Laissez-faire capitalism leads to depression, and revolutions, because an unregulated market turns into feudalism.
Being "pro-free market" is just a fancy way of saying "Let the corporations run everything." President Hoover was kind of like that.
3chordcharlie
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In some ways it is. It's also a great business for Americans bringing us cheaper consumer goods.
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Zendari thinks that things were great back in the early 1900's when we let the free market reign supreme. He probably has never read of the robber baron era and that it was Roosevelts new deal that created the great middle class of which I assume he is a member. Its a shame that those who are ignorant of history are doomed to repeat it.
3chordcharlie
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It brings you cheaper goods by abusing it's employees, forcing suppliers into a money-losing contracts (by finding that special place where the supplier would lose even more money by not continuing to supply), and myriad other abuses.
Walmart's inventory and distribution systems are brilliant, and certainly contribute to their overall efficiency; they also help secure the market power that lets Walmart get away with murder in other aspects of its business.
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The goal of WalMart and every other company is to get itself a monoply position where it can make the most money. Anyone who thinks otherwise doesn't understand how business works. If anyone out there thinks WalMart keeps a price on an item low to benefit the consumer they are also so naive as to be childish. Walmart prices items to make the most profit for Walmart. If any CEO did otherwise they would be fired in a second.
The bulk of jobs lots in manufacturing is to higher productivy, not cheaper offshore labor. Ever year the US makes more product, but does so with fewer people.
Originally posted by: techs
Are not.
The new deal was a serios of jobs programs to help fight unemployment(>20%) and depression which was caused by the smoot harley act(proctection of markets). Go back to history books.
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Originally posted by: charrison
Originally posted by: techs
Are not.
The new deal was a serios of jobs programs to help fight unemployment(>20%) and depression which was caused by the smoot harley act(proctection of markets). Go back to history books.
The depression was a result of overcapacity in production due to Europes recovery from WW1 and the failure of the un-regulated financial markets which resulted in a loss of faith in investment and the low wages earned by workers in proportion to the wealth they created.
The New Deal attempted to stimulate the economy by putting money into the hands of people who would spend it driving up demand. To ensure long term financial health the New Deal strengthened the cause of workers to receive a higher (some would say more fair) proportion of the wealth they created.
Dissipate
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Originally posted by: techs
Originally posted by: charrison
Originally posted by: techs
Are not.
The new deal was a serios of jobs programs to help fight unemployment(>20%) and depression which was caused by the smoot harley act(proctection of markets). Go back to history books.
The depression was a result of overcapacity in production due to Europes recovery from WW1 and the failure of the un-regulated financial markets which resulted in a loss of faith in investment and the low wages earned by workers in proportion to the wealth they created.
The New Deal attempted to stimulate the economy by putting money into the hands of people who would spend it driving up demand. To ensure long term financial health the New Deal strengthened the cause of workers to receive a higher (some would say more fair) proportion of the wealth they created.
Nothing but myths.
The depression was started by the Federal Reserve's flagrant expansion of credit during the Roaring 20's, not unregulated markets.
Yes, the 'New Deal' attempted to stimulate the economy but it did no such thing. The New Deal was driven by Keynesian economics which has been completely debunked for decades now.
3chordcharlie
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I wasn't aware that the federal reserve supported buying stocks on 10% margins. I'm pretty sure that was actually a service provided by the free market.
3chordcharlie
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A large portion of the stock market at the time was purchased with borrowed, imaginary money, created by private banks operating on a reserve system. Contrary to your precious metals currency position (which you haven't mentioned in a while), any deposit institution will eventually switch to a fractional reserve system, unless specifically prohibited from doing so, because they can lend and make more money that way.
When assets like corporate stocks, with a 'real' value of close to zero (basically, the 'secure' value of a stock is the actual assets of a company, minus secured debt) are held with borrowed money, which must itself be repaid in dollars, not stock, it doesn't take a very large drop in values to force widespread selling, and a precipitous drop in market values. This lead to many unecessary corporate bankruptcies, and all sorts of other problems, all without the need for government intervention.
Federal Reserve expansion of credit was a bad idea; but private banks selling stocks on tight margins was quite possibly worse.
I'm going to agree with that one. Very few people make federal minimum wage nowadays. How many states even use the federal minimum wage anyway?
A dollar doesn't buy the same amount of goods everywhere so it's kind of stupid to have the same minimum wage everywhere. Heck, purchasing power can vary quite a bit within the same state. A minimum wage of $7.64 might seem perfectly fine in Seattle but it's extremely high in more rural areas like Wenatchee or even Spokane.
What I also find funny are the people complaining about China having an unfair advantage in the labor market while advocating a raise in the federal minimum wage. That's one of the reasons they have an advantage in the labor area.
Also, it was the Federal Reserve that spurred the Great Depression. Obviously buying on margin didn't help but it wasn't the main cause. All of the bank closings were due to the fact that banks weren't allowed to open branches in other states. Canada had just as bad of a depression yet had zero bank failures due to them allowing national bank branches.
I suggest some of you guys read FDR's Folly by Jim Powell. It's a good read on the economics of the Depression.
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