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Originally Posted by sperbonzo
Illegal drug markets is a form of anarchy, where murder, violence, and extortion rule. Free markets are not about anarchy, where the guy with the most guns win. The illegal drug trade is not a free market. In effect, it has it's own regulation, and governments, in the form of armed gangs that use violence to enforce their will.
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Armed gangs do not force the costs, they do not speculate on the price, they do not cut supply so badly the market is fucked, they are no different the an evil corp willing to do cut anyones throat for a profit.... corps force the hand, no different than armed drug lords leading the drug race.
Quote:
Originally Posted by sperbonzo
I thought you said that there is no such thing as a free market, and there never has been. I agree with you on that, so this argument is erroneous.
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That's already been cleared up... I said we have markets within our economy that are free, even gave examples, one being when phone companies started it was a free market first, that then monopolized, then was regulated.
A free market economy, we do not have... like where nothing is regulated, touched, no rules, no greed that would mean we need those rules, etc.. where no regs ever happen, it's a pipe dream... an impossible dream.
Which is probably the #1 reason why Austrian economics fails. They fail to accept the truth, what they want we do not have, and never will, thus it's a failed theory from the start.
Quote:
Originally Posted by sperbonzo
Actually, in the case of the banking market, the federal government removed risk in the form of Fanny and Freddie, thus allowing banks to ignore risk.... Didn't that turn out well?
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They never had any risk, it's all one bank acting as several banks.
Quote:
Originally Posted by sperbonzo
Actually, in history, banks, along with other businesses, have never had a "free market". Banks even less so. Even in the very first lending banks, there were regulations as to who could run them, and where. The governments always had a lot of regulation on banks., so there is no example of a free market bank.
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When banks first started they were setup and ran by people with money, if you had the money to back the deal, you did the business. Even after gov's stepped in, areas of the world were still being backed by a single persons money, running as a bank, without regulation, for centuries. In the end, greed ended this and regulations/rules/laws had to be put in for the safety of the people. It was abused, first..... then regulated!