It’s not free markets that have failed us but government distortion of them

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.

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Society Without the State | Speaker Panel: Ron Paul, Judge Andrew P. Napolitano, Lew Rockwell, Jeff Deist, and David Gordon (VIDEO)

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.) 

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Politics at the Fed is the rule, not the exception

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.

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Bigger government does not mean more “social justice” in fact it often, usually, means the opposite

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,

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Logical end to socialism in Venezuela – You Won’t Believe What We Saw In Socialist Venezuela!! (VIDEO)

And…Fail.

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.

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Venezuelan Government Imposes Daily Four-Hour Blackout Nationwide

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.

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Congress is about to vote on what Rand Paul calls “the biggest anti-poverty initiative” in 50 years

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?

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Why free prices and free markets are absolutely vital to prosperity (VIDEO)

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.

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Why do so many people fear freedom and free enterprise? (Part 1)

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,

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Governments like monopolies – that they create

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.

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China tells workplaces they must have Communist Party units (Remember when the FCC wanted govt monitors in newsrooms last year?)

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.

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Impoverishment: America’s New Normal

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.

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Walter Williams: Free Markets Are Key To Global Prosperity

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).

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