Tuesday, August 23, 2011

Simply Put

Right-wing think tanks like the Cato Institute, Heritage Foundation and others try to promote the idea of the free market. The less restrictions on corporations and the way they do business the better the economy will perform. I want to state right now – do not believe it because it is completely false.

According to one school of logic, each transaction takes place with a thank you at the end and thus both parties benefit mutually. This type of thinking does not take into account leverage. A stronger party has leverage (strength, power, money etc) over the weaker party. An unemployed person during an economic recession has much less bargaining power than during a time of economic boom. This is a simple truth that is often dismissed in the free market ideology.
~ from Just An Example of the Evils of Unrestrained Capitalism by Aaron Krager ~
The point Krager makes is really elementary. If a river is raging out of control and you have in mind the idea to place a paper cup in its path to hold back the impending flood, how successful do you think that will be?

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