There were sweatshops where women and children work all hours for poverty wages - and even then, they were often screwed out of those wages and fired if they refused the sexual advances of managers etc... There was no defense and certainly no retribution. Did those shops just correct themselves? Nope. Nor did they suffer a loss of sales. Nothing.
The coal mining industry? Did the owners just decide to make working conditions safer? No.
The point being, America was not the Libertarian Utopia some of your compatriots claim it was, prior to the 20th century. Well maybe it was for rich, white land owners. The closest things I've seen to Libertarian economies / governments, have been Hong Kong and The Ukraine. To some degree, India. Even Mexico might apply. Very little government interference with business. Almost no regulation or enforcement of environmental issues, wage & hour, discrimination laws, no such thing as an equivalent of OSHA and so on. Guess what happens when companies realize the government isn't going to help anyone they screw? Guess how much power the citizen has against say PEMEX in a country where the market is left to correct itself? Or what they odds that they would be stupid enough to even file a lawsuit?
I mean, I get the part about companies will lose revenues if they don't provide a good service, product etc... but seriously, does anyone think less people are shopping at Wal-Mart just because it has been shown to systematically disriminate against women on a widespread basis?
Nope.
Has Wal-Mart disappeared?
They're more profitable than ever.
Of course, this is far from an unfettered marketplace but I can't think of a time or place this one particular aspect of Libertarianism proved accurate.