Socialism has a half life. Once honest to goodness socialism is instituted it is only a matter of time before the system implodes on itself. The primary factor in the speed of collapse is the amount of fat within an economy before massive state intervention and redistributionist policies. If the disease of socialism, hard core socialism, think the USSR, Cuba, North Korea, and even places like Venezuela, really takes hold, if the state assumes pretty much every aspect of the economy,
Another great report out of Caracas. I have to say that these guys have got to be at least a little nuts. Though we are thankful for the light they are shining on the situation in Venezuela.
It takes real work to screw up an economy this bad. When a country which sits on massive energy reserves must cut the lights for 4 hours a day one knows that socialists have got to be running things. In a market economy these issues would be solved pretty quickly or more likely would not happen at all.
But hey, everyone will be equally in the dark. So that’s good.
All I can say is we made the case for making Detroit an economic “free zone” back in October 2012. Not that “free zones” are our idea. Free market/price advocates have made the case for them for years. It’s good to see the idea getting some real political traction.
Free up places which are disasters. Make them business friendly. Lower or eliminate taxes. Let people innovate. Many of our cities have little to lose at this point. Other than a rigid fear of free markets why wouldn’t one want free zones in areas of economic despair?
Prices must be able to move. They are how we derive inormation about what is valuable and what is not. When the price discovery system is skewed or abolished (it’s never really abolished) the economy becomes highly inefficient.
From the master.
Why private cartels are always “floperoos,” and why businesses must have crony arrangements with government to maintain cartels.
Since I write about capitalism and crony capitalism and government and business every day I have the opportunity to read quite a lot about these subjects from various perspectives. I read libertarians, and conservatives, and liberals, and progressives, and just about anyone else who is interesting. I read the comments here at ACC, and at sites all over the web.
One of the things I am fascinated by is the degree to which some people are seriously afraid of free enterprise,
In the effort to inject interesting economic thought into the discussion at ACC we present the following video by Jeff Deist recorded at the Mises Institute. This lecture will likely challenge many of your assumptions about money.
Over the medium to long term the only way a firm or a small group of firms can maintain a monopoly is if it has the backing of the government.
If a firm in a free market attains monopoly status, and this can happen, it won’t last as new firms with better equipment, techniques etc. will enter the market. If however a firm can get in good with the government, then the monopoly firm can get its politician buddies to regulate away competition.
China, despite what you may have heard is NOT now a capitalist country. It is a crony capitalist country. The chief cronies are the members of the old Communist Party.
The Chinese economy is one in which prices are often set by decree, as such there are massive inefficiencies in the system. This is not healthy, and it is destabilizing. The Chinese crony corps knows that there are serious problems with the economy and society, especially as China is witness to its first real economic slowdown in 3 decades.
An excellent article from Jack Curtis at The American Thinker.
America has stagnated. It isn’t dynamic. Government is thick and restrictive. Businesses are not being created at the rate they were in the past. 20% of households (according to the attached article) have no one working. 1 in 5 households have no workers.
A poison cocktail of fiat financialization and massive government has dripped into the American bloodstream over the last 4 decades or so.
This op-ed from Walter Williams comes the same week that the World Bank has proclaimed publicly that it “will end extreme poverty by 2030.” If the institution wants to end such human desperation it would be wise to encourage the rule of law and free markets (and free prices).
I think that it’s funny that David Stockman, Ronald Reagan’s former budget chief, starts his column with this sentence:
“This morning’s market is more erratic than Claire Danes off her lithium.”
Seems a little gratuitously mean. Accurate (?) perhaps but mean. But that is one of the things we like about the guy. His acid.
From a few years ago. Sadly we are headed the wrong direction on the curve these days.
Of course some people who clearly do not understand what makes a market, nor why the market mechanism drives down costs and increases quality of life for everyday people will argue that markets are evil because, well, because they’ve been told all their lives that markets are evil.
If the GOP was seen as a party of genuine free enterprise (I know, don’t laugh), which made the case to all people that free markets and free prices generate prosperity and that government intervention and cronyism lead to stagnation and despair, the party could make serious progress with non-white voters.