Market is not more efficient. Natural monopolies are everywhere

Why even bother asking this question when China literally answered this very question years ago! CIS is sooo out of touch with the world...

Market more efficient !? Are we talking about the same market that created global financial crisis in 2007 !? Complete delusion 😊

@mr.cromwell9472

14 күн бұрын

The market got the government's incentives and efficiently acted upon them. It's not the market's fault for any big crisis, it is the state's. Always.

@lawsonj39

13 күн бұрын

@@mr.cromwell9472 You're right in the sense that governments should "always" assume the responsibility of regulating the market. But the reality is that insufficiently regulated markets tend toward monopoly: the big fish swallow the smaller fish. (You don't have to reach total domination by one or two entities for this monopolistic trend to concentrate wealth to a significant degree.) And as that monopolistic trend takes hold, powerful private forces essentially take over the government, resulting in government shirking its responsibility to tax wealth and regulate the market in the interest of the whole people. That leads to market excesses that create all sorts of inequities and crises--and those crises are the fault of the inadequately regulated market.

@mr.cromwell9472

13 күн бұрын

@@lawsonj39 literally everything you just said is wrong. Beginning with the very word monopoly, it means getting the grant of being the sole manufacturer/distributor/.. of a product by the GOVERNMENT. Free markets lead to competition, creative destruction etc. Unless government severely intervenes there won't be any monopoly at all and any big company eminent in their field will be so because of product excellence and or good prices. The fact that businesses 'take over the government' i.e. lobby simply underwriters the point to take power away from the government so that there is nothing to lobby about and have, you guessed it, more free market. Regulations are always useless/inefficient/unfair and should not exits. At all. Let the consumer vote with their wallet.

Such a good interview.

The real question is: who creates money? Banks create money each time they provide a credit. Government is coerced (by the modern system) to start its spending cycle by borrowing money (instead of creating it in the pre-modern systems). Understanding this problem can help us decide whether the market is more efficient than government or not.

Where are the sources of waged income? and what is happening in that space? If there is no waged income available nor likely then the only solution is the intervention of the governments "novel investment" in perpetuity with the dangers of those actions managed or altered by the use of AI so that governments can explain to people why their income for that year must go down or rise. We are heading for an age of next to zero waged incomes provided by the corporate identity. Corporates' prefer AI precision waged income unless they cannot count.

Scouting around the issue of extreme level of concentration across many aus industries. Got nothing to do with "wishy washy" changes in social views. Give us a break!!!

Interesting

20th century thinking.

NO IT DOES NOT HAVE TO TAX!. WHENEVER THERE IS A WAR IN THE OFFING GOVERNMENT GET LICENSE TO SPEND WITHOUT RESERVE, MOST OF WHICH IS NEVER PAID BACK NOR TAXED!

No without fair regulation.

@naughteedesign

15 күн бұрын

“FAIR”LOL

@econrith

15 күн бұрын

The regulators can be persuaded so easily

@naughteedesign

15 күн бұрын

@@econrith and when there's only one system users cannot move

@toyotaprius79

13 күн бұрын

​@@econrithbought and sold even

Efficient in what way? At outsmarting government regulation? Yes At delivering the services society needs? Yes At ensuring society maintains a stable economic system? No (but governments aren't any good at that either!) The problem is that taxation isn't redistributive, it brings in revenue that government can use to provide services but doesn't make the lowest paid wealthier - in fact it does the opposite as governments tend to buy from large companies! While taxation is also used to provide a safety net, that doesn't create opportunity for the poorest to accumulate capital (and ideas such as Universal Basic Income would only make it worse as it inflates the monetary system driving further accumulation by those with capital.) Inequality is natural in all systems, that's very different to "it's necessary" and prospect of reward isn't the key driver for effort; people naturally want to do what they are good at and add value, expecting reward for doing so is natural but not the cause of the effort. The issues society faces are driven by poor structuring of the markets by government, which is because of poorly structured aggregation of democratic authority, because of party politics. Solving that leads to better governance, a better civil service, better regulation, better markets... As an example, it's easy to fix wealth/income discrepancy - tax corporations based on wage discrepancy, the greater the discrepancy the more they pay. That not only flattens the wage curve but it increases the wealth of those lower down the hierarchy in a corporation enabling them to leave and start up their own company to compete with the large incumbent, driving efficiency in the market. Or alternatively, zero cost of basic living (as opposed to Universal Basic Income) allows people to take on risk, start up their own company, drive efficiency in the market... It's a failure to look at such alternatives that is the problem with governance, but the question "are markets more efficient than government" is the wrong question. Markets are very efficient at driving inefficiency as much as they are allowed to by government/regulation - because inefficiency is profit! It's ironic that he can't recognise the leftward drift which is the cause of his pessimism is due to the failure of governments to regulate the markets properly and deliver for society, because of a lack of understanding of how markets work by economists such as him and a dearth if ideas!

@user-sm8j

13 күн бұрын

💯👍

Yes.