Thursday, November 15, 2012

Do You Want to Live in a Free Market Society or One Controlled by Government?

I found this video on Youtube today that explains why Free Market Economics run counter to Government Controlled Markets, using the current SuperStorm Sandy example.
And in regard to those $30 flashlights?.....I'll contend that given the prices in Manhattan, $30 for a flashlight is NOT gouging anyway.  I've had to buy things in Manhattan and that place is ridiculously high anyway on EVERYTHING!lol

So are you a Keynsian or a Hayekian when it comes to economic theory?
Do you believe in truly free markets(not what we have now in America, which is NOT a free marketplace but Crony Capitalism)?
Or do you believe that government should control our marketplace and cause artificial dips and highs?


1 comment:

  1. Not sure there is a win-win situation in this case. Using a storm, earthquake etc. as an example may not be the best course. Prices have always gone up...also known as supply and demand.

    Last year in San Diego during a power outage, our WalMarts closed their doors...understandable. Vons closed, but passed out the ice they had, that would have melted for free. The only place opened was a 7-11. No lights, but still they were selling whatever the customers needed. They did not raise prices, one I don't think they would have even if they had enough time to.

    The last time I bought a flashlight and a good one at that, I paid $25. That was over three years ago. Far too many in this country want Macy's quality, but Walmart prices. Sometimes it is simply a matter of one or the other, but not both. Prices have gone up on just about everything in time.

    My 24 yo and his E30 (1980-1990's BMW 325's) buddies have been complaining about the higher price on E30's. Clearly a supply and demand issue there.

    Will the government go after the fabric companies for raising prices on fabric. Just because the price of cotton went up one time to $1.20 per pound? Did the fabric companies lower the prices when cotton went down to 70 cent per pound? No and NO.

    But hey, just wait until next year when just about everything goes up sky high due to the losses cause by this years drought. Boy will there be outrage then.

    I really do not think it is about a free market vs. the government control. The government is ONLY getting involved when they think their votes are at stake. My case in point is the fabric prices. It matters to only quilters and such, not the government. Was it price gouging? Yes. But again, votes are not at stake, so the government does not get involved.

    Another silly example. Years ago, there was a group of quilters who went before a Senate committee in regards to quilts coming from China. The quilters were nearly laughed out of the meeting UNTIL they proved to the committee members that the government lost over 49 million dollars in TAXES(over a 7 year period), due to loss revenue from quilters not buying fabric etc. here in the US, due to lack of their quilts selling. Why pay $100 for a US made quilt when you can buy a Chinese made quilt for $19.99? Well when the government realized the loss of tax money, they payed attention and ordered changes to the Smithsonian's deal with a China company.

    So to me it is pretty much a free market UNTIL the government thinks THEY are being cheated.

    blessings, jill


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