Friday, September 03, 2010

The Free Market Failed?

I hear this nonsense all the time. The trouble is often this is followed by calls for more government control. When individuals say they are against capitalism what they really mean is crony capitalism. That's a fat cat free market. It's when the government colludes with the rich and powerful to force us knowingly or not to do something. Sadly, the answer will never be to have the very same corrupt government mind more of our behavior for us. At the end of the day it is the fundamental reason the economy is in shambles.

If we had a government that ONLY protected the conditions whereby liberty could prevail, does anyone seriously believe it would be tough to find or make a job? Do any of the free market haters actually understand the enormous restrictions placed on job creation by the government as it is now?

Let's pretend that a new disease arises - bureaucratititus. It spreads like wild fire effecting only government workers. The only cure is one year of bed rest. So off our bureaucracy goes to follow the doctor's orders. Right off the bat nobody is going to pay income tax. That translates into a sudden 50% increase in available capital. It's a good thing too because all of the building code tax enforcers are ill. Free Americans don't require a note from the government to fix up their property nor be required to pay more tax for the privilege. The price of goods plummet as no gas tax or other transportation restrictions are enforced. Additionally, new suppliers rise up from nowhere to take advantage of the truly free market opportunity to be productive for profit. This surge in competition drives prices lower. At the same time job growth explodes leading to the great worker shortage. This results in steadily rising wages and benefits as employers compete for workers.

Lots of new commodities would no longer be illegal like marijuana leading to still more commerce. Plus, formerly illegal personal behavior like prostitution and gambling would not be criminally prosecuted. In fact, such a high percentage of the population would be busy creating wealth that they get to keep there would be little time available to commit actual crimes like murder, rape and robbery. Sadly, today with the government micro managing everything these real crimes go unpunished most times.

Once the year was up and the bureaucrats returned to their desks does anyone believe we could go back to the old way again? It's not likely having experienced the prosperity of freedom engaged in responsibly. A sick, collapsing economy will have the same effect socially as bureaucratititus. The economy has been strangled to death by the government and the whole system is due to collapse soon. The DOW has been manipulated up in preparation for the Iranian war or the next false flag attack. Thereafter the market will be allowed to crash but this will be blamed on the "event." This next week or so will be a very dangerous time. Stay home if you can. But keep your heads up if you can't.

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