Thursday, March 12, 2015

Robert Reich on Free Markets

Robert Reich has made some odd statements, but very pleasing to those who love free stuff...

1. The "job creators" are CEOs, corporations, and the rich, whose taxes must be low in order to induce them to create more jobs. Rubbish. The real job creators are the vast middle class and the poor, whose spending induces businesses to create jobs. Which is why raising the minimum wage, extending overtime protection, enlarging the Earned Income Tax Credit, and reducing middle-class taxes are all necessary.
Bobby, the end user pays all taxes.  The poor pay taxes on almost all of their income, the rich on almost nothing.  As Pynchon said, get them to ask the wrong question and the answer does not matter.  The question is not whether to tax the rich, but "why taxes?"  The answer of min wage, overtime protection and EITC are irrelevant, and cutting taxes for middle class is absurd since any taxes end up coming out of all of their income eventually.
2. The critical choice is between the "free market" or "government."Baloney. The free market doesn't exist in nature. It's created and enforced by government. And all the ongoing decisions about how it's organized - what gets patent protection and for how long (the human genome?), who can declare bankruptcy (corporations? homeowners? student debtors?), what contracts are fraudulent (insider trading?) or coercive (predatory loans? mandatory arbitration?), and how much market power is excessive (Comcast and Time Warner?) - depend on government.
Bobby, as a Jew, you know there was 400 years of free market in Israel before, in direct contradiction to the will of God, the Jews demanded government, their first king.  Things went downhill fast, and really never recovered. There are many examples of anarchic free markets before and after then.  There is a free market, in nature, and then there is government intervention.  AS far as what good government provides, how is that working out so far?  Start by checking your list of "public goods."
3. We should worry most about the size of government. Wrong. We should worry about who government is for. When big money from giant corporations and Wall Street inundate our politics, all decisions relating to #1 and #2 above become rigged against average working Americans.

Go get 'em, Bobby!  You be the first person in the history of mankind to set about with a plan to remake society, and have it turn out well.  Come up with the policies that will make the government for the people.

The problem is where we see such good things, it is accidental, never the result of a program.

If at first you don't secede, try try again.

Feel free to forward this by email to three of your friends.


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