Feb
23
Free Market Myths
Filed Under Economics
George Soros has it totally wrong. This financial disaster is not the death of, or the failure of, a free-market system. It is the obvious, predictable failure of government mismanagement and bureaucracy.
What do you call a system where…
The government controls the money supply by buying and selling securities in the open market?
Legal tender laws prohibit competing currencies?
The former CEO of an investment bank becomes the watchdog of the very organization he used to run?
The government sets short term interest rates via committee?
The government jawbones to strengthen or devalue its currency at the whim of whoever is in charge?
Banks leveraged 30:1 borrow from the government at below market interest rates?
You CANNOT POSSIBLY call that free-market capitalism.
We are witnessing government failure before our very eyes. By attempting to manage our economy and using fiat money to pay for a welfare/warfare state we cannot afford, we have taken our financial system to the brink of insolvency. This is positively *not* a free market system.
Free markets arise naturally where two parties engage in mutually beneficial transactions without interference. Free markets are man’s way of trading goods and services with one another that will leave both parties better off. It is the reason you find markets all over the world, in every culture, in lunchrooms, prisons, workplaces and homes.
Governments cannot “create” free trade with acts such as NAFTA or 400 page trading documents, they arise only in the absence of government interference.
Free-market capitalism in America? We should be so lucky…
To read more about how our economic system is not a free market, read here.
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2 Responses to “Free Market Myths”
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You sound like Ron Paul.
Thanks for spending time on the computer (witring) so others don’t have to.