Failure?The Free Market has NOT failed.
At the most basic level, personal choice is maximized by the Free Market. Producers and service providers are The Free Market. These entrepreneurs conduct voluntary exchanges that enrich each party via open and fair contracts.
The Free Market is the most efficient system to exchange goods and services within a society. Economic forces are far stronger and deeper-rooted than political expediency.
Two ChoicesThe polar-opposite of The Free Market is Socialism. Socialism takes away personal decisions and choice.
Under centrally-controlled Socialism:
Sadly, the United States is a mixed economy – part Free Market and part gov’t-created Socialism.
I advocate a move towards Free Markets and a purposeful abandonment of Socialism.
“Let” the Free Market work. Abandon Socialism.
The 2009 Housing Crash, a.k.a. depression, was a direct result of federal, Socialism / social engineering.
This depression was caused by political desire to provide affordable housing to those who could NOT previously afford it – a purely Socialist desire that was in direct opposition of economic reality.
Easy credit, in mass volume, would have an impact. This naďve, shortsighted engineering was doomed to fail (and fail impressively). Could magnanimousness BIG gov’t simply will that some could afford housing? The answer was a resounding NO. And, continued gov’t interference caused the recovery to take almost a decade.
Other DisastersAlso, recent ill-conceived gov't "action" has burdened us with:
Gov't, ceasse and desist!
Gov't, ineffective and woefully inefficient
Please consider a primer on economics, like Henry Hazlitt’s Economics in One Lesson.
Tariffs on steel and aluminum [March 2018] will have large-scale unintended consequences. First, they will limit the amount of steel/aluminum available – lower supply = higher prices. There will be inflation, even with domestic manufactures rejoining the market; they are higher-cost producers with start-up costs. Second, every product that uses steel (and aluminum) will have increased costs of manufacturing… customers will pay more for these products.
Earlier ideas about tariffs “on Mexico” and “on China”? Again, the importers will increase prices to offset the ill-advised and ineffective tariff. This additional cost will be passed on to US consumers. Neither Mexico, nor China pay for these tariffs … or the wall… With tariffs we will pay for the wall via higher prices.
Remember history - The Smoot-Hawley Tariff (1929) preceded the Great Depression. This tariff was a direct cause of that massive financial collapse.
What a yugely, horrible idea!!
Trade War?Protectionism, in all forms, invites a Trade War. A conflict where nobody "wins". The best move is... NOT to play.
Besides tariffs, the following moves are self-defeating:
With protectionism, products made more efficiently (for lower cost) are NO longer available. First, there is a smaller supply that raises prices. And, existing higher-cost producers have less pressure to keep cost “low”… higher prices (again). The consumer loses on two fronts.
So, who “gains”?
Only the protected industry/company gains - a small subset of the whole economy. While it may NOT create a monopoly, it is movement in that direction. Then, if other competitors are eliminated, a gov’t-created monopoly emerges. At this point, everybody loses – less choices and higher prices.
The outcome is in effect, a subsidy for an industry/company. The gov’t unwittingly picking winners and losers AND then forcing the bill upon taxpayers. I’m tired of paying for govt’s mistakes!
It is NOT about the (fiat) money. It is about what is received in exchange; what a consumer gains.
We have a trade deficit because we DO NOT make anything anymore. We don’t make anything because our labor is cost prohibitive. We are NOT completive with other nations’ workforces.
The truth is in, United States citizens and residents have spoken. Pickets and political stands have NOT deterred responsible gun owners. The Market has spoken.