The "Magic Market" Myth

[Truthmatters]

POAC Columnists


Looking back through history, we might wonder how it is possible that intelligent and educated people once accepted uncritically such notions as astrology, judicial trial-by-combat, the demon-possession theory of disease, and alchemy. Today, more and more sophisticated observers of society and politics are wondering how homo economicus, a creature bereft of sympathy, humanity, and noble aspiration, and "the perfect market," a "place" devoid of any social contacts more elevated than market transactions, ever came to be regarded by our political elites as the foundation of a just political order.

 

[Kevin_Kennedy]

The rest of us wonder how people can call for more government intervention despite the government's intervention in the market ruining our economy and pushing us toward a recession.

 

[Truthmatters]

That is not what the experts say.

Like the Head of the SEC himself.

 

[Kevin_Kennedy]

That is not what the experts say.

Like the Head of the SEC himself.

It's not what the experts say because they don't want to admit their Keynesian economics was wrong, but it is what the experts in the Austrian school of economics say.

 

[Truthmatters]

Hes not a keynesian

 

[Truthmatters]

Christopher Cox - Wikipedia, the free encyclopedia

 

[Truthmatters]

Please provide any period in the history of man which proves the "Magic Market" actually will work in the way the myth states?

 

[Paulie]

You mistakenly assume that free marketers think the free market is perfect.

Despite our society never having even witnessed a real free market, I still recognize that it would not be perfect, regardless.

Someone will always be there to ruin it for the majority.

As if the government doesn't have people of their own ruining things for the rest of us.

We're supposed to trust the government to do what's best for us? Have you studied history?

 

[Truthmatters]

Democracy does not just trust the leaders if its done right, we chose and fire our representatives.

 

[Paulie]

Please provide any period in the history of man which proves the "Magic Market" actually will work in the way the myth states?

I've been going to my local convenience store for years and making transactions that are between myself and the store. Neither of us need the government to tell us how to do our business. I walk in, and I select something I want that I feel is worth the price being asked. Win-win situation.

Why do we need the government to step in on banking? You can't figure out how to handle your own money?

 

[Truthmatters]

“economic man” in reality does not exsist.

 

[Truthmatters]

I've been going to my local convenience store for years and making transactions that are between myself and the store. Neither of us need the government to tell us how to do our business. I walk in, and I select something I want that I feel is worth the price being asked. Win-win situation.

Why do we need the government to step in on banking? You can't figure out how to handle your own money?

Because the current situation is what we got when we deregulated.

 

[Kevin_Kennedy]

Because the current situation is what we got when we deregulated.

Except that we were heavily regulated by the government and Federal Reserve.

 

[Paulie]

“economic man” in reality does not exsist.

I'm a perfect example of "economic man". The market almost never gets the best of me. Why? Because I have a desire to learn, and I'm not a fucking moron.

You ought to be ashamed of yourself if you can't make the same claim.

 

[Truthmatters]

In neo-classical economic theory, “economic man” is a hypothetical individual who is a complete egoist, motivated solely by the self-interested desire to maximize his “preference satisfaction.” Homo Econ’s motivation is manifested by his willingness to pay for these satisfactions in a “free market.” Neo-classical theory also postulates that “all goods that matter to individuals ... must be capable of being bought and sold in markets” and “anything that is valued instrumentally ... can be handled by economics, be it acts of friendship or love.” (Freeman and Edwards. For citation of sources, follow this link). “Economic man’s” behavior is described, in neo-classical jargon, as “rational.” By implication, the self-sacrificing behavior of saints and heroes is “irrational.”



If you are Economic man then you are a sociopath

 

[Truthmatters]

Except that we were heavily regulated by the government and Federal Reserve.

And when the SECs hands were tied to police the securites market like they were after GLB 1999 then the market greeded itself into a death spiral.

You are not going to win any converts with that kind of performance.

Please , I beg of you show me one period in history where and unfettered market worked to the advantage of the masses?

 

[Kevin_Kennedy]

And when the SECs hands were tied to police the securites market like they were after GLB 1999 then the market greeded itself into a death spiral.

You are not going to win any converts with that kind of performance.

Please , I beg of you show me one period in history where and unfettered market worked to the advantage of the masses?

There was no period with an unfettered market, so how I can show you? However, I suggest you look into the Free Banking Era.

Champions of Nonsense by Thomas J. DiLorenzo (This is an article about Abraham Lincoln, but it does talk about many economic matters of interest)

Bibliomania: Free Online Literature and Study Guides (May I also recommend Adam Smith's The Wealth Of Nations)

 

[Truthmatters]

Now can you tell me why it has never been put into practice?

 

[Kevin_Kennedy]

Now can you tell me why it has never been put into practice?

Nope.

 

[Truthmatters]

Thomas J. DiLorenzo - SourceWatch

The guy is a corporate whore