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Old May 8th, 2012, 09:08 AM   #19
Martinghoul
 
 
Join Date: Jan 2009
Location: London
Posts: 6,310
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Quote from achilles28:
Would you kindly enlighten us as to what the deficiencies in capitalism are, and cite some examples?
Two main categories:
1) Provision of public goods, aka issues that have to do with negative externalities
2) Monopoly issues
Quote:
Quote from achilles28:
Sure, lets talk about it. Coles notes?
I dig up a few. Pls bear w/me.
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Old May 8th, 2012, 09:21 AM   #20
achilles28
 
 
Join Date: Apr 2005
Posts: 8,072
Quote:
Quote from Martinghoul:

Two main categories:
1) Provision of public goods, aka issues that have to do with negative externalities
What do you mean by negative externalities? I don't work for a multi-billion dollar hedge fund, my friend. Can you dumb it down for me, a bit?

If you mean, provision of public services (funded via taxes), we seem to do okay now? And then (post-1930's)?

Reasonable tax rates are certainly compatible with a capitalist system? The Founders funded via tariffs and excise?


Quote:
Quote from Martinghoul:


2) Monopoly issues
These aren't deal-breakers, imo. Without excessive regulation (and regulators to buy off), what's wrong with monopolies if they provide a good or service well below that of other free market competitors? That's a boon to the general economy. Not a blight, ya?



Quote:
Quote from Martinghoul:

I dig up a few. Pls bear w/me.
Sure thing. No rush.
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Old May 8th, 2012, 09:25 AM   #21
MKTrader
 
 
Join Date: Dec 2005
Posts: 2,239
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Quote from Martinghoul:

That is not the case and there's an abundance of research to demonstrate that. I can cite you some, if you like.
That's OK. I've already read the comic book version of US history where the interventionist/regulators save the day. I would go watch Avengers if I were into that sort of thing.

The Great Depression was interventionist all the way (starting with Hoover). The 1920-1921 depression started out really bad, but the young Fed didn't get involved. Interest rates remained around 7%, and the gov't drastically slashed its spending. According to Bennie and the Feds, this should've been a disaster, but it turned out infinitely better than what happend 10 years later.

The idea that we had a totally unfettered economy and a pure gold standard is a myth, however. There's always been some gov't interference, especially since Hamilton. There were bubbles and rocky recoveries thanks to things like the National Bank, Greenbacks, state issuance of bank notes not backed by PMs, etc. So I'm not saying everything was OK before the Fed. Of course, things will never be perfect, but pure market forces handle bubbles and imbalances more efficiently than central planners any day.
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Old May 8th, 2012, 09:28 AM   #22
Scataphagos
 
 
Join Date: Apr 2009
Location: Colorado
Posts: 10,569
Quote:
Quote from MKTrader:

"... There were bubbles and rocky recoveries thanks to things like the National Bank, Greenbacks, state issuance of bank notes not backed by PMs, etc. So I'm not saying everything was OK before the Fed. Of course, things will never be perfect, but pure market forces handle bubbles and imbalances more efficiently than central planners any day.
Question... has America EVER had inflation/currency debasement EXCEPT when the government/fed/somebody was printing money?
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Old May 8th, 2012, 09:30 AM   #23
Martinghoul
 
 
Join Date: Jan 2009
Location: London
Posts: 6,310
I am very happy to have a discussion like this, folks (MK & achilles)...

I am in the middle of something at the moment, but I will happily respond later on today.
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Old May 8th, 2012, 09:38 AM   #24
achilles28
 
 
Join Date: Apr 2005
Posts: 8,072
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Quote from Martinghoul:

, but neither does fully unfettered, unregulated capitalism.
Who says? Any examples?
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