Capitalism or mixed economy?

You're actually attacking a strawman & calling it a free market. The present US system isn't Capitalism anymore, it more closely resembles the Fascist model. An example, in a free market Wall St wouldn't be ruled by the SEC.

"Great part of that order which reigns among mankind is not the effect of government. It has its origin in the principles of society and the natural constitution of man. It existed prior to government, and would exist if the formality of government was abolished. The mutual dependence and reciprocal interest which man has upon man, and all the parts of civilised community upon each other, create that great chain of connection which holds it together. The landholder, the farmer, the manufacturer, the merchant, the tradesman, and every occupation, prospers by the aid which each receives from the other, and from the whole. Common interest regulates their concerns, and forms their law; and the laws which common usage ordains, have a greater influence than the laws of government. In fine, society performs for itself almost everything which is ascribed to government."
--Thomas Paine,  The Rights of Man, 1792

by Darren Wolfe (7 articles, 199 quicklinks, 106 diaries, 778 comments) on Friday, February 8, 2008 at 6:09:51 PM
 

Free Markets can have problems

Darrenlobo writes of Thomas Paine and how the economy of the 1790s may very well function without a government in place. Economies through out history have functioned without regulations or governments in place and they worked and self corrected. They did so often brutally, for example if farmers had a tremendous yield the price of their corn dropped so low due to the abundance they had to sell it at a loss and were stuck with what they couldn't sell.

Back in the late 1700s when Adam Smith and Thomas Paine were alive things were much different. Slavery was still legal in the U.S. and shipping goods across the ocean took a very long time and cargo holds were very small. Shipping things 20 miles was quite a task. Economies were very local with only a few novelty items imported or shipped a great distance. These handicaps on the transport of goods could be called a form of protectionism hindering free trade by obstructing its movement.

Trade and the economy of today is much different than anything Adam Smith could imagine. Economists and people need to think of the future and not the past to create an economic environment that works well for the future generations. One that is just and fair for everyone with competition played out under rules that are not written by special interests.

by Gary Denson (2 articles, 0 quicklinks, 1 diaries, 259 comments) on Friday, February 8, 2008 at 8:30:10 PM
 

Re: Free Markets can have problems

Gary,

Bear in mind that economics is about people not times or technology. What worked in the 1700's works just as well now. This is because of the one constant that doesn't change, human nature.

Let me address some specific points you brought up:

"for example if farmers had a tremendous yield the price of their corn dropped so low due to the abundance they had to sell it at a loss and were stuck with what they couldn't sell."

I'm not sure where you got this idea from. In previous eras the biggest problem people had was crop failure, not overproduction. Anyway, today, for example, farmers get about 10 times the yield per acre planted with corn than they got in 1900. This has only helped society become better fed (overfed?) & more affluent. As fewer people are requiered to grow food their labor is available to produce other goods & services, enriching us all. Thank you to Capitalism for producing this abundance.

***********************

"Back in the late 1700s when Adam Smith and Thomas Paine were alive things were much different. Slavery was still legal in the U.S. and shipping goods across the ocean took a very long time and cargo holds were very small. Shipping things 20 miles was quite a task. Economies were very local with only a few novelty items imported or shipped a great distance. These handicaps on the transport of goods could be called a form of protectionism hindering free trade by obstructing its movement."

With all due respect, you're tripping over your own arguments. Slavery was an impediment to economic growth & the antithesis of free trade. Just look at the difference in developement between the industrial north & the slave- economy south for proof.

Since "handicaps on the transport of goods could be called a form of protectionism hindering free trade by obstructing its movement." then free trade should work even better today now that transport is so much easier. In today's global economy competition comes from every corner of the world.

Some further reading on the subject:

Nobel Prize in Economics 2002

http://www.fee.org/publications/notes/notes/HumanBetterment.asp

by Darren Wolfe (7 articles, 199 quicklinks, 106 diaries, 778 comments) on Saturday, February 9, 2008 at 7:15:46 AM
 

Enlightened regulation

Doctor, I suggest you stick to Psychotherapy.  The fallacies in your arguments are obvious, bordering on embarrassing.  There is no alternative to the (free) market.  It's "wisdom" is,as with the speed of light, a constant, by means of which all other components can be evaluated.  I suggest you read some basic economics.  Please don't embarrass yourself further in these regards.

by Moss David Posner, M.D. (7 articles, 1 quicklinks, 0 diaries, 43 comments) on Friday, February 8, 2008 at 11:27:42 PM
 

Errors Contained Deserved a Separate Article

Instead of pointing out here in a comment some of the many erroneous statements and conclusions in this article, I and husband Paul Wakfer, wrote our own article for this purpose - "No Free Market Implies No Hoax of Self-Correction"

**Kitty Antonik Wakfer

MoreLife for the rational - http://morelife.org
Reality based tools for more life in quantity and quality
Self-Sovereign Individual Project - http://selfsip.org
Self-sovereignty, rational pursuit of optimal lifetime happiness,
individual responsibility, social preferencing & social contracting

by Kitty Antonik Wakfer (22 articles, 4 quicklinks, 7 diaries, 128 comments) on Tuesday, February 19, 2008 at 3:20:48 PM