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jerZ07002
Supreme tranceaddict
Registered: Dec 2006
Location:
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| quote: | Originally posted by George Smiley
I voted "yes"
All power to the Soviets!
Actually, does "deregulation" (not even sure we actually have that over here!) also apply to employment regulations? Or just business practices? |
so what about the collapse of the soviet union? if strict regulations were so successful surely it would have fostered a stronger economic environment which would have held the union together.
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Jun-18-2008 17:58
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LazFX
Supreme tranceaddict

Registered: Aug 2004
Location: 9th Circle
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| quote: | Originally posted by Capitalizt
Down with regulation! It always distorts supply and demand. It's best to leave people free to buy, sell, and trade with one another voluntarily with no artificial restrictions. Free trade and free markets always allocate resources efficiently and develop a natural equilibrium over time. When government gets involved, it only mucks things up and prevents people (and businesses) from planning effectively for their future. You might score short some term political points by arguing against those "greedy companies", but government controls are very harmful over the long run. |
you see, thats where I am torn. I am all for free enterprise, but when only a few in this grand country are reaping the rewards, is it really free?
The Airline industry has gone to pot, along with the auto, trucking, farm and so many more that this country cannot afford what seems to be on the horizon..... crops are drying out, all of this flooding, Cats and dogs living together!! Biblical; Old Testament stuff ...man 
but seriously, Americans wants a quick fix, and in truth this country needs one.. are we just going to sit back and let the Free Hand guide us? Or would a little push help?
maybe its the wine talking, but .......
fuck man, have you seen the price of milk??? 
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Jun-18-2008 19:07
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Capitalizt
Supreme tranceaddict
Registered: Feb 2005
Location: USA
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| quote: | Originally posted by LazFX
you see, thats where I am torn. I am all for free enterprise, but when only a few in this grand country are reaping the rewards, is it really free?
The Airline industry has gone to pot, along with the auto, trucking, farm and so many more that this country cannot afford what seems to be on the horizon..... crops are drying out, all of this flooding, Cats and dogs living together!! Biblical; Old Testament stuff ...man 
but seriously, Americans wants a quick fix, and in truth this country needs one.. are we just going to sit back and let the Free Hand guide us? Or would a little push help?
fuck man, have you seen the price of milk??? |
The problem is..When government gets involved and tries to "fix" problems such as high gas prices etc, nothing is really fixed on a fundamental level. Sure, you could impose a profit cap on companies that explore for oil, and you could impose a price cap at the pump, making the maximum price $2/gallon. These are typical political fixes and they will make the people VERY HAPPY for a short time. The oil companies will be paying more in taxes, and the people will be paying less at the pump. Life is grand...Let's all hold hands and sing! 
The problem comes months/years after these problems are "fixed" with a political solution. You need to ask yourself what are the long term ramifications of these policies? What happens when you reduce the profitability of any activity (oil drilling in this case)? You tend to get less of it. When you limit the profitability of any risky venture, people tend to do less of it. In other words, we will get less drilling, less exploration for new energy, and LESS SUPPLY on the market...because the incentive to produce energy has been reduced.
Now on the demand side...if the government imposes a price cap of $2.50 per gallon, what happens? When gas prices are less of a burden, people tend to drive more and conserve less. The public will be thrilled with this policy over the short term...but the long term consequences of low energy prices are LESS conservation and much HIGHER use! (demand)
So in short, we will have less supply and more demand. When the government tries to control any industry by raising taxes or capping prices, you get the same result, whether you are talking about car insurance, tuition, corn prices, milk prices...whatever. When a company is not allowed to charge the prevailing market rate, demand rises and supply drops.. This government "fix" has only postponed the day of reckoning, and is a recipe for disaster over the long run.
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Jun-18-2008 19:45
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