Capitalism vs. Free Markets

Here is a summary of a discussion in last nights class:

Capitalism admits government regulation and subsidy, that is, it sets policy.  All govt policies will have a winner and a loser, there are the two sides.  The policies are unnecessary, but they do make for winners, something those who paid to win esteem very much.  And then those, safely in their jobs, can dream of someday being a winner, like on TV.


When big corps get subsidies, pay no taxes, crush small farmers with regs only big biz can comply with, the problem isn't "small" the problem is "unfair."  But big corps need lots of workers, who vote, and vote  their pocketbook, that is to have big biz win. When big corps get subsidies, pay no taxes, crush small farmers with regs only big biz can comply with, the problem isn't "small" the problem is "unfair."

In capitalism you can get rich and afford whatever the world has to offer...  in free markets, the world has far more to offer (because of division of labor) and it is all affordable by most people... what cannot be afforded by someone in distress is easily provided by charities... No policies mean no losers and winners, just division of labor, where the real wealth is .... more options that more can afford is better than fewer options only a few can afford.

See Hong Kong, and what USA was about 120 years ago... Private companies put out money in Hong Kong, not the government... everything is cheap and plentiful... and far wider range of goods and services... Hong Kong is not a completely free market, but free enough to be an astonishing alternative to corporatism or capitalism, and communism...

People do not like free markets since you cannot get super rich, crush others, start wars, get bailouts in a free market... that is limited to -isms... gotta have an -ism to have a war, and war is where the real money is...  Free markets bring peace prosperity, and division of labor...  bigger pie at accessible costs for everyone...

 Panama is relatively free, as is Costa Rica... Aruba...  there are plenty of Hong Kongs around.. Monaco, Andorra, Singapore... I think Vietnam will trump them all within ten years...  So can we have free trade in the USA?  No, it won't happen as a country, we are too far gone.  We do have some possibilities, even liklihoods: either we make a free trade zone ala Hong Kong round say, Seattle, or we make any business in USA under $5 million a sort of free trade zone, with no regs, taxes, etc... it doesn't really matter, it does not have to be actual territory, it can be "in the rules."

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