The rise of libertarianism has been steady, but it wasn’t very long ago that free markets and free minds were considered outside the norm. During the dark ages of statism, the time of FDR, and Mussolini, LBJ, and Brezhnev, the idea that people should run their own lives was considered radical. Though we were a country built on the ideas of “life, liberty, and the pursuit of happiness” we had long abandoned these principals for a planned state. We thought the state was “modern.” We thought it was “forward looking.” It took us 70 years to figure out that centralized planning is no way for humans to live. Well, not all of us have figured this out yet but times are definitely changing.
Capitalism is dynamic. It is ever changing. The freer it is the better it serves the “market”, also known as “people.” If innovation is allowed to happen. If new ideas can blossom, good things happen for society. Jobs are created. We move forward and life gets better.
As your mom (hopefully) said, “Cheaters never win.”
They do however get rich sometimes. And for some that’s all that counts.
Live by crony capitalism, die by crony capitalism. Tesla last week saw that sometimes the crony sword swings the other way. The car company has essentially been shut out of New Jersey thanks to the local car dealership lobby.
Unemployment (the official unemployment number) keeps going down bit by bit because people are dropping out of the workforce not because people are newly employed.
Though we gave a mixed review to The Economist’s Index of Crony Capitalism, we are very pleased that such an index now exits even if it is flawed. (Too much focus on billionaires, not enough focus on broader more middle class crony capitalism. The index also encourages the idea that crony capitalism, which is created by regulation to a large degree, can be regulated away.)
A couple of things here.
It is probably safe to say that government workers are nowhere near as efficient as private sector workers either. It just makes sense, the reality of the marketplace is suspended for government workers. (I have known a few.) The private sector seeks efficiency. Government, well let’s just say it doesn’t.
It seems fairly obvious that it would not. It is very hard for a large business to remain a dominant player without gifts from the government. Big business is not enamored with the free markets libertarians advocate. In a free market big businesses are constantly sniped at by smaller but more nimble competitors. Smaller newer companies are hungrier and usually have newer equipment. They often have fresher personnel. Free markets make life hard for big business.
The big banks, which in 2008 nearly went belly-up because they were overleveraged and needed a taxpayer funded bailout in order to survive a reversal in the economic tide, are even bigger today. They pose more risk than they did 5 years ago. Because they have been designated as “too big to fail” the megabanks now enjoy an implicit subsidy courtesy of you and me. Their borrowing costs are lower because we backstop them. Because of the backstop and lower costs bankers are incentivized to take on more risk. Sooner or later this will create major instability as the market mechanism has been distorted and will seek to correct for this distortion.
The bankers truly, deeply fear Bitcoin. Again, I say this not as an advocate. I prefer the old gold and silver. But I love, I mean love that Bitcoin is tying the establishment in knots. It is super fun to watch. Read, please read, the attached article as the author waxes on and on about how only white males like Bitcoin anyway so it should be taken down.