I was asked, do I really think we don't have free markets. That it is free market that has landed us where we are now, isnt it?
No, since the base of all business has been under federal control for the last 70 years. They have been following the meanderings of Keynesian economics which demand the use of supply side averaging while ignoring 2 major facts. 1: that keynes averaging ignores 40% of the economy in entrepreneurs, and 2: that propping up the supply to await a return of consumer demand. This presupposes that consumer habits will return to the previously wasteful and unsustainable habits of debt loading that were in place before.
It also relies on the fact that most will never take the time to understand what inflation actually is. If the Fed controls the printing of money, yet in no public sector do wages track 1:1, where does the difference in actual value go? Not to the people, this is obvious. Not to the businesses, as for them to get it, it must also come from consumers (who didnt already get it). Therefor the difference in actual value must remain with those in charge of printing the money, the difference stays with the government.
At the rate of 2% (Bernankes stated wish for stable inflation) we can compound that out to see a doubling of consumer prices over around 35 years. (Reality would show that it is actually much faster), so where does that difference go? Thats right, right back into the government coffers.
So in that mess, with the fed on control of every basic aspect and control of trade, from artificially controlling interest rates by fiat, to the rate of inflation, we have had free markets? We have had government setting up a business environment that is conducive to the return of the robber barons, but not free markets. Note that this has been constant regardless of who is in the white house or what party has control of congress.
No, since the base of all business has been under federal control for the last 70 years. They have been following the meanderings of Keynesian economics which demand the use of supply side averaging while ignoring 2 major facts. 1: that keynes averaging ignores 40% of the economy in entrepreneurs, and 2: that propping up the supply to await a return of consumer demand. This presupposes that consumer habits will return to the previously wasteful and unsustainable habits of debt loading that were in place before.
It also relies on the fact that most will never take the time to understand what inflation actually is. If the Fed controls the printing of money, yet in no public sector do wages track 1:1, where does the difference in actual value go? Not to the people, this is obvious. Not to the businesses, as for them to get it, it must also come from consumers (who didnt already get it). Therefor the difference in actual value must remain with those in charge of printing the money, the difference stays with the government.
At the rate of 2% (Bernankes stated wish for stable inflation) we can compound that out to see a doubling of consumer prices over around 35 years. (Reality would show that it is actually much faster), so where does that difference go? Thats right, right back into the government coffers.
So in that mess, with the fed on control of every basic aspect and control of trade, from artificially controlling interest rates by fiat, to the rate of inflation, we have had free markets? We have had government setting up a business environment that is conducive to the return of the robber barons, but not free markets. Note that this has been constant regardless of who is in the white house or what party has control of congress.