BLARGistania
20-10-2004, 08:58
Well, here we go again.
In the pure captalist system, the government does not play an economical role at all. That's the entire idea behind laissez-faire economics. This was the United States during the roaring 20's. Economic boom, spending on margins, and cars. Unfortunalty, the system was a failure. The 'system' left millions of people living below the poverty line while a select few thousand lived the 'high life' of the plutocrats. Fair- well maybe. After all, the CEOs did all the work to start the company, but then again, the workers keep the factory running. Regulations? No, we don't need them, its a cost business doesn't need. Unions? SHould be illegal. Worker's safety and worker's rights? We don't need those either, there are always more willing workers. And we can get them young too.
The problem with capitalism is the fact that there is no economic regulation. Natural monopolies can and will form on their own leaving a single firm to run the market. But, unnatural (coercive) monopolies will also form. These are companies like microsoft in the 90's. They use their size to their own advantage and run smaller competators out of business. Well, other people can enter the market can't they? Whats to stop them? Two things: The size of the existing firm creates impossible barriers to entry. Can you start up a new car firm to compete with GM? Second: Intellectual property. While you work with a company, everything you come up with, even your unformed, untested ideas, are their property.
Its late and I'm tired, more whenever I get back on but this should be a good starting point. BTW, I'm a socialist.