Tag Archives: Free Market

Capitalism And The Free Market

Posted on December 21, 2011 | 4 comments

As I sit here “flying my desk” I continue to receive confirmation notes from Amazon that:

  1. My order has been confirmed
  2. My order has been shipped

These notes come complete with tracking numbers that allow me to view the status of each order and, then, to see where FedEx is in shipping each order.  It’s my hope that in the coming year I will have outdoor cameras/locked delivery boxes that will allow me to view the delivery of each package.

In any event, I am struck by the absolute and sheer awesomeness of a marketplace that is open 7x24x365.  I’m able to shop for goods around the globe at any time of the day.  Most specifically, a time of day that is convenient for me.

In addition to the fact  that the market makes available global goods of all kinds at any time of day, I don’t have to leave my desk, or sofa, or tub or wherever I am accessing that market place from.  I am able to order, pay for and then have delivered to me my goods and never even leave the house.  Depending on my specific state of organization, this may be literally true.  I could order a book and have it delivered to me before I even ever need to leave the house.

And this whole trade I make with the market place makes me richer.

I value having a book delivered to me more than I value the $10.50 it cost me.  By definition, I become more “wealthy” as a result of this transaction.  As each transaction adds up, I become even MORE wealthy.  Bird food delivered to my door?  More wealthy.  Bakugans for the boy?  More wealthy.

And the genius is that Amazon becomes more wealthy too!  They value the $10.50 more than they value the capital it took to establish the infrastructure to facilitate the sale.  Same with FedEx and the imbedded shipping charges.  And the publisher who printed the book.  And the author who penned it.  None of them would have entered into the arrangement had they not felt so.

We ALL become more wealthy as a result.

And it struck me.  If we reject capitalism, that each man is out to obtain the best value for himself, then what we are saying is that we would only desire to read books written by ourselves.  To wear clothes woven and stitched by ourselves.  Eat food grown or raised by ourselves.  And live i houses built by ourselves.

That, or enjoyed at the coercion of others.

Are there losers in capitalism, even as it functions “properly”?  Yes, without a doubt.  But it is the unmistakable sting of failure that drives us to succeed.  It is the joyous sense of success that drives us to avoid failure.

And so it must be.  It is how we evolved from that first strike of lighting in the primordial mud.  A series of experiments where some failed and withered while others succeeded and thrived.  Evolution is, in a sense, capitalism.

To reject the free market is to reject truth.  And instead rely on “faith”.  Faith that all men, or enough of them, will act in such a manner that is contradictory to his nature.

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Posted in Liberty, Rocket Surgery, Stuff

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Kidney Transplant

Posted on December 21, 2011 | 10 comments

So, I’m reading a story about an illegal immigrant who is struggling to obtain a kidney transplant.  He has a donor; his brother.  But the system doesn’t allow illegal residents transplant care.  Lifetime dialysis?  Sure.  Transplant?  No.

Anyway, I’m sure I read this somewhere, but it occurred to me that of all the people in the kidney transplant process, the doctors, the hospitals, the nurses everybody, the only person who isn’t compensated for his time and effort is the guy that loses the kidney.

Isn’t that weird?  Maybe if we allowed people to sell their spare kidney we wouldn’t have so many people waiting for a kidney.

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Posted in Health Care, Life

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Free Market Fail

Posted on December 17, 2011 | Leave a comment

The market isn’t perfect.  It’s a system kinda predicated on failures.  As capital in the hands of the incompetent isn’t used to it’s potential, that capital will flow to it’s best use.

However, some of the failures are mind boggling.

ANDERSLOV, Sweden — Several blond residents of a southern Swedish town were left with green hair after an unusual reaction between the water supply and the shower system of a number of new homes.

Authorities began investigating when a number of inhabitants of Anderslov complained that their hair suddenly turned green, Swedish newspaper Skanskan reported.

They tested the water supply in several homes to see if there was a high level of copper — known to turn hair green — but recorded only normal levels of the metal.

However, when hot water was left in the houses’ water systems overnight, the amount of copper in it was found to increase to five or 10 times the normal amount.

Investigators concluded that the hot water must have peeled copper from the pipes and water heaters. The copper then was absorbed into the water, causing the shock hair color change when residents showered.

The problem was found to be worst in new homes, where pipes lacked coatings.

Now, we can get into the benefits of state mandated housing regulations or private managed regulating agencies.  Either way, the solution to the copper in the water problem can’t be this:

Residents were told wash their hair in cold water or live in an older house to avoid the problem.

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Posted in Economy, Government

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The Downside To Cheap Labor

Posted on December 16, 2011 | Leave a comment

For ever we’ve heard the anti-free market crown complain that corporations exploit the workers of the world by moving production to heap labor.  Right?  We exploit the villager that has experienced bone crushing poverty for generations by providing a job that allows them to own their own house.  The first of their family EVER.

All of this in the name of profits and corporate greed.

Well guess what happens when the market begins to correct and the worm turns:

One of the things that’s showing up in Christmas stockings this year: higher prices, courtesy of China.

After decades as America’s go-to destination for low-cost consumer goods, China is undergoing a profound shift. Rapid economic development and a smaller supply of young migrant workers are pushing up labor costs. Tack on rising raw-materials prices, driven largely by Chinese demand, and a strengthening currency, and China-made goods aren’t the bargains they used to be.

…

Last month’s prices for Chinese imports were up 3.9% from a year earlier, the Labor Department said Wednesday, matching October’s gain, the largest year-to-year monthly rise since 2008.

Wednesday’s report showed that prices were up sharply for many kinds of goods for which China is the dominant supplier.

China accounts for about 80% of U.S. shoe imports; imported-footwear prices in November were up 6.1% from a year earlier. It accounts for about 60% of furniture imports; imported-furniture prices also were up 6.1%. About 80% of U.S. luggage imports come from China; prices in the category that includes luggage and similar goods rose 8.3% in November.

Those higher costs are one reason that U.S consumer prices have risen this year, despite the weak economy.

For all the complaining that has gone on concerning off shoring, people have been silent regarding the prices.  Maybe now, as prices begin to rise, people will begin to understand the benefits.

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Posted in Economics, Politics: International

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Protectionism

Posted on December 14, 2011 | Leave a comment

This is what happens when we impose tariffs on imported goods.  While the intent is to promote domestic business, the result is a trade war that punishes both domestic consumers as well as domestic business.  Not only does the tariff artificially raise the cost of goods for no reason, but it also forces foreign nations to impose tariffs in return:

BEIJING — China will levy anti-dumping and anti-subsidy duties on certain US vehicle imports, the commerce ministry said Wednesday, a move likely to fuel tensions between the world’s two biggest economies.

The tariffs will be applied for two years to passenger cars and sports utility vehicles with engine capacities of 2.5 litres or more and will take effect Thursday, the ministry said in a statement.

The decision will affect vehicles produced by General Motors, Chrysler Group, BMW Manufacturing, Mercedes-Benz US International, American Honda Motor and Ford Motor.

Hopefully both sides will step away and increase free trade; tariff free.

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Posted in Economics, Politics: International

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Capitalists Discover Capitalism

Posted on November 28, 2011 | 3 comments

Friday I mocked the Liberals who dominate Broadway theater for their embracing market pricing for their tickets.  I was correctly mocked back in the comments for not calling out traditional conservative bastions for equal failure.

Well, critics all here is your reward.

Greedy corporate pig airlines discover capitalism:

Fliers can still choose between window and aisle seats on Delta Air Lines, but they’ll have to pay extra if those spots are near the front of the plane.

Economy passengers can now pay $9 or $29 for these prime seats, depending on the length of the flight. They were previously only available to frequent fliers in the airline’s Medallion program.

Other airlines such as US Airways, Sun Country and American Airlines already charge for window and aisle seats. The fee for premier seating is the latest in a string of surcharges by airlines. The fees have generated billions of dollars in extra revenue and have helped offset rising fuel costs.

I’ve long lamented the lack of markets in airline seating.  As airlines are continually being squeezed for revenues by the competition, they are looking to gain efficiencies wherever they can.  And part of that is scheduling flights as tightly as possible.  Often I find myself looking at a connecting flight with only 20-40 minutes to catch it.  I NEED to sit in the aisle and up front.  At other times I’ve scheduled my flight the day before and am in a position where I can sit in the back without a problem.

There has to be a better way than randomly assigning seats or even setting up an “e-bay’esque” type of event like Southwest does.  And for a long time I’ve told my poor suffering wife that “the market would set them free”.  Now, of course, I’ve always wanted them to set up a market where I could sell my seat position with the airline taking a cut.  But I guess this was inevitable.

In short, the market will allow people who need to be up front to be there while giving the folks who don’t need to be there the ability to well, not be.

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Posted in Economics, Transportation

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Broadway Discovers Capitalism

Posted on November 25, 2011 | 13 comments

I, of course, have no problem with this practice.  I do, however, find it deliciously ironic that the delicate Lefties that enjoy and embrace theater are so willing to allow such an evil concept as “free market pricing” to invade their world.  Then again perhaps I shouldn’t be surprised.  Conservatives are more charitable than Libbers.  And while the charity of choice for the cons is the church, the charity of choice for the libs is the arts.

Anyway, it appears that Broadway shows are not meant for the 99%.

The producers of Hugh Jackman’s song-and-dance-and-bump-and-grind show on Broadway were so bullish about his popularity that, even before the first performance last month, they raised prices from $155 to $175 on dozens of orchestra seats for the 10-week run. The bet is now paying off handsomely, so much so that the producers are increasing premium prices for the best seats in the house: what were $250 tickets are now going for $275, $325 or even $350, depending on the demand at particular performances.

I happen to think that this is a wildly fantastic idea.  I think that people who sell tennis shoes should charge what the market would bear.  I think the same thing about pumpkins and pencils as well.  That Broadway shows be exempt is silly to me.

And roof that this works?

“Have I ever paid anything close to $600 for a pair of tickets? No,” John Joyce of Rockville Centre, N.Y., volunteered on Monday after mulling a range of prices at the Broadhurst Theater box office. “But my wife wants to see Hugh. It’s the holidays and it’s a surprise for her. So I think it’s worth it.”

So I think it’s worth it.

But doesn’t this type of free market based capitalism negatively impact the theater?

…a supply-and-demand strategy that is a primary reason why Broadway has weathered the economic downturn unusually well.

To the contrary.  Because of this strategy, the industry is booming and allowing all kinds of people to enjoy continued economic success.

And perhaps the most inspiring aspect to the story is how these Lefties have intuited and come to an understanding of what this all about.  See, in the past, when these shows would sell tickets at dictated prices, not market based prices, tickets would be scooped up by companies and resold at their proper level.  But this only benefited the ticket resellers and the consumer; not the producers of the shows, the folks who performed and invested money.  This now is taken care of:

The producers of Mr. Jackman’s show said they turned to dynamic pricing to help ensure that their investors and creative team — not ticket resellers — would be the ones profiting from high-cost tickets.

“People are prepared to pay a lot more than we’re charging, but nobody in the theater industry would have benefited,” said Robert E. Wankel, president of the Shubert Organization, a producer of Mr. Jackman’s show and the Broadway landlord for his theater. (It is Broadway theater owners who take the lead in setting ticket prices, with input from producers.) “By doing it through dynamic pricing, at least the people who do the work and took the risk are getting some benefits.”

See?  They understand.  They understand that the people who work and risk ought be rewarded.  This is very consistent with what we believe should take place in other markets as well.

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Posted in Economics, Liberty

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Dear 99% – With Love, The 1%

Posted on October 25, 2011 | Leave a comment

Here’s an interesting illustration for the 99% camping out in tent cities all across our nation:

Reed Hastings was soaking in a hot tub with a friend last month when he shared a secret: his company, Netflix, was about to announce a plan to divide its movie rental service into two — one offering streaming movies over the Internet, the other offering old-fashioned DVDs in the mail.

“That is awful,” the friend, who was also a Netflix subscriber, told him under a starry sky in the Bay Area, according to Mr. Hastings. “I don’t want to deal with two accounts.”

Mr. Hastings ignored the warning, believing that chief executives should generally discount what their friends say.

He has since regretted it. Subscribers revolted and many dropped the service. The plan further tarnished a once widely respected Internet service that had already been wounded by an unpopular price increase in the summer. Mr. Hastings was forced to reverse the planned split — but not the price increase — three weeks later and apologized.

On Monday, the company revealed the damage that had been done. It told investors that it ended the third quarter of the year with 800,000 fewer subscribers in the United States than in the previous quarter, its first decline in years. The stock plummeted more than 25 percent in after-hours trading

The market works.

Even the 99% can impact the 1%.

Learn and implement.

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Posted in Economics

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Medical Care In The United States

Posted on October 11, 2011 | Leave a comment

More proof that we have the best medical care delivery system in the entire history of the world:

Drugstore and supermarket pharmacies across the country have launched a marketing blitz to attract flu shot customers, touting the convenience of stopping at a local drugstore and often offering drop-in vaccinations anytime the pharmacy is open — sometimes even 24 hours a day.

“If you decided at 4 o’clock in the morning you wanted to go out and had nothing better to do than get a flu shot, you could walk right in and you could get a flu shot,” says Scott Gershman, pharmacy manager at a Walgreens drugstore in Springfield, Va.

Shelley Troff and her 13-year-old son dropped by Gershman’s pharmacy one afternoon in September to get their annual shots. Troff says she didn’t even consider going to her doctor’s office. “To be frankly honest, Walgreens is easier,” she explains. “Since this is one mile from my house and the clinic is 20 minutes from my house, this is where I come.”

Pharmacies usually charge between $25 and $32, while a shot at the doctor’s office generally costs at least $48

Really super sucks to be an American.

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Posted in Health Care

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There Is Hope

Posted on October 2, 2011 | Leave a comment

And who would have thought it would come from, of all places, France?

I mock France in all of its caricatures.  The social state, the welfare, the lifestyle and the arrogance.  I do.  I admit it, in fact, I embrace it.  But I have to admit, I took hope in France tonight.

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Posted in Economics, Government, Liberty

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