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Thread: Capitalism is incompatible with free markets.

  1. #1

    Default Capitalism is incompatible with free markets.

    A lot of people may think that free markets can only exist under capitalism. Or that capitalism and the free markets are the same.

    They are not.

    Capitalism is a method of ownership. The free market is a method of exchange.

    Capitalism is just as destructive to the free market as socialism.

    http://c4ss.org/wp-content/uploads/2...capitalism.pdf
    ''The tattoo has a profound meaning: the superficiality of modern man’s existence.'' - Theodore Dalrymple

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    Politics.ie Member sandar's Avatar
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    you are getting very close to amjor truth with that.
    But capitalism is about creating the resources for the exchange to happen, its called capitalism because it encourages growth in the means of productionn capital.
    Pre-capitalist socities were all about owenrship, and the powre of land, capitalism as envisioned by adam smith aimed to end that power.
    it hasnt achieved that aim as yet because the land owners have missapropriated capitalism for their own ends.
    "Sometimes the best thing a government can do is simply get out of the way"-Vince Cable

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    Both because most people don’t like working in hierarchical work environments and because flatter, more nimble organizations would be much more viable than large, clunky ones without government support for big businesses, most people in a freed market would work as independent contractors or in partnerships or cooperatives. There would be far fewer large businesses, those that still existed likely wouldn’t be as large as today’s corporate behemoths, and societal wealth would be widely dispersed among a vast number of small firms.
    Abyss handily crossed by major assumption. Everything will be for the best in the libertarian world, because we can assume it to be so.
    Never let the best be the enemy of the good.

  4. #4

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    Quote Originally Posted by ibis View Post
    Abyss handily crossed by major assumption. Everything will be for the best in the libertarian world, because we can assume it to be so.
    Have you ever heard of too big too fail?
    ''The tattoo has a profound meaning: the superficiality of modern man’s existence.'' - Theodore Dalrymple

    "Any fool can make something complicated. It takes a genius to make it simple." - Woody Guthrie

  5. #5

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    Quote Originally Posted by Mossy Heneberry View Post
    A lot of people may think that free markets can only exist under capitalism. Or that capitalism and the free markets are the same.

    They are not.

    Capitalism is a method of ownership. The free market is a method of exchange.

    Capitalism is just as destructive to the free market as socialism.

    http://c4ss.org/wp-content/uploads/2...capitalism.pdf
    There are many, many interpretations of capitalism. It can be quite subjective. The factors of production, viz., land, labour and capital provide the necessary inputs that we need as outputs to survive such as food, water, shelter etc. and also to make our lives comfortable and meaningful.

    The human spark of creativity or entrenpreneurship integrates the above and allows it to happen.

    Entrepreneurs are intrinsically motivated to begin with, but they need incentives and a belief to achieve their goals. Thats where the debate centres on.

    As Adam Smith said, "For it is not mere benevolence that we expect our dinner from the butcher, baker and brewer, but their own self interest"

    An organisation would no doubt work far better if all employees had their own money involved in its capital and then whatever dividends were agreed upon from the profits earned would be shared appropriately. The more people earn, the more they can consume from other organisations and so on. The production function shifts outwards to the right ad infinutum, but prices can still come down from technological advancement.

    Whats stops the above is Statism, Fractional Reserve Banking and Fiat Currency.
    “The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.” - Friedrich A. Hayek

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    Quote Originally Posted by Mossy Heneberry View Post
    Have you ever heard of too big too fail?
    Sure, but the writer of that piece makes the entirely unsupported assumption that companies only get too big with state aid. Is Microsoft "too big to fail"?
    Never let the best be the enemy of the good.

  7. #7

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    Quote Originally Posted by ibis View Post
    Sure, but the writer of that piece makes the entirely unsupported assumption that companies only get too big with state aid. Is Microsoft "too big to fail"?
    What about Freddie Mac and Fannie Mae? They got plenty of state support and ended up becoming to big to fail. Is MSoft TBF? Absolutely not.
    ''The tattoo has a profound meaning: the superficiality of modern man’s existence.'' - Theodore Dalrymple

    "Any fool can make something complicated. It takes a genius to make it simple." - Woody Guthrie

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    Quote Originally Posted by Mossy Heneberry View Post
    What about Freddie Mac and Fannie Mae? They got plenty of state support and ended up becoming to big to fail. Is MSoft TBF? Absolutely not.
    Yeah, but that's a different argument. Nobody's claiming that companies can't get big with state support, but the author is effectively claiming that it only happens with state support, which is obviously false. The author then builds on that incorrect assumption.
    Never let the best be the enemy of the good.

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    Quote Originally Posted by sandar View Post
    it hasnt achieved that aim as yet because the land owners have missapropriated capitalism for their own ends.
    And how could you ever stop them doing that without taking the land off them?

  10. #10

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    Quote Originally Posted by ibis View Post
    Yeah, but that's a different argument. Nobody's claiming that companies can't get big with state support, but the author is effectively claiming that it only happens with state support, which is obviously false. The author then builds on that incorrect assumption.

    No it's not a different argument. Why are all monopolies State supported?

    And how could you ever stop them doing that without taking the land off them/
    Cael, the problem is not people owning property, the problem is that the system is gamed up to allow some people to have an unfair adavantage of owning property via the State.
    ''The tattoo has a profound meaning: the superficiality of modern man’s existence.'' - Theodore Dalrymple

    "Any fool can make something complicated. It takes a genius to make it simple." - Woody Guthrie

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