The Flaws of the Free Market

[thriller222]

The free market theory is one of the most absurd theories out there, yet many people continue to advocate it.

First off, the free market is one of the most flawed economic theories, even more flawed than a planned economy. The idea that no regulations at all is a good thing has so many holes that I will list below.

.The minimum wage would not exist, and all wealth would be concentrated into a few hands, leaving MASSIVE wealth gaps that would never be fixed, because there would be no one there to fix them.

.Food would be very dangerous to eat, because there are no regulations saying what would be safe to put out on the market, and what wouldn't. The recent turkey recall is a good example, because right before it happened, food regulations were loosened.

.The environment would be filthy and unsafe because there would be no air, water, land or building standards.

.Roads would be expensive to drive on because corporations would own them and jack up toll prices just to increase profit.

.Electricity would be unregulated, meaning that there could be massive power outages because one company thinks that they aren't getting enough profit.


This list could go on for miles, literally, but I post this video below just to show you what my real point is.



Watch on YouTube


Btw, the title is satire, I don't think socialism is bad.

[UnschoolShqiponjë]

The people would control the free market.

Quote:The minimum wage would not exist

Why would one work for someone who pays them low amounts of money? Not to mention another company can come along and up their wages by a dollar and workers of the company who pays less would be able to work for the new company.

Quote:leaving MASSIVE wealth gaps that would never be fixed

This is very general... as it stands now we already have massive wealth gaps. Yet, there will probably always be huge wealth gaps... but you determine a societies market by how well those with the lowest amount of money are living. Currently... societies with markets that have more freedom have poor people who live in better living conditions.

Quote:Food would be very dangerous to eat, because there are no regulations saying what would be safe to put out on the market, and what wouldn't.

In a free market... food regulating companies would spring up and they would test the foods of food companies. Those who are trust worthy will stay in business. Not to mention companies that sell bad food would be blacklisted.

Quote:The environment would be filthy and unsafe because there would be no air, water, land or building standards.

Again, the people would determine this. If it becomes such an issue people will avoid buying from companies that aren't environmentally conscious. Thus to stay in business a company must make sure it doesn't ruin the environment.

Quote:.Roads would be expensive to drive on because corporations would own them and jack up toll prices just to increase profit.

Actually the roads issue is a good one because even if the people wanted to avoid taking certain roads... they might have to. Yet, I foresee that people would be scrambling to invent other forms of transportation that wouldn't need the use of roads. How rich that person would become.

Quote:Electricity would be unregulated, meaning that there could be massive power outages because one company thinks that they aren't getting enough profit.

Then people will leave that company and pay another for its service. Mindlessly turning off power is a bad business strategy.

[Absnt]

I have to agree. I'm not a socialist per say, but having a 100% free-market would be shit.

[Blobthe15]

inb4 Weswammy

[UnschoolShqiponjë]

Blobthe15 Wrote:inb4 Weswammy

To be honest I can't wait till I see his response... I always love em.

[Absnt]

IIRC, weswammy isn't for a 100% free market either...

[thriller222]

Another pet peeve of mine is when free market advocates say the market will "fix" itself.

First off, this is an assumption, not a fact. It assumes that people are always going to be aware enough to notice the problems of the system. That is not always the case. This recession we are in now is a good example of this.

Another thing free market advocates promote is the idea that if something bad happens due to the mistakes of the business, then the people will make sure the mistake never happens again. If you don't understand what I'm saying, I'll give a scenario.

In a free market system, an 80 story building is constructed with a week foundation. Because there are no regulations that make sure the building is safe and strong, the building may not be safe to use. But the building experiences an earth quake a week later, causing it to collapse and kill thousands of people instantly. Because there are no regulations, thousands of lives have been lost. If there were regulations, then the building could have been built to standards that protect it from natural disasters, and the death toll could have been reduced to none.

However advocates of the free market say that the architecture firm did the right thing, and that now no one will use that firm.

The point I'm tryng to make is that regulations help prevent accidents, and yes accidents are always bound to happen, but less accidents will happen within a regulated market.

[UnschoolShqiponjë]

You give regulated markets this odd infallible status. Most things you mention happen in a regulated market. The recession happened in a regulated market... so it was not evidence that the free market fails.

[Thought Criminal]

I find the easiest way to debunk the free market is greed. You can't base your entire economy on greed without any regulation. You will only end up with monopolies and giant mega corporations that hold more power than the government fucking everybody else over through dirty business practices.
Don't get me wrong, It sounds good in practice but it can never truly work for any extended period of time. It's just like communism, a pipe dream.
The United States tries to take the best of both worlds, even though corruption at every level of government has compromised it's efforts.

[aaaaaaasd]

Wes get in here

[thriller222]

Thought Criminal Wrote:I find the easiest way to debunk the free market is greed. You can't base your entire economy on greed without any regulation. You will only end up with monopolies and giant mega corporations that hold more power than the government fucking everybody else over through dirty business practices.
Don't get me wrong, It sounds good in practice but it can never truly work for any extended period of time. It's just like communism, a pipe dream.
The United States tries to take the best of both worlds, even though corruption at every level of government has compromised it's efforts.

This

I'm an advocate of the mixed market, so that the private sector exists, but there is government regulation. And screw free trade, we need regulation on trade so that all the businesses here don't move to China or Mexico.

[UnschoolShqiponjë]

Thought Criminal Wrote:I find the easiest way to debunk the free market is greed. You can't base your entire economy on greed without any regulation. You will only end up with monopolies and giant mega corporations that hold more power than the government fucking everybody else over through dirty business practices.
Don't get me wrong, It sounds good in practice but it can never truly work for any extended period of time. It's just like communism, a pipe dream.
The United States tries to take the best of both worlds, even though corruption at every level of government has compromised it's efforts.

Greed is actually an argument FOR the free market. Companies NEED the support of their customers and employees. Companies that try to abuse or get over either are going to go out of business.

I'll give you the flaw of a free market. Consumer apathy. Yet, every system has flaws.

[Thought Criminal]

I realize that is one of arguments for it. That is what made me come to that conclusion.

[thriller222]

Yes, the biggest flaw in a totally unregulated market would be the fact that it would fall apart within minutes.

The reason I say this is because without any body regulating the market, there would be no standards at all, no organization within the system, and nothing that says what a corporate body can or cannot do.

Every type of system needs to be regulated, we see this everywhere, so why wouldn't that apply to the economic system. The government needs to be regulated so that there is not a concentration of power. Could any of you imagine what the world would be like if there were no such thing as a constitution? It would be pretty bad, like living in the dark ages bad. Same thing with the market, if the market goes unregulated then too much power goes into very few hands and the system falls apart and then its no longer a free market.

[UnschoolShqiponjë]

I find it sad that people feel like they NEED a group of rich goons to run everything for them.

[thriller222]

UnschoolShqiponjë Wrote:I find it sad that people feel like they NEED a group of rich goons to run everything for them.

I find it sad that rich goons running everything is what the free market would end up being.

[UnschoolShqiponjë]

thriller222 Wrote:

UnschoolShqiponjë Wrote:I find it sad that people feel like they NEED a group of rich goons to run everything for them.

I find it sad that rich goons running everything is what the free market would end up being.

It is already like that so you won't have to worry too much.

[thriller222]

UnschoolShqiponjë Wrote:

thriller222 Wrote:

UnschoolShqiponjë Wrote:I find it sad that people feel like they NEED a group of rich goons to run everything for them.

I find it sad that rich goons running everything is what the free market would end up being.

It is already like that so you won't have to worry too much.

Its already like that because of deregulation of the market.

[UnschoolShqiponjë]

lol

[Thought Criminal]

Well you either have rich corrupt CEO's running shit or rich corrupt politicians running shit. I choose the latter because they at least have some measure of accountability.

[thriller222]

Thought Criminal Wrote:Well you either have rich corrupt CEO's running shit or rich corrupt politicians running shit. I choose the latter because they at least have some measure of accountability.

I believe politicians should be paid very little. Money is the biggest corrupter in the system, that's why I am for income caps, because it prevents true corruption. Corporate scum fucks buying out politicians with millions of dollars is the reason we have so many corrupt shit heads in office right now. When money is not the big issue, then running the country well will be the true aim of politicians. I really do believe that redistributed wealth prevents corruption and makes for a better quality of life.

[Thought Criminal]

I think they should be payed enough to live luxuriously. Do I think it should work that way? No. Buy if you pay them next to nothing they will be way more likely to take bribes. If they make enough money to sustain their lifestyle through a salary then they wold be less likely to accept bribes and gifts in return for messing shit up.

[thriller222]

Not enough to live luxuriously, enough to live a life. If money was not the issue then only people who have credibility would be in office. People who actually care about the country.

[thriller222]

So yeah in my opinion the free market will never work. I love the idea, just like I love the idea of true communism, but of course we now know what happens when humans try to achieve communism. The idea of the free market isn't any different, its just another thing that contains the seeds of quick self destruction.

[Phrozen_Soul]

thriller222 Wrote:So yeah in my opinion the free market will never work. I love the idea, just like I love the idea of true communism, but of course we now know what happens when humans try to achieve communism. The idea of the free market isn't any different, its just another thing that contains the seeds of quick self destruction.

you know what true Communism is?

[Thought Criminal]

True communism can never exist. I believe a mixed market is best but we need more rules in place to regulate government and the power of corporations. Our government is corrupt at every level. There is no denying that. I believe if the we made enough changes to our constitution we could be rid of such issues, but it would have to be done by trustworthy people. Something those in power are not.

[Phrozen_Soul]

Thought Criminal Wrote:True communism can never exist. I believe a mixed market is best but we need more rules in place to regulate government and the power of corporations. Our government is corrupt at every level. There is no denying that. I believe if the we made enough changes to our constitution we could be rid of such issues, but it would have to be done by trustworthy people. Something our government is not.

Wasn't Communism supposed to be an economic system, where it seemed even better on paper?

[Thought Criminal]

What are you talking about? Do you not know what communism is?

[thriller222]

Communism and the free market are similar in the way that they will never work the way they are intended. That's what I meant.

[Thought Criminal]

I understand what you meant I was talking to Phrozen. The way he is talking it seems like he doesn't know what communism is.