Tag Archives: Free Market

How to Regulate the Free Market

Make it free’er.

Way.

Too many times we see a “problem” or a wrinkle in how markets work or are working and we think:

This is a problem

And we immediately think that the only solution is to implement process that will “prevent this from ever happening again.

And that’s just wrong thinking.

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What Happens When Markets Are More Free?

More good things happen.  And they happen all over the world.

See, the mistake that the Left makes regarding job creation is that it’s a zero sum game.

I.E. Liberals think that if you add a job in China you are subtracting a job in America.

In fact, the opposite is true.

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One Minus One Does Not Equal Zero

Long long ago mothers used to tell their kids stories that would frighten them into behaving.  Monsters roamed the forests.  Trolls loomed under stone bridges.  Mostly it worked.

Then us kids invented the internet and we googled monsters, trolls and mothers.

Turns out it was all a lie.  A lie invented to trick us into acting a certain way.

Mothers may have learned that we don’t react in the same way.  Liberals haven’t.

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More Minimum Wage

The intentions of those that preach the minimum wage are noble.  Who isn’t interested in helping those folks who are the poorest among us?  What person that we would care to associate with could not help but have feelings of sympathy for people who struggle to make enough money to eat, to cloth themselves or pay rent?

Who?

No one.  Not one single person I know would brush those feelings away.

However, with that said, the singing of the platitudes of the minimum wage has to end when the effectiveness of those laws are considered.

And the result?  The verdict?

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What Did They THINK Was Going to Happen?

We are seeing–living–the impact of government intervention in markets.  Most notably, the housing market.

Not only has the housing market largely been responsible for the current economic  conditions we’re seeing, but it’s also responsible, in large part, for the slow and anemic recovery.

The sad part?

It didn’t have to be this way.  And THAT, gentle reader, is a text book lesson in markets and external impacts.

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New Government Policy


Quick, no googlly-ogglly-Google.

What nation said this:

X-Nation announced on Monday it would lay off “at least” half a million state workers over the next six months and simultaneously allow more jobs to be created in the private sector as the socialist economy struggles to get back on its feet.

“Our state cannot and should not continue maintaining companies, productive entities and services with inflated payrolls and losses that damage our economy and result counterproductive, create bad habits and distort workers’ conduct,”

…the government “agreed to broaden the exercise of self employment and its use as another alternative for the employment of those excess workers.”

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The Market [Literally] Shall Restore You

Flu shots too hard to get?

Doctor’s office run out?

Making an appointment is too hard to manage?

Actually taking time off to go to the doctor’s office inconvienient?

Check this out:

Not only can I buy groceries at this store, I can buy beer and wine.  I can buy local farm fresh produce from local growers.  I can fill a prescription.  Not only can I fill a prescription, but I can enroll in a program that will get me many medications at $9.99 for a THREE MONTH supply.  Not only that, but I can now walk up, without an appointment, bill my insurance or pay directly and get a flu shot.

At the grocery store.

Not one single vote or law was required for this advancement to occur.  Only that reasonable people, willing to trade time and property be allowed to meet in a market and trade.

Government Regulation and Licensing

I recently posted about my experience with plumbers and gutter guys.  I discovered that plumbers were horrible at communicating, showing up on time, being proactive and delivering.  Gutter guys, on the other hand, not only call ahead to confirm appointments, show up 5-10 minutes early and deliver quotes on time.  They also include the added benefit of bringing the beer.

Hard to beat.

Both professions are being hammered by the recession.  And you can make the argument that the gutter guy is hit harder; his is a discretionary expense.  Both need the work and as groups, should be equally motivated.  They weren’t.

My conclusion?

One is a licensed and regulated industry.  The other isn’t.

But isn’t government regulation necessary in certain industries?

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The Power of Innovation

135 years ago.

The first telephone conversation:

“Mr. Watson, come here, I want you.” With these words, spoken by inventor Alexander Graham Bell into his experimental telephone on March 10, 1876, an industry was born. For down the hall, Bell’s assistant, Thomas Watson, distinctly heard Bell utter the first spoken sentence ever transmitted via electricity. That achievement was the culmination of an invention process Bell had begun at least four years earlier.

By 1892 AT&T completed a network between New York and Chicago.  The downside?

The circuit could handle only one call at a time. The price was $9 for the first five minutes.

How far have we come?

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Knee Jerk Reaction Coming in 5-4-3….

A wedding, time for happiness and excitement.  Right?  Depends I guess, on who you do business with.

So, turns out that we have an incompetent or unethical businesswoman here in Raleigh:

Raleigh, N.C. — The owner of a north Raleigh bridal store says dozens of brides might never see the wedding gowns and bridesmaid dresses for which they have already paid.

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