Quote of the Day: “Rational people recognize this $20 trillion for the supernatural scale of obligation it represents, and understand that it will never be paid back, so, what the hell? Why not just drop the pretense, but keep on working this racket of the government borrowing as much money was it wants, and the Federal Reserve creating that money (or “money”) on its computers to infinity. Seems to work so far. Rational people would also suspect that at some point, something might have to give.” – James Kunstler
Basic economics: for most items the demand exceeds the supply. In other words, people will almost always ‘want’ more than is available – or than they can afford. Gasoline, homes, automobiles, crayons, ice cream – you name it. A question every society must answer is how these items will be rationed. In a free market it is rationed via voluntary transactions with voluntary price agreement, i.e. no price setting and no requirements for how much you can or cannot purchase- and no one making you purchase the product or denying you the opportunity to purchase the product.
The regulating factor in this model is price – which is dependent on supply and demand. The system is regulated by the opportunity to undersell the competition. In this model the entry into business is not artificially elevated by taxes, regulations, fees and legislation – hence the motivation and opportunity exist to enter a market and underprice the incumbent players. This controls the price. This is why free market capitalism is the only model whereby you make money by serving others rather than by pillaging them. You offer a better value than the competition and the competition must improve or go under – and the new opportunities for competition are endless in this model because government is not interfering to protect the market share of incumbent enterprises.
The system we have today is not free market capitalism but corporatism – the government exist primarily to pass taxes, regulations, fees and legislation that protects incumbent businesses and raises the bar to new competition entering the market and underpricing the incumbent players. In the current model the government explicitly interferes to protect incumbent business enterprises – and it is often tied to the financial future of the politicians. Most often this interference is sold as a ‘benefit’ to the public when the end result is the removal of choice in the market place and either public dollars being shoveled into the corporation or a legal requirement that the citizen must give his dollars to the corporation or face the wrath of government.
Nearly everyone understands that the current system sucks. It holds wages down and it encourages non-productive debt and redistributes trillions of dollars from the many to the few – because it is based consumerism and corruption that works for the corporations and not on investing in new enterprises that in return would raise wages and expand opportunity.
Some people think they prefer socialism where the rationing, pricing and supply of products is determined by government – and the demand is artificial and the result of the government use of force. This model is nothing more than corporatism writ large. There is a delusion that somehow the people who would be making these decisions of who gets what and how much at what price would some how be capable of making wise decisions and making it ‘fair’ – and not continue to work at the behest of the corporations.
There is absolutely nothing in all of human history to support that concept – and it does not matter if one looks back one hour into history of a hundred years. Allowing a select group to make these decisions is just foolish. They cannot possibly know what the demand will be for product next year- and the failures are always excused with propaganda and force while always benefiting the few. Just the truth.
Other Side Quote of the Day: “I am a socialist.” – Bernie Sanders
Quote of the Day: “Hate can be a deeply stimulating emotion. The world becomes easier to understand and much less terrifying if you divide everything and everyone into friends and enemies, we and they, good and evil. The easiest way to unite a group isn’t through love, because love is hard, It makes demands. Hate is simple. So the first thing that happens in a conflict is that we choose a side, because that’s easier than trying to hold two thoughts in our heads at the same time. The second thing that happens is that we seek out facts that confirm what we want to believe – comforting facts, ones that permit life to go on as normal. The third is that we dehumanize our enemy.” – Fredrik Backman
I had a conversation with a fellow this past week that went like this –
He is in his 30’s, professional, accomplished and works for a well-known corporation. He told me that he is leaning toward socialism.
I ask him why and he responded that capitalism is immoral and undercutting people.
I responded that we have not had capitalism in this country in a very long time if you define capitalism as free markets, i.e. transactions and prices are voluntary and no one can prevent or force you to buy something or set the price at which you must purchase something.
He said that he had to agree.
I further added that what we have is corporatism, cronyism – that each of these laws, taxes and regulations are intended to work to the favor of the corporations in that they snuff out choice and raise the bar in order to eliminate or prevent competition.
He thought about it and again said that he had to agree.
I finished my point by stating the obvious – socialism is simply more laws, taxes and regulations that snuff out choice and competition and, no matter how much you tax the corporations, socialism simply guarantees the corporations a market and a profit – which the corporations are all for.
Again he agreed.
He then thanked me for having the conversation and told me he had never thought of it in the terms I explained.
One person at a time.
Other Side Quote of the Day: “In Chapter 4 we saw that the fact that a being is a human being, in the sense of a member of the species Homo sapiens, is not relevant to the wrongness of killing it; it is, rather, characteristics like rationality, autonomy, and self-consciousness that make a difference.” – Peter Singer