Norman van der Sluys on sat 23 dec 00
This thread is at risk of becoming seriously off-topic, but I feel compelled to
make a response to the ideas put forth in the website below.
It is true that deregulating only part of a market is a serious error that
inevitably leads to severe economic disruption. That said, Society has clearly
made some choices that preclude establishing a pure free market. Some of these
include recognizing that not all value can be quantified in terms of money. These
include the value of the individual, the environment, and the ethical health of the
community. You might also want to add the value of handmade objects in the machine
age and the worth of "pure" art. (There, sort of on topic!)
The idea of a regulated economy did not come from out of the blue! Historical
experience showed the necessity of protecting the people from the greed of the
economically powerful. If you weren't asleep, you might recall the turn-of-
the-century abuses by the railroads that nearly destroyed agriculture. Or the
abuses of employers during the first half of the last century. Or the abuses of
traders that resulted in the Crash of '29. The truth is that an unregulated economy
results in periodic violent shifts in prices, and these fluctuations are much
harder on those with little money than those with full pockets. The poor may not
be able to "hang on" until the market adjusts itself.
Many economists like to describe free-market economics as "democracy in terms of
dollars (or yen, marks, etc.") They need to refresh their knowledge of Greek. Demos
means "people", thus democracy is rule of the people. What they are talking about
is the rule of money. This supposes that greed is the most powerful driving force
in society and suggests that we just succomb to it, and forget about breathing
clean air and nurturing the talents of all the people (the true source of all
economic wealth.)
Here in Michigan, we are going through a season of wildly fluctuating gasoline
prices. In one local community the cost of gasoline was often nearly 20% higher
than in neighboring towns. A newspaper reporter did a little investigating to find
why this was so. There was no reason dictated by supply for these high prices. The
conclusion was that the high prices were charged because people would pay it. When
this was published in the paper the price of gasoline dropped from $1.80 to $1.32
within hours! Deregulation may be apropriate for caviar. It is not for goods and
services essential to the well-being of the people.
Mert & Holly Kilpatrick wrote:
> A different viewpoint on the California energy situation - long but very
> interesting if you have the patience to get through it.
> http://www.mises.org/fullstory.asp?control=575
>
> Holly
>
> ______________________________________________________________________________
>
--
Norman van der Sluys
by the shore of Lake Michigan, where it has snowed for 20 days, and winter is only
in its 3rd day!
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