Free Marketers Explain: How is "I can't find anyone to do X job!" solved?

[DucatiMonster696]

Perhaps you should listen to what Free Market adherents say?

Perhaps you should read and educate yourself on what the term "Free Market" implies and stands for rather then spouting off what you believe it means in relation to your own personal bias.

 

[gingermeggs]

Duh, just like demand side econ would fall apart if there is no supply.

This is such a simple concept you would think the Democrats would use it to eviscerate Republicans.

That's where Germany steps into the picture
And where the USA's deficit stems from....

 

[sandorski]

Perhaps you should read and educate yourself on what the term "Free Market" implies and stands for rather then spouting off what you believe it means in relation to your own personal bias.

Srsly dude, what it means and how it is used are 2 different things. It's another similarity it has with Communism.

 

[DucatiMonster696]

Srsly dude, what it means and how it is used are 2 different things. It's another similarity it has with Communism.

You can't be serious. The economic growth seen in the blossoming Chinese and Indian economies are sufficient evidence to totally disprove your point.

In fact India (more so then the obvious case made by China) is a perfect example of the type of national economic growth and uplifting of the standard of living that occurs when socialist economic polices are abandoned and free market reforms are eventually instituted even on a limited scale to allow a price coordinated market to take root and grow versus a state coordinated and regulated economy.

http://en.wikipedia.org/wiki/India#Economy

According to the International Monetary Fund, as of 2011, the Indian economy is nominally worth US$1.676 trillion; it is the eleventh-largest economy by market exchange rates, and is, at US$4.457 trillion, the third-largest by purchasing power parity, or PPP.[194] With its average annual GDP growth rate of 5.8% over the past two decades, and reaching 6.1% during 2011-12,[195] India is one of the world's fastest-growing economies.[196] However, the country ranks 140th in the world in nominal GDP per capita and 129th in GDP per capita at PPP.[194] Until 1991, all Indian governments followed protectionist policies that were influenced by socialist economics. Widespread state intervention and regulation largely walled the economy off from the outside world. An acute balance of payments crisis in 1991 forced the nation to liberalise its economy;[197] since then it has slowly moved towards a free-market system[198][199] by emphasizing both foreign trade and direct investment inflows.[200] India's recent economic model is largely capitalist.[199] India has been a member of WTO since 1 January 1995.[201]

However the only real hurdle and potential stumbling block for India's economy today is that they have yet to take the full plunge with their free market reforms and have kept some old policies which have long since been identified to be barriers to growth unlike China who has been more liberal with their reforms and thus has become the defacto economic juggernaut in Asia that has eclipsed the average 7.6% growth rate exhibited by India after its 1991 free market reforms.

Factbox: India's stalled economic reforms

http://news.yahoo.com/factbox-indias-stalled-economic-reforms-211950006--business.html

(Reuters) - Fears of a rating downgrade and the possible fallout from a euro zone meltdown have
forced a sense of urgency on India's beleaguered government, re-igniting hopes for stalled
economic reforms.

Both Fitch and Standard & Poor's (S&P) have cut their credit outlook for India to negative from
stable, citing its slowing economy, policy inaction and worsening fiscal situation. S&P has also
warned of a sovereign credit rating downgrade if the situation remained unchanged.
Following are some of the big ticket reforms that India has been struggling to implement for
want of political consensus.

FOREIGN INVESTMENT IN SUPERMARKETS

After years of deliberation, Prime Minister Manmohan Singh finally proposed late last year to
open up India's $450 billion supermarket sector for foreign investment. But he had to backtrack
a few days later as a political backlash over the issue put his government in danger.
Opening up the sector is expected to modernize an archaic supply chain, which will help resolve
the problem of high food inflation. But critics say it would wipe out indigenous mom-and-pop
stores, causing massive unemployment and social unrest.

Although Singh has long been promising to revisit the decision, a worsening economic situation
and changed political equations may finally allow him to act on that promise after the July 19
presidential election.

Government officials say opening up the retail sector would help boost capital inflows, which will
help strengthen the rupee and bolster investor confidence in the economy.
The government is hoping the socialist Samajwadi Party (SP) will help implement this
controversial reform, just as the latter bailed it out on the presidential election.
Late last year, the SP strongly opposed the decision to allow 51 percent foreign direct investment
in multi-brand retail, but its leaders now say they would not let the government fall over the
issue.


FUEL SUBSIDY REFORM

Every year, the Indian government pays huge compensation to state-run oil companies for
selling diesel, kerosene and cooking gas below market price. This acts as a drag on public
finances and ends up widening the fiscal gap.

But the subsidies are intended to benefit the poor and any tinkering with them has the potential
of raising a political storm and endangering the government.

New Delhi had to pay about $12 billion to oil firms in fiscal 2011/12 (April-March) to cover their
losses, which widened its fiscal gap to 5.8 percent of GDP from the planned 4.6 percent. India
had to raise an extra $17 billion from market borrowings to meet the overall deficit.
Economists say a lower deficit and lower government borrowing are preconditions for reviving
private investment that has been anaemic since the 2008 financial crisis.
Fears of a political backlash have not allowed the government to hike prices of subsidized fuels
since mid-2011. But mounting concerns over public finances are expected to force the
government to raise at least diesel prices after July 19.

FDI IN CIVIL AVIATION

The proposal to allow foreign airlines buy stakes in local carriers is expected to help address
their financial woes.

Indian airlines were laden with $20 billion in debt and probably lost $2.5 billion in the fiscal year
that ended in March, according to Centre for Asia Pacific Aviation, a consultancy.
Although the civil aviation industry has been lobbying hard for permitting foreign investment,
opposition by the Trinamool Congress, a key government ally, has forced the government to put
it on the backburner.

FDI IN INSURANCE AND PENSION SECTORS

India has plans to permit 26 percent FDI in the pension sector and raise the investment limit in
the insurance sector to 49 percent from 26 percent. However, political opposition has forced the
government to defer the proposals as enacting them requires legislative approval.
The ruling coalition does not enjoy the required majority in the upper house of parliament to
pass the proposals.

GOODS AND SERVICES TAX

The proposed reform intends to transform India into a single fiscal union, helping cut business
costs and boost government revenue. A nationwide GST is estimated to add between 0.9-1.7
percentage points to India's GDP.6/27/12 Factbox: India's stalled economic reforms - Yahoo! News
news.yahoo.com/factbox-indias-stalled-economic-reforms-211950006--business.html 3/5
However the proposal, first mooted in 2007, is facing opposition from state governments, which
fear revenue losses once the GST comes into effect.

Enacting GST requires an amendment to the constitution, which needs approval by two-thirds of
federal lawmakers and needs to be passed by at least half of 28 state legislatures.
The ruling Congress Party-led coalition needs the opposition Bharatiya Janata Party's support
for these numbers.

(Reporting by Rajesh Kumar Singh; Editing by Raju Gopalakrishnan)