This is a blog speaking out for those of us in the Middle. We are neither right wing, nor left wing, and the extremists on both sides scare the hell out of us.
Tuesday, August 9, 2011
UK Riots
The riots have hit my wife's home town in England, fucking brilliant.
America, laughs as they don't understand why the riots started in the first place.
The Free Market, and Regulation The whole idea of a "Free Market" economy, is that the "cream", rises to the top.
The Fallacy of a "Free Market" economy is that it benefits the little people by competition driving the price down. It doesn't. A "Free Market" economy only benefits the companies who have a large market capital. The "Large Cap" companies, can effectively drown out their competition by lowering their prices, to lower than the other company can accept. Effectively make them unprofitable.
If you want an example, take the Monopoly law that was put in place because of Ma Bell. Ma Bell had such a big market cap, that they could price fix at a loss, any competitor, and still make an overall profit.
In essence, Ma Bell could eliminate ALL new buisness because they could afford a small hit to their total profits. Once the competition was elimated, they could price their phone service at whatever they wanted to...... Because now there was NO possibility of completion.
So if that was allowed to continue, we would ALL be on Ma Bell, even Cell Phones. With no competitor in sight (because Ma Bell could buy them). Ma Bell would have a corner on the market, and we as individuals would have to pay their price.
But here is the price we would pay for that.... Any Innovation, would be bought up by Ma, Bell. So Cell Phones.... Ma Bell, so Texting, Ma Bell, Camera on Phones, Ma Bell. Internet Phones? Ma Bell would be able to set the time table for them.
The only that was thing keeping us from Ma Bell taking over everything, is our anti-monopoly laws, IE government regulation.
If you want a "Free Market Economy in totality", you have to de-regulate Monopolies.
The Free Market, and Regulation
ReplyDeleteThe whole idea of a "Free Market" economy, is that the "cream", rises to the top.
The Fallacy of a "Free Market" economy is that it benefits the little people by competition driving the price down. It doesn't. A "Free Market" economy only benefits the companies who have a large market capital. The "Large Cap" companies, can effectively drown out their competition by lowering their prices, to lower than the other company can accept. Effectively make them unprofitable.
If you want an example, take the Monopoly law that was put in place because of Ma Bell. Ma Bell had such a big market cap, that they could price fix at a loss, any competitor, and still make an overall profit.
In essence, Ma Bell could eliminate ALL new buisness because they could afford a small hit to their total profits. Once the competition was elimated, they could price their phone service at whatever they wanted to...... Because now there was NO possibility of completion.
So if that was allowed to continue, we would ALL be on Ma Bell, even Cell Phones. With no competitor in sight (because Ma Bell could buy them). Ma Bell would have a corner on the market, and we as individuals would have to pay their price.
But here is the price we would pay for that.... Any Innovation, would be bought up by Ma, Bell. So Cell Phones.... Ma Bell, so Texting, Ma Bell, Camera on Phones, Ma Bell. Internet Phones? Ma Bell would be able to set the time table for them.
The only that was thing keeping us from Ma Bell taking over everything, is our anti-monopoly laws, IE government regulation.
If you want a "Free Market Economy in totality", you have to de-regulate Monopolies.
Try to defend that choice.