This image was posted by a reader in a previous post and I think it is just an excellent illustration of the beauty of the market.
What I think the reader was trying to communicate however was how awful the market and the market mechanism is. See, look! Those greedy merchants (ha!) are jacking up the prices of goods just to make a buck. How terrible!
I say what we see above is in fact fantastic and a great example of why the market mechanism is about as close to a miracle as there is in this flawed world.
Yeah, I mean who wants lower prices and a higher standard of living anyway right? Screw that. We want higher prices and less for each dollar we earn. That’s much better.
Some folks won’t like this cartoon largely because it hits a little too close to home. Not because it’s wrong.
Look, most of us who understand the moral and functional superiority of free enterprise flirted at some point in our lives with socialism. We get the appeal. Thing is socialism is not a system that anyone should commit long term to. Socialism, even in Scandinavia, will always disappoint. It’s doomed from the start. It’s fundamentally unsustainable.
This is good news. Let’s hope Doctor Calabria gets a prominent seat at the White House economic policy table.
These are opposites, not similars.
This seems so obvious to us. But we must admit it doesn’t seem obvious to many.
Part of this is just simple economic ignorance. Part of it is that what are called “free markets” are often not very free at all, thus skewing people’s understanding of such markets. (A better term is “free price system,” but that is for another post.) Part of it is opportunistic, anti-market/pro-state political people seizing on the central bank created 2008 Crash as some sort of indictment of capitalism and free markets even though 2008 represented a failure of CENTRAL PLANNING and not of free markets.
OK, this is a pure dose of some libertarian/free enterprise white lightning. It’s hardcore and it will blow the minds of many of our statist friends who visit this site. Personally I find these arguments to be pretty much common sense. But the ideas below are not “officially approved” opinions. The video will challenge the thinking of many people. So be warned. (Just a trigger warning for all you socialists out there. For the record many of the great free marketeers in history started as socialists.)
Federal Reserve “independence” is a convenient untruth for the Fed and for many in the Washington political class. The Fed is absolutely influenced by politics. This is evident even to the fairly casual observer.
(From The Dallas News)
Carnegie Mellon University’s Allan Meltzer, a distinguished monetary economist, had this to say about Fed policy during the crisis: “Under Mr. Bernanke, the Fed has sacrificed its independence and become the monetary arm of the Treasury.”…
…Bernanke’s Fed seemed to care just as much about the health of prestigious financial houses as the state of the economy.
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?